Case Research About The Central Procurement Of H Company

With the development of China's economy,enterprises operating in China have gradually developed from extensive management to refined management.Cost plays an increasingly important role,and the key part of cost control is procurement.More and more enterprises begin to pay attention to the refined management of procurement Therefore,it is of great significance to study a case that has a complete model and advantages in purchasing management,which is valuable for other enterprises to improve the cost optimization in purchasing management.H Company is a multinational large food and beverage enterprise and has made significant performance since reformed purchase model in 2013.This article selects the H company as the research object for centralized procurement model research through case study,literature analysis and comparative analysis.Firstly,this paper elaborates on the theory of basis and centralized procurement at home and abroad to figure out the trend of procurement development.Then,it describes the central procurement development and remarkable performance of H company.Therefore,this article studies H company's procurement change motivations and goals based on its competition environment,internal organization strategy and cost pressure.Then it continues to further analyze H company's principles of centralized purchasing mode,and points out the key elements design and combinations of this mode,such as management by objectives,organization structure,internal and external collaboration and specific procurement processes.These key factors ensure H company's centralized procurement implement in two years.Finally,based on case analysis,this paper puts forward three revelations.The first point is that the procurement model must match the structure and scale of the company to realize the benefits of integration.The second point is the orderly implementation of the centralized procurement model can ensure thoroughly change in whole processes.The third point is to set a correct and standardized target management system to ensure that the procurement performance is predictable and monitorable.All in all,on the one hand,a clear procurement concept,specific performance goals,reformed processes,internal and external collaboration are basic conditions to implement centralized procurement mode in H company.On the other hand,it provides the full picture of centralized procurement mode and implementation guidelines,which can offer reference for our China enterprises for procurement development to help them build up competition advantages.