Procurement Risk Management Of Engineering Project In Supply Chain For F Company

Supply chain management is the strategy to win and keep the advantage in today's competitive global environment for any business organization. The business is becoming more risky nowadays because of the increasing of use of outsourcing, globalization of supply chains and shorter product life-cycle which make supply chain more complicated and sensitive than ever before.Company's survival and competitive ability is more and more replying on key suppliers in supply chain, due to the dynamic business environment caused by complexity of products and services, global trade, shorter product life-cycle, more none core business outsourcing etc.The company of which business is mainly project oriented is facing the essential characteristic of engineering project: complexity, expertise technique, wide rage involvement. The process of project execution is filled with all kinds of uncertainties, in addition ever-changing economics\socialature environments is leading to worse consequence. All is forcing project oriented business company to pursuit for enhanced risk management in supply chain.Procurement is important process of project management and supply chain management, procurement risk management is key to the reduction of the waste in procurement, minimization of purchasing costs for prod ucts and services and improvement of efficiency. Thru efficient risk management in procurement, reduces the negative influences caused by uncertainties, helps project execution going forward smoothly, meets or exceeds the requests and expectations of all project related stakeholders. Effective procurement risk management is helping company build up supply chain on more safety basis, raise the execution efficiency under supply chain management, prevent potential risk caused by uncertainty, promote the advantage of core business competitiveness.The article mainly takes F company as the object of research, based on the theories of project & risk management, supply chain risk management and procurement risk management, combining with the actual situation of t he business nature. Firstly, the article analyzes the business quo, type and characteristics, main processes of project risk and procurement risk management. Finding and discussing on the existing problems in risk management. Secondly, following the 5 steps of risk management: planning, recognition, assessment, coping, monitoring to raise the improvement plan and solution. Thirdly, fish-bone diagram, analytical hierarchy process, risk matrix are used for procurement risk planning, recognition and assessment in both qualitative and quantitative methods, setting up project procurement risk modeling and weight of the risk elements. Fourth, risk coping and monitoring solution is drafted against risks identified, improved company risk management process is set up for prevention of risk happening from the source.The study on project procurement risk management for F company is expected to have certain reference significance in helping companies with similar business type in improvement of risk management, performance and competitiveness.