Research On The Improvement Of T Company’s Supplier Chain Procurement Management

The financial crisis triggered by the U.S subprime mortgage crisis was sweeping theglobe; the world real economy was seriously hit. The domestic demand of US, Europe,Japan and other developed countries and regions declined significantly, thereafter thedemand for Chinese products also dropped rapidly. China, as a country who has highdependence on external demand, and years in trade surplus, was impacted greatly by thefinancial crisis, especially those foreign trade-oriented enterprises. T company is amultinational EMS (electronic manufacturing service2) company,65%of our productswere exported, and therefore we are not being able to escape from the financial crisis either.Substantial decline in customer demand, great reduction in purchasing orders, continuousincreasing of management cost etc… In order to help the company survive from financialcrisis, more pressure was put on the supplier chain. How to further reduce the material cost,improve the cash flow, control the supplier chain risk, improve the profit of company?Supplier chain management is facing the new challenges. So the research of supply chainmanagement is of great importance and value.In such a background, we select the paper subject of procurement management tostudy the multinational EMS company T company as the sample, as per the currentoperation of the manufacturing process, in direction of the purchasing management andsupply chain theories, to analyze its inner-outer circumstance by SWOT method to clearlyverify its competitive position, the structure of supply chain and operating cost of Tcompany, it defines the key position of purchasing management and impels thecompetition of supply chain which is centralized by T company itself. In aiming at the problems of T company purchasing management, we use Quantitative and Qualitativemethods of analysis, emphasize the aspects as supplier chain risk control, inventoryreduction, quick response and reduce the delivery cost. The paper put forward three tactics(supplier management, purchasing process management and inventory management) toenhance the company’s competitive position.