Research On Centralized Procurement Management Of KH Group

Since the reform and opening up,China has attracted more and more foreign enterprises to make investments and set up factories.Under the circumstance of China's economic development,these foreign-funded enterprises bring advanced management philosophy while making great economic profits.The author has been in the procurement department of a US wholly-owned food company since 2010 and has gone through the merger and acquisition with K Group as well as the founding of KH Group.After participating in the process of changing the management mode of the newly established group,the author has deep impression in efficiency gains regarding to the implementation of centralized procurement.Therefore,the author takes KH Group as the research object,and makes further discussion about the implementation of centralized purchasing management model,which can bring some inspiration to the group companies preparing to implement centralized purchasing.This paper firstly summarizes the purchasing management theory involved in this article as the theoretical basis of this study.Secondly this paper has a full description and analysis about the H Company and K Group's own procurement management model before their merger in order to find the two companies' problems and shortcomings in the procurement management.Thirdly,this paper puts forward the solution ideas and suggestions on the centralized procurement management issues,and a set of centralized procurement process based on the KH group's long-term development.Finally,this paper summarizes the results of centralized procurement of the KH Group,in order to find out the shortcomings and get optimization in the future study step by step.As the trend of today's purchasing management,centralized procurement management model gets much attachment and is adopted by more and more companies.Centralized procurement has become an important tool to reduce procurement costs and achieve the ultimate value of purchasing department especially under the new normal economy.It is hoped that the study will provide some help for domestic enterprises in the exploration of centralized procurement.