The Study Of Raw Materials Procurement Management In Supply Chain Management

Along with the evolving technologies, the development of economicglobalization and the diversity of customer demand, enterprise’s competition isbecoming more and more intensive. The management mode of enterprise hascompleted the transition from Vertical Integration to Horizontal Integration.Competition has changed from direct competitors for the business to the associatedsupply chain. Purchasing management is no longer the single way to reduce the costof the production and operation of enterprises; it’s an important process to achievevalue-added activities. The cost of purchasing directly affect the enterprise production,the operation activities and the price of related product services, even related topractical supply chain profit. Purchasing is an important part of enterprise. Costaccounts for much of the enterprise production cost, and plays the third source ofprofits for enterprise. To reduce the enterprise cost and enhance the marketcompetitiveness of strategic purpose, the management of purchasing link and controlmust be strengthened.Bases on the supply chain and supply chain management, the paper introducedthe theory of purchasing and procurement management, and introduced thecharacteristics of the procurement under the environment of SCM and the role ofpurchasing management in enterprise management. Refer to procurement relatedliterature, combining the current situation and the existing problems of the purchasingmanagement of REL company, the paper puts forward several measures to improvethe procurement management: subdivision of material, a material location matrix andusing the scoring model scientific fixed position to the procurement of materials,different materials by using different purchasing strategy; In view of the existingsupplier evaluation objective, fair, justice, to construct evaluation system of scientificsupplier management, reasonable establishing scientific supplier management andevaluation system, evaluating currently supplier fairly; use the AHP method to searchand select suitable suppliers, and we have built up a bridge of strategic cooperationthrough communication, to the formation of a stable supply.The research has the practical significance on the solutions for REL company’sproblems, and provides a good reference and utilization value for other similar enterprises in the purchase management operations.