Research On Procurement Management Of H Company

The procurement managing level of one company plays a very important role in his profit making capability while rationalities of his procurement managing model, procurement process and procurement strategy are key factors to decide the level of procurement managing. As a typical, large-scale, state-owned construction company, H Company, which was running under planned-economy system before, is facing many problems in his procurement managing system. This article expounds and analyzes profoundly the problems in its procurement system based on theoretical analysis on procurement model and strategies, and re-engineers existing procurement process by methods of comparison and intuitive judgment, then analyzes and points out the key points and difficulties when such re-engineered procurement process would put into practice, finally, possible risks under new procurement management system are evaluated and constructive countermeasures are suggested. It will conclude that appropriate centralized procurement managing mode will do much help in saving cost of company and be easier to control commercial corruption in procurement activities than existing procurement model, which is decentralized procurement. And it will be of practical significance and provide some certain references for entire construction industry to reform the procurement system.