Research On Global Procurement Strategy Of AAL Group

Along with the development of economic globalization, the global economies will be interconnected more and more tightly. It has been a vital issue that how to establish the effective supply chain and make use of the economic globalization and international resource to enhance competitiveness for a company. There is no doubt that global sourcing strategy is one of the most effective ways to use international resource during the process of expansion. The volume of global sourcing is surging in an incredible speed. According to the statistic conducted by WTO, there are approximate30%of the goods in the world have been transported across the custom which show the fact that these goods were purchase from overseas suppliers or sold abroad or mutual trade.AAL Group is a Marine Boiler producer, the raw material takes over70%part of the total production cost, during the improvement of cost based competition, it requires company to reduce the produce cost, therefore, the global procurement center was established at2007, and The paper will based on AAL group global procurement center Shanghai office procurement strategy research, describe its business structure, the supply chain management system, include supplier management strategy, supplier selection, supplier relationship management, supplier performance management, supplier evaluation and control. And end up with the improvement of supplier management plan and risk prevention suggestions.