Study Of Corporate Procurement Management Model Supply Chain Management Perspective

Enterprises are getting into more and more competitive environment after China opened the doors to worldwide and entered WTO. Due to huge similar products and service entering into the market, it is getting more challenge for a company to keep high marginal contribution. How to keep enterprises in the sustainable competitive position in term of profitable and market share? Beside innovation and renovation of their products and service, more and more enterprises are realizing that they do need improve management system. Enterprises management covers too many sections and functions, this paper approach to study procurement management models under structure of supply chain management. As well knew, procurement includes many functions like: recruitment, raw material and products, production equipment or office tools, renting equipment or hiring third parties'service and etc. This paper is only focusing raw material or products, which are proposing to further produce or sell.Many enterprises were trying to rationalize their supply chain management system. Even though, some of them were failure and some of them were successful, but the most of enterprises do not take procurement management into structure of supply chain management. It causes following problems: the managements are not take procurement seriously; squeezing supply marginal contribution; there are non acceptable communication way and effective disciplines; comparably higher procurement cost and waste; low procurement efficiency and under table business terms. Since such problems are not easily terminate and these are damage company sustainable healthy growth, how input procurement management into structure of enterprises management is becoming a very interesting topic.Based on the daily working experiences and observes and learning from books, I put my ideas into'Under Supply Chain Management Structure, Study of Procurement Models'. It is trying to explain two parts: one is to explain reasons to switch procurement management to a modern and reasonable models; the other part is to propose possible procurement models and encouragement / discipline management. It may help company to find potential profits and avoid wastes.The other important of this paper is showing total procurement cost in the first time, which will help people to make a reasonable decision in procurement process. The total cost includes: headcount, enquiry and suppliers sorting, supply confirmation, contracting, storage and transportation, quality, risks, change suppliers, new products development, timing, communication maintenance, management and etc.