global procurement focus€¦ · cflp national certificate ipscm certificate/ diploma (itc)...
TRANSCRIPT
Global Procurement focuson China. Is China ready?
Sunlei (CFLP)Sep.15,2006 Shanghai
AgendaAgendaAgenda
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Introduction of CFLP (China Federation of Logistics & Purchasing)
China becomes global procurement center
The difficulties Chinese companies faced
The efforts on creating better procurement environment in China
The implementation of China human resource strategy in purchasing & SCM
Introduction of CFLP Introduction of CFLP (China Federation of Logistics &(China Federation of Logistics & Purchasing)Purchasing)
China becomes global procurement center
The difficulties Chinese companies faced
The efforts on creating better procurement environment in China
The implementation of China human resource strategy in purchasing & SCM
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Introduction of CFLPIntroduction of CFLPChina Federation of Logistics & PurchasingChina Federation of Logistics & Purchasing
A national organization, its operation is under control of The State Development and Reform Commission
The representative of China of IFPSM
Set up National standard in logistics & purchasing felid
Issue China Logistics Development Annual Report
Issue Purchasing Manager Index monthly
More than 1000 enterprise members, about 3000 private members
Issued National Logistician Certificate to 40,000 people
Issued National Purchaser Certificate to 5,000 people
Have more than 150 local institutions around China
standards
Conference
economic legislation
China Federation of Logistic & China Federation of Logistic & Purchasing (CFLP)Purchasing (CFLP)
statistics
exhibitions
information Over 4000
Thousand members
The first social organization of logistics & Purchasing in China
investigationinvestigation
industry policy
consultationconsultation
foreign affairs
Logistician PurchaserITC International Certificate
China becomes global procurement center450 of fortune 500 companies have set up about 3000 companies in China
400,000 foreign companies have set up 500,000 companies in China
76% multinational company selected China as their preferred procurement base
Over 60 billion USD in total of multinational company procurement in China in year 2005
About 30 billon USD in total of retail group in fortune 500 companies procurement in China in year 2005
About 10 billon USD in total of automobile relating retail companies procurement in China in year 2005
• Problems in traditional Chinese procurement No enough information exchange between supplier and buyerHard to control quality and make sure delivery on timeNot a long term partnership between supplier and buyerSlow response to customer’s requirementsMotivated by benefit, under table, corruptionNo accurate information from production dep to purchasing dep. High inventory level and cash flow slow down
Physical flowsInformation flowsFinancial flows
Suppliers In company Customers
Supply chain management
• Problems in current situationSome companies satisfied with local marketLack of requirement info of multi national companiesKeep all company’s info as confidential infoDon’t know the international rules as a supplierDo not want to be controlled by buyersDelivered products are not as good as samplesLack of R&D abilities to adapt product modification
Physical flowsInformation flowsFinancial flows
Suppliers In company Customers
Supply chain management
The efforts on creating better procurement environment
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4567
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Credit Appraisal Reportwww.ccn86.comCommunity Credit Register Centrewww.21315.comChina Product Quality Associationwww.21315.org Shanghai government has set up a goal to
become a Global Procurement CenterSome big cities have set up export trade
platform with local government supportCreate green channel for export tradeEncourage multinational companies to set
up their global procurement center in chinaInternational procurement conference Set up company credit system from 2001Independent Credit Appraisal agents
The efforts on creating better procurement environment
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Micro level
Purchasing Organization: from decentralized to hybrid or centralized
Specialized commodity purchasing team: steal, coal, equipment, automation system, and chemicals.
Specialized PSM: material requirement, supplier management, price and cost analysis, inventory and logistic, and purchasing performance measurement
Purchaser Certificate
Average salary RMB3200/mBig Companies RMB7000/mMulti-National RMB150k~200K/y
Average salary RMB3200/mBig Companies RMB7000/mMulti-National RMB150k~200K/y
No purchasing major in university Purchaser
NationalStandard
IInternational nternational TTrade rade CCentreentre
UNCTAD/WTOUNCTAD/WTO((ITCITC))
ITC International CertificateITC International CertificateCFLP National CertificateCFLP National Certificate
IPSCM IPSCM Certificate/Certificate/
Diploma (ITC)Diploma (ITC)
Certificate
, 7,8 & 9
International Certificate
Purchaser Assistant
Advanced 证书
Advanced Certificate
Purchasers
International International DiplomaDiploma
Registered Registered PurchasersPurchasers
Registered Registered PurchasersPurchasers(CFLP)(CFLP)
Same Materials, Same Training, Two Certificates
Supple-mentary
modules
Evaluatingsupplyperform-ance12Managing
Inventory
11Managing int´llogistics 10
Managing the supply
contract9
Specifyingrequirements& planningsupply
2 Analysingsupply markets3
Developing supplystrategies4
Appraising & shortlistingsuppliers
5
Obtaining & selecting offers
6Preparing
the contract
8
Negotiating
7
Understandingthe Corporate Environment
1
14 14 -- Grouped Grouped purchasingpurchasing
13 13 -- EnvironmentalEnvironmentalP & SP & S
15 15 -- EE--procurementprocurement
OperationsOperationsManagementManagement
& others& others……
16 16 -- CRMCRM
ITC’s Modular Learning System (MLS)ITCITC’’s Modular Learning System s Modular Learning System (MLS)(MLS)on International Purchasing & Supply Managementon International Purchasing & Supply Management
There are 150 institutions in more than 200 citiesThere are 1 exam centres in each provinces and big citiesThere are 150 institutions in more than 200 citiesThere are 150 institutions in more than 200 citiesThere are 1 exam centres in each provinces and big citiesThere are 1 exam centres in each provinces and big cities
Training CentresTraining Centres4~5 4~5 big cities big cities 2~3 2~3 provinceprovince capitals capitals 1~2 1~2 medium citiesmedium cities
Exam CentresExam Centres11 Per Per provinceprovince11 Per big cityPer big city
China is one of the most important China is one of the most important contributor for global supply chaincontributor for global supply chain
----------MrMr Grimm, president of IFPSMGrimm, president of IFPSM
Thank You!Sun Lei
86-10-6839131086-13910268248
China Federation of Logistics and Purchasing