Research On The Centralized Procurement’s Motivation And Decision Of Large-scale Real Estate Enterprises

Along with the increasingly competitive in real estate industry, China’s real estatedevelopment enterprises gradually trend into the state of large-scale, cross-regional,forming high concentration development, and often run several or dozens projects.Therefore, the benefits of centralized procurement are playing a vital role in grabbingmarket share and enhancing core competitiveness. However, with the lacking of someresearches about the centralized procurement of large-scale real estate developmententerprises in the domestic and practice, it is hard to avoid existing many problems,especially the problem which “what materials and equipment should be included in thescope of centralized procurement” has plagued many large-scale real estatedevelopment enterprises. So, there is a practical significance to have a decision-makingresearch on the problem “what materials and equipment should be included in the scopeof centralized procurement” on the basis of the analysis which focuses on themotivations and problems of centralized procurement.Firstly, through literature research, the paper introduces the related theories, thecharacteristics and models of the centralized procurement, and focuses on thedifferences between the centralized procurement and decentralized procurement aboutthe large-scale real estate development enterprises, and notes that the procurement facesa number of challenges, but the traditional procurement way exists a number ofproblems, and on the basis of this, the paper analyses the motivations of large-scale realestate development enterprises to implement centralized procurement. Followed by this,on the basis of the analysis which focuses on the problems of centralized procurement,the paper has an in-depth study on the problem that what materials and equipmentshould be included in the scope of centralized procurement, and established a system ofcentralized procurement decisions-indicator, and bases on the analysis of the surveyresults, the paper uses AHP to determine the weight of each index, and applies the fuzzycomprehensive evaluation method to build a centralized procurement decision-makingmodel, Finally, The paper uses the decision-making model to decide some commonmaterials and equipment whether are suitable for centralized procurement or not inVanke.The following conclusions can be concluded from the paper: firstly, differentlarge-scale real estate development enterprises have different motivations of centralized procurement, in general, the motivations of centralized procurement include: brandmarketing, cost savings, standardize procurement, concentrate rights, excellent servicequality, internal information exchange, optimize the allocation of resources, betterproduct quality, and knowledge management; secondly, the elevator, paint, wall tiles,sanitary ware, anti-theft door are suitable for centralized procurement in Vanke based onthe decision-making model.