The Research Of The Centralized Procurement Management For Z Co.Ltd

The integration of the global economy is speeding up,and the competition among enterprises is becoming fiercer.Centralized purchasing,as one of the most effective approaches to expand profit space for enterprises,is adopted by many large-scale group companies.Centralized purchasing is to internally integrate similar procurement requirements within the enterprise.Its functions include acquiring the right to negotiate on the market demand scale,reducing the procurement cost,increasing the economic benefits of enterprises,and improving the professional level of procurement as well as guarding against the risk of procurement.Thus,centralized purchasing is an important business strategy in modern enterprise management.The research object of the paper is Z Company,which is an influential large-scale group company in the field of domestic oil product trade.Due to the high proportion of the oil purchasing cost in its total enterprise cost,purchasing management is essential for the company.With the growth of Z Company and it pattern change in the supply of industry resources,its centralized purchasing management of oil resources is trending.At the end of 2015,Z Company has implemented centralized purchasing and operated for more than two years so far.Even if certain effects to reduce costs are paid back,there is still a long gap away from the desired effect,on the subjective and objective accounts.This paper made an in-depth analysis of the problems encountered in the centralized purchasing process of Z Company,and then presented a series of targeted projects for optimizing and improving.First,the existing centralized purchasing management mechanism should be improved in three aspects as demand planning,configuration rules and performance assessment,so as to ensure its standardized operation;Second,formulated by the industrial features,the supply chain management mode should be implemented,the transportation and warehousing transferring facilities should be improved,in order to increase the efficiency in the centralized procurement;Third,information management system should be applied to the whole procurement process.Fourth,corresponding safeguard measures should be taken in the centralized purchasing consciousness,purchasing power and supervision mechanism.In practice,Z Company should better coordinate between the internal and external enterprise,continuously improve and explore the applicable centralized purchasing management mode in order to increase its benefits and improve its competitiveness.The paper was closely attached to the current situation for centralized purchasing management in Z Company.Hopefully,the paper might shed light on the directions in improving the centralized purchasing management for Z Company and also for domestic resource-trading group companies.