SF Chemical Company’s Procurement Strategy Optimization And Implementation

Since the beginning of the21st century, with the development of scientific andglobal economic integration, the market competition in the various industries areshowing significant informationalization, high-speed and internationalization so thatenterprises are facing more severe competitive market environment. The rapidgeneration of large amounts of information, the extensive application of high-tech, thediversity and personalization of user needs which require enterprises to make accurate,rapid and effective response, or they will be weeded out by the market. The competitionbetween enterprises becomes a competition between efficiency, cost and supply chain.Procurement is the most important part of the supply chain, so more and moreenterprises pay great attention to the management of procurement. They optimizeprocurement processes procurement practices and improve procurement strategies toraise the competitiveness of enterprises.SF Chemical Company is a private enterprise specializing in chemical rawmaterials, since its foundation in1993, the business has been in a rapid growth.Throughout the company’s entire business, there are big problems in terms of rawmaterial procurement management to optimize urgently. Therefore, the study will takeSF Chemical Company as the research object. Firstly the paper will analyze the marketenvironment of SF Chemical Company and the characteristics of the Japanese chemicalindustry which SF Chemical Company belongs to. Then the study will make a deepanalysis of SF Chemical Company including its problems in procurement method,procurement process, procurement management system and vendor selection. On thebasis of that, the study puts forward optimization objectives, principles and processsolutions to raw material procurement strategy of SF Chemical Company and introducesthe optimized procurement strategy. Finally, the study discusses the supportingmeasures, including the construction and implementation of procurement managementsystem, vendor selection, specific measures for implementation and supervisionprocesses to ensure the SF Chemical Company’s raw material optimized procurementstrategy to be realized.The results of this study will give guidance to SF Chemical Company’sprocurement and also it will give a reference value to companies similar to it.