The Research On Strategic Procurement Management Of Global Company EM Group

In recent years,with theincreasing investment in global infrastructure,China's valves industry have entered a rapid developing path.At the same time,enterprises are facing increasingly fierce competition,customer diversification and customized needs bring new challenges.EM company is a professional enterprise of industrial valveswhich is the key equipment of fluid control system.As a subsidiary of multinational enterprises in China,Chengdu plant of EM company is also facing tremendous market pressure.Therefore,EM company actively seeks ways to enhance its competitiveness by focusing on reducing the operating costs of enterprises.The reduction of purchasing cost has a great impact on the overall profits,hence EM company focused on the optimization of cost through purchasing management.However,tactical price negotiations can only reduce procurement costs in the short term,while strategic procurement is the good way to improve the performance and achieve the goal of total cost reduction in the long run.Therefore,the topic of this paper is based on the above background.On the basis of theory studying of strategic procurement,the paper is taking the purchasing activities of EM company as the research objective.Firstly,the paper analysesd the problems that existing in the procurement management.It is pointed out that there are some problems in the purchasing management in EM company,such as single method of purchasing cost control,imperfect supplier evaluation and management system,and unsmooth purchasing process,etc.Secondly,according to the theory of strategic procurement,the paper makes a comprehensive and systematic analysis of EM company's strategic procurement,which is divided into three modules: purchasing cost control,supplier relationship management and purchasing process management.On this basis,the paper put forward the methods and measures to optimize each module.Finally,the paper advanced the safeguard measures for the implementation of strategic procurement,so as to play the valuable role to improve EM company's market competitiveness.Based on the practical work and the modern management theory of strategic procurement,this paper proposes to establish a strategic procurement system under the new economic normal,to formulate differentiated purchasing strategies,and improve the supplier management and purchasing process.This paper is aim to provide some experience and inspiration for enterprises that encounter similar problems or are about to face itby the study of EM company.