Research On Supplier Management System In Invited Bidding Procurement Model About Petrochemical Storage Project

As a wholly-owned subsidiary mainly engaged in international business ofstate-owned energy corporation, CIE lacks project construction experience. SupplierManagement has just started. It appeared bidders varies greatly, false bidding, productquality and duration cannot be guaranteed in the petrochemical storage projectprocurement. The reason is the lack of its supplier management. Therefore, thepurpose of this paper is building supplier management system, enhancing themanagement level, optimizing management scheme.In this paper, literature research, investigation, observation, case studies andother methods are applied. The author conduct in-depth survey of CIE’spetrochemical storage projects through use of supplier management theories gatheredin China and abroad for reference, and collecting materials from procurement work.On the basis of full analysis of status and feature of CIE’s supplier management, thepaper mentioned CIE often choose invited bidding as the main procurement methods.CIE has the base of supplier management, and also has supplier resource. This paperselects two cases of purchasing by invitation to bid to study, summarizing threeexisting problems, which is supplier manager’s own problems, problems in respect ofsupplier database, issues on supplier’s access and assessment. To solve theseproblems, in combination of supplier management theory and author’s practicalexperience, this paper presents three improvement scheme specially for CIE’s suppliermanagement in petrochemical storage projects from three aspects, supplier manager,supplier, management method. Firstly, to build efficient supplier management teamwith collaboration, clear responsibilities and rights. Secondly, to create a supplierdatabase with full archival information and management through classification andgrading. Thirdly, to establish a system of supplier access and assessment which isclear in procedure and evaluation. After verification of the program in procurementpractices, supplier management more orderly, the qualification of bidders improved,suppliers strengthen self-discipline. The product quality and duration better ensured.