Research On The Risk Management Of "A" Company’s Oil&Gas Equipment Suppliers

Oil and gas equipment industry has a strong special nature,its main business is provide the appropriate equipment and after-sales service to oil and gas exploration companies.Into the twenty-first century,although countries around the world in the growing demand for energy,but the international oil and natural gas prices have shown a huge fluctuation.It brings the corresponding change to the petroleum natural gas terminal product company.In this context,as an internationally renowned oil and gas equipment suppliers,“A” company’s procurement of components in China’s business behavior for the group is very important.Therefore,it is necessary to establish a supplier risk management model,which is suitable for China’s national conditions,which is the inevitable choice for the group to control the risk effectively.This paper aims to understand the customer’s needs by identifying the business risks in China and establish an improved risk management model based on identification,control and prevention.By sharing internal and external resources,reducing operating costs in period,improve the efficiency of corporate governance,enhance comprehensive competitiveness and achieve a win-win between the company and suppliers.“ A” company belongs to the Group’s global procurement center in China,the company’s current management of the supplier is limited to the cost,quality and on time delivery management.Implementation of complete the purchase orders through the Purchasing Department,Quality Department and fulfillment Department,did not identify a variety of risks,which has been a serious threat to the operation and survival of enterprises,cannot meet “A” company’s requirement in China with a rapid development of the procurement business needs.With the international and domestic market Environmental changes,the company lacks adequate risk awareness and resilience.In this paper,literature,analytic hierarchy process and empirical research are used.Through analyze and summarize the results of research from the domestic and foreign scholars in recent years to get a literature review.By analyzing the existing supplier management model,the paper analyzes the shortcomings of “A” company’s supplier management model,and provides a theoretical basis for the empirical study of the paper.Through analytic hierarchy process and empirical analysis of “A” company’s supplier management model to explore shortcomings in existing supplier management model,combined with external customer’s feedback and the status of inter company,to improve the existing supplier risk management model.This paper hopes to establish an effective supplier risk management model to help company make up for such a loophole,to the company’s overall management level has been rapidly upgrading to lay a solid foundation.