Purchasing Risk Reseach Of TK Escalator Company

Due to the continuous development of the global economic integration, the externalenvironment of the manufacturing enterprises is facing unprecedented changes. Lifecycle of enterprise products is becoming shorter and shorter, but the varieties continueto grow rapidly, while customers’ requirements of lead time are increasingly demanding.On this occasion, only enterprises carry out horizontal cooperation with thosecompetitive enterprises to maximize the benefits of supply chain system, and implementstrategy of supply chain management, that can stand out in the changeable competitivemarket.Enterprises survive in the mode of horizontal integration management, are not onlyfacing to contact cooperative partners around the world, but facing the cost incurringwhich comes from the cost of supplier selection, supplier management costs, andlogistics costs. Moreover, enterprises are at risk in procurement chain, such as the risksof supplier management, logistics, inventory, lead time all will increase, and have adirect impact on the normal operation of enterprises. Under the circumstances offrequent fluctuations in the market demand, if there is not enough effective and feasiblemanagement mode, the “bullwhip effect” of each node in the supply chain would begradually enlarged, which can seriously affect the value of output of the entire supplychain. Therefore, there are higher requirements for the operation of the enterprise supplychain in new competitive market environment, and the reasonable control of theprocurement risk in an enterprise is the core competitiveness that cannot be ignored.This essay takes TK Escalator company as a research object, is based on theoreticalknowledge, using scientific analysis tools to achieve purposes of the study, which are,firstly, using application of risk management methods and analysis tools to give acomprehensive and systematic analysis of TK Escalator company’s supply chain systemand procurement process, understanding comprehensively and systematically thevarious types of risk of the procurement process, which including suppliers’ deliveryrisk, price risk, the risk of a single supplier, the risk of unexpected events, the risk ofprocurement plans, human resource risk, financial risks, contract risks and asymmetric information risk. Thereby, it can establish effective risk evaluation system and thedefinition of risk assessment standards, and finally to propose operational solutions andrecommendation.Basing on the main idea of risk identification, risk analysis, risk assessment and riskcontrol, the writer draw out a conclusion that in the current market environment, TKEscalator company how to deal with the occurrence risk, means by which to reduce thelevel of risk on the organization. Due to the lack of risk management information on asingle industry in the current procurement risk management research literature, thewriter hopes the research result of this article of TK Escalator procurement riskmanagement case studies, could apply to the entire Escalator industry, and proposeadvice for enterprises that facing procurement risk.