Research On Improving The Procurement Strategy Of Siemens Mobile Group (icm) Strategy

As a very important point, strategic procurement is the direction of purchasing development in the management scope of modern enterprises. It is very important to the optimization of supply chain as well as the development of the company. The utilization of the strategic procurement in multinational company is occurred with the global development strategy, under the background of the integration of global economy.According to the analyses of the feature of traditional purchasing and the conversion of purchasing roles, we are introducing the concept of strategic procurement. The common understood principle and approach is the base of the implementation of strategic procurement. With the economy development, there are five kinds of strategic procurement trends occurred, which are E-procurement, strategic purchasing cost management, establish of strategic procurement frame, outsourcing management and developing global suppliers. In the meantime, we find that there are some problems existing in the procurement strategy of many enterprises.Siemens Information&Communication Mobile (Siemens ICM) is a well-know multinational telecom company. It is quite representative in its implementation of strategic procurement. And ICM Global Procurement has very strong power and foundation in this field. However, ICM meets drastic competition in the market at the moment, especially in the region of emerging market. This requires a continuous improvement on the tactic of strategic procurement to meet the request from the market. And it is also important for Global Procurement to take the value-added advantage to the company. The strategic procurement of ICM is presented as four aspects. They are TCO (Total Cost of Ownership) strategy, strengthening the power of purchasing negotiation, establishing the strategic partner relationship with suppliers, the consulting function of purchasing.But ICM GP has its weakness in terms of organization, procurement approach and procurement strategy. The challenge, which from the competition of communication market, the competitor of ICM and internal pressure of ICM, requires ICM to improve its strategic procurement tactic.According to SWOT analyses of ICM strategic procurement tactic in current situation, we summarize the tactics concentrated on four aspects, to improve the performance of ICM global procurement strategy. These advices may lead to a good contribution to ICM. For ICM, some of the advised tactics are under the processes of implementation; some of them haven't been started yet, for instance, making the alliance with competitors, improving the processes of new supplier introduction, enlarge of the cooperation with China local mobile phone manufacturers in terms of sourcing activities. The point is that we hope ICM couldperform the more flexible and innovative procurement strategy in purchasing management. This will impact on the increasing of market share and profit.To study Siemens ICM strategic procurement is a good approach to know and study the multinational company in this field. Well using strategic procurement tactic will directly impact on the result of ICM supply chain management and improve the performance of the business.