Purchasing Strategy Of CCB In Sichuan And Purchasing Risk Management

With the continuous development of China’s reform and open policy, social andeconomic progress, more enterprises globalized gradually and the procurement isessential for all different industries. Procurement is the starting point for the productionand operation of enterprises, it is not only the important part of the ‘actual logistics’, butalso has the close relationship with the ‘fund flow’. For financial companies, especiallybanks, their traditional business are mainly divided into those following aspects,deposits, loans, wealth management, credit cards and others. Similarly, as one of thefour state-owned commercial banks in China, Construction Bank, procurement is not itscore business, but the quality and price of its purchase, supplier selection, procurementcontracts formation, transportation of materials, acceptance and other supply chaincondition largely determine the survival and sustainable development of enterprise, andCCB’s procurement is involved in the production processes of goods and services.China Construction Bank listed on the Hong Kong Stock Exchange and ShanghaiStock Exchange in2005and2007respectively and the business has becomeincreasingly standardized. Internal procurement projects and procurement process of thebank changes from disordered to normative. This study focuses on the current status ofConstruction Bank’s procurement, and analyzes the existing problems and risks ofpurchasing policy, then through the theory of supply chain management methods, andintegrated with cases to analyze the current procurement condition and to propose aseries of solutions and corrective measures. For example, to control supply risks bystrengthen the dynamic management of the suppliers, then to establish the various rangeof scientific criteria for assessment, in order to strengthen the management of theacceptance and ensure the quality of the procurement of goods, after that, to createstandard forms and to avoid contract risks by the professional review of legaldepartment, meanwhile, to optimize payment method, and carefully check and reviewbefore the payment in order to avoid the problems that may occur in the paymentprocess, lastly, to control moral hazard of buyer by the system and position restriction.