Optimization Of Procurement Management Of EPC Project At TS Group

As a new construction mode,EPC can speed up the production progress,solve financial problems,and guarantee the construction quality and design requirements.However,since the EPC project in our country has not been in operation for a long time and does not have experience,a lot of problems emerges when it runs,especially scheduling problems and financial problems.The key of solving these problems is to control costs,and the key to cost control is procurement management.Procurement management is one of the one of the key steps in the whole process of the construction.How to achieve reasonable procurement? The point is to standardize procurement management and control procurement costs to ensure the project’s quality,effect and time limit.Therefore,the optimization of procurement management of the EPC project is of great significance to guarantee the smooth running of the whole project.This paper focuses on procurement management of EPC project of TS Group,and more particularly,on the optimization of procurement management.Based on the current situation of procurement management of EPC project of TS Group,this paper analyzes its problems and puts forwards optimization strategies by adopting the theoretical research method,the practical research method,the quantitative analysis method,the field investigation method and the life cycle method.Firstly,this paper introduces basic theories of procurement management,including procurement process management theories,procurement cost management theories,and it defines the concepts of procurement,procurement management and whole life cycle.Secondly,this paper analyzes the current situation and existing problems of procurement management of EPC project of TS Group,and it concludes that there are many problems such as long procurement process flow,high procurement costs,high procurement risks and long production cycle.The causes of these problems can be traced back to two aspects: the shortage of procurement management system in TS Group and the lack of supplier management system in TS Group.Finally,this paper proposes strategies of the optimization of procurement management of TS Group.The optimization must start from the optimization of internal management and external management.Internally,the optimization requires the improvement of the internal procurement management system,including establishing centralized procurement implementation teams,optimizing procurement process,informationizing procurement,and establishing procurement risk assessment and prevention mechanism.Externally,the optimization requires the improvement of the supplier management system,including clarifying the supplier classification,exploring supplier resources and establishing the evaluation system of the supplier performance management.This research will help to improve the level of the procurement management of EPC project of TS Group and guarantee the smooth running of it.Consequently,it will help to enhance the whole competitiveness of TS Group.Although the research of this paper aims at the TS Group,the research results offer important lessons for the optimization of procurement management of similar EPC projects.