The Study On The Procurement Under Supply Chain Management

Under new economic circumstance characterized with cyber-economy, knowledge economy and E-commerce, How to utilize advanced management and technologies to improve its competence is one important problem for traditional manufacturers.Based on mutual-confidence, emphasizing value-added function, Supply-Chain Management, a new management norm quite different from current one is theoretically popular from 1990s,which connects suppliers .distributors and end-users by feedforward of information flow and feedback of material flow and information flow. To implement SCM is to make a manufactory more competitive with the result of higher profits.Purchasing or procurement is one chain among S-C, which connects a company with outer organizations in its upper parts. Some learned person argued that optimization of the whole S-C should start from procurement. First, procurement is the starter of the whole production. To maintain the production round-the-clock, constant material supply is a must. Second, the costs of original material and parts take a big share in the whole costs. The control of the procurement costs is an efficient way to increase profits, Third, from a study of the value-added contribution of three segments; procurement, production, marketing, it can be concluded the rote of procurement outweighs the other two. Apart from above, original material procurement is closely related to inventory. It is essential for a manufacturer to attach more importance to procurement so as to solve higher storage.This dissertation: The study of procurement under Supply Chain Management, expounds the definitions of procurement and procurement management. Under the new management norm, the content and the status of them has changed from the respect of supply to the respect of resource that means procurement is not only material supplybut the identity, purchasing, obtain and management of resource or potential resource.Procurement strategies are a series of plan and executive measures. In this dissertation, the author gives more details of the characteristics of the development of the procurement strategies in different 5 stages from 6aspects.Among the procurement strategies, many quantitative problems arise, of which are how to assort material, how to evaluate suppliers and how to distribute purchasing amount among suppliers. In this dissertation the model of material assorting based on AHP, the model of suppliers evaluation based fuzzy multi-objectives, the model of the amount distribution with two different kinds of price discount is respectively discussed. Especially a new concept of virtual material to define threshold is introduced. In themodel of supplier evaluation, two methods-the shortest distance from the most idealpoint and the farthest distance from the least ideal point are discussed. In the end of the chapter 4, the author poses the problem of optimization of procurement logistics.In the last chapter, e-procurement is discussed. What is e-procurement, how to execute e-procurement, what will e-procurement bring about is detailed discussed. Finally concerning the current enterprise informationization in China, two different schemas of e-procurement for Chinese manufacturing are put forward.