| With the development of global economy and market, the importance of procurement and supply chain management has been raised up strategically by enterprise and industry, it is necessary to study the procurement and its innovation under supply chain to reach a better cost containment & reduction to survive, profit and develop modern enterprise nowadays.Benefiting from author's solid procurement experience in Fortune 500 enterprise and MBA study in Hefei University of Technology, he analyzed the transition of procurement and supply chain management under increasing competition environment, the study process combined the theory with actual examples of the procurement innovation in his company, the main points are below:1. Firstly the characteristics of traditional procurement and its supply chain is extended in the content, especially on its weakness and limitation;2. Secondly, with the tool of VSM(Value Stream Map) to analyze the process and rebuild the new procurement process under supply chain environment, it leads the revolution in procurement system and organization, the cost reduction considered the total cost of supply chain. These measures rebuild the traditional non-value added procurement into a value added process, created the core-competency in the enterprise;3. The paper outlined the all aspects of procurement and supply chain management with brand new viewpoints, put forward 3 procurement management stages in a creative way, these methods guide procurement management innovation, re-organization procurement project management, by introducing advanced procurement tools and platform to understand and improve the procurement management and supply chain, to reach the maximum contribution to enterprise;4. Finally, the existing weakness and problem in procurement and supply chain has been reached for the future development, supplier rating and their development has been raised also, as well as supply chain risk management. |
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