Research On Procurement Model Of China Telecom

Recently the telecom end user is asking more requesting for better quantity, faster speed, and more stability service in china, along with the rapid development of mobile communication technology, such as the emergence of4G networks, smartphones, intelligent terminals, especially the popularity of Apple’s products. At the meantime, the three major telecom operators are facing fierce competition in the telecom market, fast changing market, and short product life, which require operator to continuously improve product quality and service, and reduce the cost. Procurement is the source power for operator to complete the production and management objective; it can serve to improve the final product quality, reduce inventory investment, reduce unit costs, and improve the enterprise’s core competitiveness.The paper elicits the current procurement model through the introduction on theory of procurement and centralized procurement. This paper introduced China Telecom’s procurement case, analyzed and compared different purchasing model of the case, analyze that whether the optimized procurement model is able to bring some benefits to China Telecom through Boston matrix model.This paper studies the current three procurement model of Chinese telecom, analyzes the models in different subdivision, and summarizes the problems of current procurement model by comparison and analysis. According to these problems, the paper optimizes the procurement model in the last part, and improves the existing procurement model.Although this paper is a research on only one of the telecom operators in China, but it also can provide some guidance and experience for the other operators on purchasing management, to improve the efficiency of material procurement, to ensure the quality of engineering materials, thereby the telecom operator can increasing the economic efficiency and enhancing their competitive advantage in the market.