Research On The Procurement Risks Management Of Retailers Based On "Direct Link Between Farmers And Supermarkets" Model

With the increasing development of China’s marketing economy as well asAgricultural Marketization, the contradiction between agricultural production andcirculation began to emerge. Too many links and high costs in the traditionalcirculation way of agricultural products that threatened the safety of them, alsorestricted the development of China’s Agricultural Economy.Agricultural products circulation model "Direct Link between farmers andsupermarkets" has a long history of development in Western developed countriesalthough it’s fresh new in China. Intermediate circulation links and costs ofagricultural products would be reduced effectively when this model is carried out, itcan also strengthen the monitoring of circulation process and guarantee the safety ofChina’s agricultural products supply chain.Farmer would easily get the marketinformation and know the agricultural market better under this model, it enable themto adjust the production plan timely and meet the requirements of marketingdevelopment."Direct Link between Farmers and Supermarkets" model is still a relatively newconcept and in the pilot stage of promotion, the majority of scholars have studied themodel from angles of "concept definition "and "utility analysis of the model", but fewof them researched on the problems existed in its practical implementation. This papertakes retail enterprises’ procurement risks based on "Direct Link between Farmers andSupermarkets" model as research object, find the risk trigger points through analysisof retail enterprises’ procurement process based on this model. Divide the risk factors(based on its occurring range) into three categories: internal management,procurement process and macro environment.Build a comprehensive risk assessmentsystem with a combination of qualitative and quantitative analysis. In this dissertation:Firstly, several risk assessment experts would complete a questionnaire aboutqualitative analysis of various risks; Secondly, Triangular Fuzzy Numbers would beused to transfer qualitative analysis into mathematics language, and then sort the risksbased on the results; Finally, relative risk prevention recommendations would beprovided according to the outcome of risk sorting.