DQ Company Material Procurement Mode Optimization Analysis

The procurement mode of material is one of the important factors to decide enterprises’ survival or development in the large-scale machinery manufacturing enterprises. Because the status of supply chain management has gradually improved in the daily management of enterprises, and there is a close relationship between the overall cost of supply chain and enterprise competition level, so the enterprise should strengthen the optimal management of the procurement mode. Due to the national laws and the requirements of the various management systems, the existing procurement mode is relatively single, the methods of controlling purchasing cost are limited, and supplier management system isn’t perfect, these reasons lead that the cost of whole supply chain have no effective control. A effective procurement model not only can effectively improve the core competitiveness of enterprises in the industry, but also the situation of the enterprise’s own management, material procurement and supplier management all can have been significantly improved and enhanced.In this paper, the company named DQ as an example. DQ is a large manufacturing which produces the large steam turbine of power station. Facing the complex market conditions of the world, the original procurement mode has dramatically changed. Now, the company has faced so many questions, such as the change of users’ requirements, lack of technical preparation and effective management to suppliers, these questions have seriously affected DQ’s material procurement. From the view of reducing procurement cost and the supply chain’s cost, improving the delivery rate of enterprise, strengthening the management of supplier, this paper will find the method to optimize the procurement mode. Based on the present situation of the procurement mode in DQ, we will find the problems of the procurement mode of DQ and the reasons, and we also will propose a new procurement model with DQ’s own characteristics. In order to ensure the strategic procurement mode smoothly implementation, we will list some corresponding institutions. In the end, we will describe DQ’s performance. This study will have a great significance in reducing procurement cost, improving delivery rate and strengthening supply chain management.