A Research On Centralized Procurement Improvement Of Goods And Materials For The D Telecommunication Company

With continuous development in Science technology, new things rushes out everyday, and all walks of life have made tremendous achievements. In the telecommunications industry, the competition is also deepened further, enterprises gradually realized the importance of cost reduction to achieve sustained growth in profit. Among the enterprises, procurement, which passes demand information, is not only the starting point of enterprise’s value-added process, but also the reflection of its competence in the market. In the continuous developed procurement theory, centralized procurement has been widely applied in the group enterprises. Centralized procurement can effectively lower purchasing costs and improve core competitiveness of the enterprises. However, during the implementation process, without fully understanding the management ideas of the centralized procurement, enterprises still need to strengthen the practical application of its theories in the projects.This paper firstly summarizes the current situation and trend of the issues associated with domestic and foreign research on centralized procurement, and then introduces theories of "lean procurement" and "VIM", etc. Followed by analysis of D company’s current situation of centralized purchasing, it briefly introduces D company’s development history and operating status and mainly describes in three aspects:its purchasing organization management, business process and information platform. The problems from above are also analyzed one by one. After a summary of D company’s problems occurred in centralized procurement, such as material coding, regulations, supplier management system, department responsibilities, public bidding and through the causal method, it shows the major causes are weak internal supervision, low purchasing management informatization degree and lack of motivation. The author also summed up some experience and lessons during the implementation of centralized procurement of D company. Finally, from the view of combining theory and practice, the author provided targeted optimization scheme for D company’s centralized procurement, such as changing purchasing organization management mode, improving supplier management system and implementing new strategies for procurement, etc. Hope it can achieve effective resources allocation to enterprise and make contribution to enterprise’s competitiveness improvement.