The Supplier Management In International Engineering Project Procurement For CEIEC

With the further development of global economic integration, and the further implementation of "Go-global" strategy as well, a large number of Chinese companies are heading to the overseas market to participate in the international competition. Chinese international engineering is growing so fast. China National Electronics Import&Export Corporation (hereinafter referred to as the CEIEC) is the international engineering contractor which is continuously growing in this global market.To improve the management, CEIEC decided to change the package procurement model into independent procurement. It wants to improve its competitiveness by increasing the control efforts during the project process, which can reduce the procurement cost, reduce the risk in projecting, improve the quality of project, and boost the profits. However, the advantages of independent procurement model did not be incarnated at first. It’s because of that the procurement management of CEIEC was still remain the level which in the package procurement time. The procurement management needed to be improved while so many problems needed to be solved during the procurement. Without a scientific and rational management for domestic supplier was one of the vital problems.To solve the problems in procurement in CEIEC, this thesis is aimed to improve the supplier management and procurement management. In the supplier classification, this thesis uses ABC classification method to find the key suppliers in one project and focus on the management of them, In the meanwhile, this thesis also uses four-sort classification method to classify the suppliers into four sorts by cost factor and risk factor, then to choose different cooperation strategies to the suppliers. In the supplier evaluation and selection management, this thesis uses AHP(Analytic Hierarchy Process) to build up comprehensive evaluation system of suppliers, and combining the comprehensive evaluation system and supplier classification strategy, this thesis proposes a supplier selection strategy. It can increase procurement efficiency, reduce procurement risk, ensure the quality and reduce the procurement cost by optimizing the supplier management, which to propose the supplier classification management and supplier evaluation and selection approaches. The solution proposed by this thesis had achieved a good result, and filled the blank of supplier management in CEIEC.