The Empirical Study On Feed Company's Procurement Management Of Raw Materials In The Supply Chain

With the development of global economy, science and technology, the competition between enterprises are increasing from 1990s. Enterprises are facing an uncertain market because of the social unrest. In this situation, Porter's management mode--"vertical integration", which guides the enterprises' development, can not adapt the demand of new times, while the management mode of "horizontal integration" comes into being. Since the supply chain management has been raised from 1980s, it has become the key guiding management ideology for many enterprises. Supply chain management is an integrated management philosophy and methods, which has significant differences from the traditional models of production management. From the perspective of system, it reengineers and optimizes the business process, realizes the synchronization of the enterprises' operation and the maximum efficiency of the whole supply chain. Procurement based on the theory of supply chain management is an important means of resource decision-making and the enhancement of the core competitiveness in modern enterprises. By optimizing the procurement process, improving the procurement strategy and managing the inventory and supplier relationship scientifically, this model can reduce procurement costs, thereby improve the efficiency.In this paper, first of all through the systematic presentation of the supply chain, the management of supply chain as well as the procurement management, it laid the theoretical basis of this article; then it analyzed procurement as well as procurement management, and showed the status and role of it and the change of procurement method in the supply chain; later it came to the focus of this paper: the study on feed company's procurement management of raw materials in the supply chain. Through analyzing the quo of China's animal feed enterprises and feed market of raw material, we can find out the problems existing in the procurement of China's feed business. In order to help the feed business solve problems, and further stress that the feed business should apply procurement management in the supply chain, this paper proposed to build information management system and implement the JIT procurement and management approach. Then it analyzed enterprises' management of suppliers, the control of cost procurement in the supply chain, how to reduce procurement costs effectively and enhance the core competitiveness of enterprises. Finally, based on the previous theory, this paper took COFCO in Wuhan as an example, identified the disadvantages by analyzing the problems appeared in procurement, and put forward targeted recommendations for improvement and ideas. The results and suggestions of this paper are very useful for china's feed companies to procure and manage effectively in the supply chain.