The Research On Innovative Procurement Model Of JOVO Group

Since the21stcentury supply chain management (SCM) is regarded as one of thepopular field for research and gains wild attention among enterprises. Purchasing asthe starting point of product value-added process plays an extremely important role inproving competency of supply chain. Purchasing under SCM is to replace the plainpurchasing by reasonable purchasing. In other words SCM is to choose the rightcommodity and purchase the sound quality commodity from the appropriate supplierin the competitive price and right time; Purchasing should be regarded as the processwhich is to gain product and service through better supply chain managementcustomer-oriented purchasing model and basing on supplier chain information sharingas well as long-term cooperation. Therefore it is the urgent topic for all the enterprisesto innovate the purchasing process on the basis of its actual situation by using thetheory of SCM..Basing on SCM theory this paper is to analysis current purchasing model and itsproblem for JOVO group. It points the problem like back-ward purchasing model poorpurchasing organization structure inefficient purchasing process high purchasing costunreasonable inventory as well as the uncoordinated with supplier. Meanwhile thispaper elaborates how to innovate purchasing model and how to build brand newelectronic centralized purchasing model so as to generate purchasing economies ofscale advance purchasing follow improve purchasing efficiency and reduce cost. Thepaper also statespurchasing innovation plan and operation system. At last the paperdiscusses the necessary measures to perform so as to make sure the new purchasemodel can be preceded successfully.This paper will be meaningful and constructive for JOVO group to innovate itspurchasing management reducing purchasing cost and improving its competitivewhich will be also the guidance for other enterprise’s reference.