A Study On Synergy Buying Practice In ABC Company

This article makes analysis on Chinese food industry condition, food safety andcompetitiveness in market are the main problem and challenge in food industry. With thedramatic increase of food safety case in the recent years, it’s extremely urgent for foodcompany to decide how to meet these challenges. To solve these problems, the mainsolution is manage procurement and ensure material safety, while in this condition, it willcause cost rise. How to control cost and keep competitiveness, we need to achieve thisthrough procurement, synergy buying is a good way to lower cost and optimize supplychain. While, to launch synergy buying equals to a big reform in corporate, will impactinterest of external suppliers, and will exert influence on internal department and staff, sothere are a lot difficulties and barriers, containing big failure riskThe core topic of this article is how Chinese big food company to implement synergybuying through the case study of ABC food&beverage (China).This article analyzes ABC food company’s current condition and point out the necessity ofsynergy buying for the company. The article elaborates the detailed action plan of synergybuying. In the preparation phase of synergy buying, stakeholder analysis andcommunication plan is introduced to act as a measure to unify idea and action, and in thisstage, procurement strategy analysis is also worked out. In the implement phase,negotiation strategy is introduced to guarantee good result of cost and supply cooperation,suitable bidding tool is chosen and standard contract template is unified in this stage aswell. In the follow up phase, also make supply chain optimization, level up supplier KPI,introduce supplier social responsibility and ensure green and safe food supply.The research and study indicate, synergy buying through careful planning is workablein food industry. The study of synergy buying in this article also can be extended to otherindustries...