Research On Risk Management Of Procurement Consolidation Project In DFS

DFS is a Danish family company with a history of eighty years.Its products cover the fields of infrastructure,energy,food and climate.In addition to its patented products,DFS has maintained a leading position in the industry,and has been acquiring quality companies in related industries.Under this background,around the concept of "One DFS" and "continuous improvement",the company set up purchasing integration department.They lead procurement integration project in a wholly owned subsidiary company owned by DFS.Due to in different regions,different culture,different production processes,such projects always have some new risks during execution.These risks often result in little or no success.At the same time,DFS attaches great importance to the procurement integration business,so it values the completion rate of the procurement integration project.Therefore,studying the risk management of DFS's procurement integration project can further ensure the implementation effect of the procurement integration project and improve the management process of such projects.Through the research on the existing risk management methods,this paper finds that the current project risk management method is not sufficient to apply to the DFS procurement integration project.This paper adopts the traditional method of risk monitoring,and develops a set of four steps monitoring mechanism per the characteristics of DFS procurement integration project.Make the project management in the DFS company form a closed loop through "reasons analysis-strategy making-action setting-regular check" such four steps' mechanism.This mechanism makes easier to achieve the project objectives which is difficulty in the past.In another words,the goal of the project could be completed successfully or even exceeded by using this mechanism.In this paper,based on the characteristics of such projects,combining with the actual situation of DFS,using traditional methods to solve the risk control problems of such projects.1)the questionnaire survey was carried out to collect the risk,and the questionnaire was designed using the combination of structural questions and open questions.Make team members not only passive from the repository selection risk,but also can add non-common or unconventional risks per their own experience and knowledge.Therefore,common and special risks are fully collected in risk identification phase,2)the Delphi method is adopted to discriminate the identified risks.This can avoid some extreme or secondary risks occupying limited management resources.3)take the matrix method on risk assessment phase.The evaluation of risk in two-dimensional matrix is more convenient to communicate,reduces the deviation of understanding,and improves the efficiency of the interaction of different parameters.Use "chromatography.to make the risk level more visible,transparent,and the priority of risk management is clear.Regarding to the risk control,existing methods have not been detailed developed for the procurement integration project in DFS company.Therefore,the direct use of existing risk control methods is still not comprehensive enough to solve the risk control problems in such projects.In this paper,based on the DFS company procurement integration project risk factor analysis,to find this kind of risk source of the project,analysis the causes of the formation of risk,and then develop coping strategies for the cause of the risk formation.For the risk of taking preventive action or improvement actions,clearing the responsible of the action,setting the date of completion,and grasping the development of risks by regularly tracking progress.In addition,in order to ensure that different people in the process of implementation of risk monitor appears the deviation,also set up a regular check of the link,strengthen the interaction with the leadership,win support from the leadership timely when needed to get extra resources configuration,solve the problem of temporary or emergency.This is finally attributed to four steps' risk management mechanisms,including reasons analysis-strategy making-action setting-regular check.Through the real cases in DFS company procurement integration,this four steps'risk management mechanism "reasons analysis-strategy making-action setting-regular check" is validated as an effective risk control methods.It has played a positive role in the effect and efficiency of procurement integrated project in DFS company.It is not only has the project goal successfully achieved,but also achieved efficiency in the project management process.Therefore,this paper believes that the establishment of four steps' risk management mechanism is an effective way to solve the risk management problem of DFS procurement integration project.