?The successful completion of Procurement Plan Competition

From the establishment of Shanghai Tenry Pharmaceutical, all the factory operated their own procurement function individually, so in order to improve procurement procedure, save cost and increase efficiency at the same time, the company gathered all the independent procurement together and established Procurement Operation Department which will directly belong to industrial sector at beginning of this year. Meanwhile, in order to help procurement professionals and related management administrators unify procurement operation management theory, and acquire the skill and method of procurement standard process enhancement, cost control, procurement negotiation, and supply chain management, the leadership discussed to appoint Human Resource Department to organize a two days’ procurement management skill training in Shanghai during July 27 & 28 and also a meaningful Procurement Plan Competition after the training.

 

Procurement Management Skill Training:

This training specially invites Professor Chen Xiaozhi, the professional consultant of third party training institution Bai Shi Rui to prepare and give the lessons. Firstly, Professor Chen rebuilt SCOR model (contains two dimension procedure and system, the front end focus on centralized decision making and the back end focus on separated operation) for the relationship between procurement and supply chain, based on the external competitive environment change faced by currently enterprise’s supply chain. Professor Chen indicated that the requirement for procurement related professionals is more and more dissociating from numerous and disorderly activities to focus on handling strategic works and managing relationship with vendors, thus to realize procurement management work’s core value to the entire enterprise.

Next, the lesson spreads from the below two core contents:

Win-win procurement negotiation skillFocusing on procurement negotiation’s three major thinking (bargaining chip thinking, arrangement thinking, and reverse thinking) and five cores (look, ask, speck, listen, and answer), selective analysis the soft and hard chips during procurement negotiation, the build of negotiation team (the cooperation between the main negotiator and the second hand), objective setting (Must, Want & Give), negotiation process and scenes design, and the related negotiation strategy, skill and technology.

Focusing on the six major categories of supply chain management (development, assessment, management, evaluation, education, and rewards & punishment) and express the vendor relationship management’s inquartation (leveraged style, strategic style, bottleneck style and standard style) as well as management strategic 4 words policy (sort, reduce, develop, and support), it requires administrator to choose the different management method based on different vendor relationship, different producing strategy and different style, and Professor Chen also emphases on the copying strategy towards strong style vendor.

During the whole training, we saw Professor Chen’s passionate speech and the tight class schedule. On every part, Professor Chen uses specific examples, theory explanation, detailed exercise, group discussion, lecturer review and other methods to help students more clearly master the systematic content and logic.

 

There are total 25 students attended this training as well as all the leadership of industrial sector. During the whole course, all the students invest themselves fully in learning and fully demonstrated their learning enthusiasm and positivity. Each team member continuously strengthens their knowledge system during every practice, expression, analysis, and conclusion. After the class end, all the students show their strong wish to have more and more this kind of training in the future, which can truly help them solve problems during the daily working and help them to process their work better and better.

Procurement Plan Competition

After the training, all the students divided into four project plan design teams, each member plan different role in the team and advanced project process according to the time slots. After a month of intense preparation, all the team members put their heads together to complete their own project plan.

On Sep 14, the final Q&A session of procurement plan competition officially start which contains on-line and off-line parts. On-line part is held by Professor Chen, including front-end plan design and back-end project indication, Professor Chen gave professional evaluation and feedback to each team. About the off-line part, we invited Mr, Wei Chunming, the vice presidnet of industrial section, Mr. Tang Zaocan, the head of Tenry Factory, Mr. Wei Jianguo, the head of Qingping Factory, Ms. Wu Hua, the director of procurement operation center, and Mr. Jing Tao, the vice director of procurement operation center to be the judge. The judges would give the general score basing on project integrality, project innovativeness, project maneuverability and the other two dimensionalities.

On the competition site, all the teams demonstrate their own project. After the demonstration, the judging panel and the distinguished guest ask questions about the project, and then the project members provide the supplement about the project details based on the questions, at last the judging panel give the final score.

The most amazing part is that the four plans we designed basing on vendor basic information system, procurement and vendor evaluation procedure, cost saving and strategic management towards strong attitude vendor can be used to deal with the current and future problems faced by our company. The judging panel provides their own unbiased advice and suggestion and there is no double that these four plan’s execution will bring profound influence on the company.

 

Mr. Wei indicate that he hopes everyone can continue put their head together to add more details to four projects, which can provide practical value to company’s supply chain management process enhancement and cost saving. Let’s get started to carding basic supply chain piece by piece, improving out supply chain system step by step, and devoting our own efforts to Tenry’s future.