Entry Methods for Global Sourcing

China's traditional procurement model has six major problems: First, the procurement and supply sides are not effective information communication, blocking each other, is a typical non-information symmetric game process, procurement has become a blind behavior; Second, the inability to supplier product quality, delivery time for prior control, economic disputes; Third, the relationship between supply and demand is temporary or short-term cooperation, and more competition than cooperation; Fourth, the ability to respond to user demand is slow; Fifth, profit-driven, back-room operations, sacrificing the good for the second, sacrificing the cheap for the expensive, sacrificing the near for the far, is a hotbed of corruption; Sixth, the production sector is disconnected from the purchasing department, resulting in large inventories, taking up a lot of working capital.

Modern procurement model has six major advantages: First, it can expand the scope of supplier price comparison, improve procurement efficiency, reduce procurement costs. The second is to realize the openness of the procurement process. It is conducive to further publicize the procurement process, to achieve timely monitoring, so that procurement is more transparent and standardized. Thirdly, it realizes the proceduralization of procurement operation. Fourth, it is to promote the quantitative and scientific procurement management. Fifth, the realization of the production enterprises for the inventory and procurement to the order and procurement. Sixth, the realization of procurement management to external resource management change.

In particular, the use of e-commerce procurement, procurement for the procurement of an all-weather ultra-temporal procurement environment, that is, 365 × 24 procurement environment. It reduces procurement costs, simplifies the procurement process, greatly reduces enterprise inventory, and enables both sides of the procurement transaction to form a strategic partnership. E-commerce procurement can be said to be an enterprise's strategic management innovation, full of unlimited vitality.

The conversion of the enterprise procurement management mode is to change from purchasing for inventory to purchasing for orders, reducing inventory and accelerating the speed of flow; from the management of purchased goods to the management of suppliers, the establishment of strategic alliances, the formation of supply chain management; from the traditional procurement method to modern procurement methods to the principle of fairness, openness and impartiality, reducing procurement costs; procurement management from the enterprise's General issues are upgraded to strategic issues to improve enterprise resilience and competitiveness; optimize enterprise management resources, implement process reengineering, set up a unified purchasing department, and equip with a smart purchasing director. Global purchasing system is a kind of e-commerce procurement mode, and enterprises should be familiar with and master the e-commerce procurement mode in order to enter the global purchasing system. The emergence and development of e-commerce and logistics and procurement activities are closely related. The emergence of e-commerce has led to a fundamental change in the traditional procurement model. In the modern market economy, there are three procurement methods can enter the e-commerce, namely, government procurement, corporate procurement and personal procurement. It doesn't matter whether it is B2B (business-to-business), B2C (business-to-consumer) or C2C (consumer-to-consumer), and it doesn't matter whether it is international or domestic.

Payment system; 3) import and export trade customs clearance system; 4) modern logistics system. Evaluation of suppliers is mainly four aspects of price, quality, delivery and service. In addition, it is also necessary to assess the environment of the supplier's location, which is often referred to as the four basic elements of cross-border sourcing, namely, the flow of value, the flow of services, the flow of information and financial flows.

For example, the Metro multinational chain group has put forward how to become its suppliers of the four basic requirements, namely: First, must have a sound supply system and commodity licenses. The second is fair and ethical trade (reliable commodity supply, commodity quality assurance, and commitment to long-term business development). Third, merchandise distribution capability (ability to transport merchandise to designated shopping malls and willingness to use designated logistics companies). Fourth, merchandise specifications that meet Metro's requirements (quality assurance, reasonable pricing, unique style, and support for advertising and promotional activities).

At the same time, Metro also gives back to the supplier four benefits: First, *** with the improvement of the packaging, appearance and quality standards of the supplier's goods; Second, to help the supplier's products to enter the national and international markets; Third, a win-win partnership; and Fourth, to respect the legitimate brand rights of manufacturers. Taking IBM as an example, IBM has a history of 90 years, annual sales revenue of more than 90 billion U.S. dollars, with 300,000 employees around the world. 2001 global procurement amounted to 4.5 billion U.S. dollars. IBM puts forward five major elements of procurement: First, to continue to provide a cost-effective and competitive advantage of the procurement system. The second is to establish and maintain a comprehensive supplier network. The third is to creatively develop and utilize e-procurement systems to ensure global leadership. Focusing on improving customer service standards. Fifth, to attract and cultivate first-class procurement professionals.

IBM insists on taking procurement as the core to drive the financial and logistics system. There are four recognized procurement laws in the world, i.e., United Nations Model Procurement Law, WTO Government Procurement Agreement, EU Procurement Directive, and World Bank Procurement Guidelines. When joining the WTO, the Chinese government did not participate in the WTO Government Procurement Agreement. However, the Chinese government is committed to opening the government procurement market in China to APEC members by 2020. UN procurement, and international procurement between enterprises are conducted according to the rules of the game.

The United Nations procurement, for example, amounted to US$3 billion in 1998, US$4 billion in 2000, US$5 billion in 2001 and US$10 billion in 2002. The scope of procurement covers a wide range of areas, including transportation vehicles, air charter services, communications equipment, office supplies, telephones and software, professional instruments, various types of tools, disaster relief supplies, medical equipment, agricultural products, food, medicines, and services. In the era of economic globalization and information technology, the comprehensive quality of enterprises is mainly concentrated in five aspects: time (T), quality (Q), cost (C), service (S) and flexibility (F). "Time" here refers to the speed of response to the market. However, the realization of these five points depends mainly on the quality of the entrepreneur. In a certain environment, a dynamic and creative entrepreneur decides everything. Haier is a typical example, Haier as a production enterprise, on the one hand, the establishment of a global procurement system, but their own products are also included in the global procurement system by many enterprises. And make itself into a virtuous cycle. This is inseparable from the entrepreneurial team with Zhang Ruimin as the core. Haier Group has been carrying out process reengineering since 1998, set up logistics promotion headquarters, implemented unified centralized procurement, procurement staff from more than 1,000 people to more than 100 people, suppliers from 2,336 to 840 optimization, in 2002, 44 of the world's top 500 are Haier's suppliers. With the change of procurement system, the procurement cost dropped by 500 million in 1999, 700 million in 2001, and 1 billion in 2002. At the same time, many of Haier's products are purchased by many multinational wholesalers and retailers and enter the global market.