Research On The Procurement Strategies Of L Insurance Company

In the post-COVID-19 era,the world faces both opportunities and threats.Major enterprises in the economic downturn cycle,have carried out fine management of the business.As an important part of the normal operation of enterprises,procurement plays a key role in the fields of cost reduction and efficiency improvement.With the overall improvements in business management,the procurement function should rise to a strategic height and great value beyond its function itself.Procurement strategy is carried out by the implementation of a series of strategic and decision-making sourcing decisions,through the combination of strategy and plan,it put the emphasis on the formulation and implementation of strategy.Compared with manufacturing enterprises,the procurement activities of non-manufacturing enterprises do not have mature theoretical framework and management tools,and the procurement strategy of indirect sourcing needs to be paid attention to by the senior management of enterprises.As a multinational insurance leader,with the implementation of the comprehensive strategic transformation in 2019,business departments under Company L have carried out strategic reform from top to bottom,to conform to the company’s overall strategic direction.With the expectations of Company L senior management of procurement function from the "support" and gradually expand to the "business level" cross functional transformation,procurement needs not only solve the sourcing requisition for the business department,at the same time,more involvement in the cost budget and cost control phase is expected.Although the procurement strategy management team of Company L has never stopped trying to reform related procurement strategies,the final results are not good as expected.Based on the above background,this thesis reviews the relevant theories of procurement management and procurement strategy management,and proposes the Kraljic matrix,total cost of ownership model and strategic management tools for supplier management.This thesis takes the procurement strategy of Company L as the research object,and lists five strategic objectives of Company L at the global level,combines relevant data collation and interview data,takes the internal and external environment of Company L’s purchasing business as the research starting point,and summarizes the problems faced by Company L in the current background of purchasing management by analyzing the results of investigation and interview.Through quantitative and qualitative tools,in-depth exploration of procurement strategy optimization measures.Using EFE and IFE matrix,combing the analysis of SWOT,company L’s procurement strategy should follow WO strategies.By further breakdown WO strategies into Competitive Strategy framework,with the application of the quantitively strategic planning matrix,Company L should apply the low cost strategy in procurement business.From the three aspects of material classification optimization,cost control optimization and supplier evaluation management,the thesis provides a specific strategy implementation plan for Company L’s procurement business and discusses the importance of relevant safeguard measures.This thesis combined with the work practice,the use of procurement strategy and other modern management theory,put forward the current economic normal under the procurement strategy system.It is expected that the selection and implementation of Company L’s procurement strategy,as well as relevant safeguard measures,can further improve the status of procurement strategy in the organizational structure of similar enterprises and help improve the overall management level of enterprises.As for the strategic measures proposed in this thesis,due to the different backgrounds of companies,they cannot be widely applied to the enterprise management practices in the same industry.However,it is hoped that the research framework and theoretical contact in this thesis can provide some reference for other companies in the same industry,and may be helpful for the further development of the current exploration of procurement strategy theory.