Vendor Selection And Risk Management In International Procurement

As the development of the economic globalization and the global supply chain, many companies tend to expand their business abroad and start to search for business opportunities globally with the aim optimizing their resources in the whole world. In this process, international procurement has played a very important role. However, there are great differences between international procurement and that of domestic especially in the field of suppliers’ evaluation and selection and procurement risks. From the perspective of the procurement enterprise in China, this article analyzed the supplier evaluation index system and evaluation methods of international procurement, and described the international procurement risks , then carried out the corresponding measures of risk aversion. This article mainly includes contents as following:1. Review of international procurementThis paper carried out the concept of international procurement, and analyzed its characteristics compared with that of domestic; followed by detailed analysis of the reasons and types of the international procurement; and then carried on the international procurement trend analysis on the base of analyzing the status of international procurement.2. Vendor evaluation and selection in international procurementFirst this paper analyzed the steps and the index system of vendor evaluation and selection in international procurement; Finally, several commonly used methods of vendor selection were carried to educed out the FPN methods which is used in this paper to evaluate the vendor in international procurement, and finally provided the process and an simulation examples of vendor selection with FPN.3. International procurement risk managementFirst of all, this paper analyzed the sources of the risk of international procurement followed by the type of the international procurement risk; then carried out the method of risk evaluation with Data Envelopment Analysis (DEA); finally the corresponding measures of risk aversion was carried out in accordance with the risk categories.