Discussion On Supply Chain Coordination Mechanism Of Central A Procurement Demand

Supply Chain Management is a theory and philosophy which developed under condidtion of modern technology and when product supply becomes very abundant. It is involved in all aspects of business management, it means business partners should work together to win the maximization their common interests.Supply Chain Collaboration is theme for this paper. We will take multinational telecommunications equipment manufacturer A as an example, to discuss how to adjust supply chain management strategy, to fulfill need from telecommunication industry centralized purchasing; especially how to use supply chain collaboration, to reform organization, process and tools, with using the theory of Supply Chain Collaboration, Product Lifecycle Management and Theory of Constrains. By developing an timely response and proactive adjustment supply chain collaboration system, it can secure the fulfillment for customer need and gain market share.At first, this paper explains the theories of Supply Chain Management, Supply Chain Collaboration, and proposed to use it together with the theory of Product Life Cycle Management and the Theory of Constraints.Then, combined with the history of telecommunications industry, introduced company A’s situation. Today, telecommunications industry has become a relatively mature market, and competition is increasing, Central Purchasing has brought new challenges to supply chain management:First. High uncertainty of demand causes fluctuations in supply chain; Second, the rapid upgrading of products impacts timely supply; Third, demand outbreak and significant fluctuations leads to in supply constrain.Competition in the supply chain becomes an important determinant of competitiveness, and current company A’s supply chain management system has been unable to meet new requirements, must be improved. For this situation, this paper tries to give out goals and solutions how to set up supply chain collaboration to fulfill centralized purchasing model need, through the establishment of Task Force Team; set up supply chain information-sharing platform, and also using theories of Product Lifecycle Management and Theory of Constraints to optimize supply chain system.The significance of this study is to discuss that in circumstances of centralized procurement, when demand forecasts cannot be provided or provided with a high un-accuracy, products upgrades very fast, and outbreak demand causes resource constrains, how to set up a right supply chain collaboration system to suit for the new situation and win the success of centralized procurement fulfillment. This is a way to summarize, consolidate and optimize the organization’s knowledge and wisdom. This system’s set up is also a good example for the company, how to manage supply chain in a better way, increases the value chain and enhance company’s core competition, the method used in this paper, can also be kept and continuously optimized in the future.This process can be taken as a good reference for supply chain management operation, for not only telecommunications industry but also other industries in the face of Centralized Purchasing needs, or when they meet important large-scale need which is un-predictable or fluctuate.