Abstract:

Supply network have great impact on the procurement andsupplier management. To maintain a reasonable structure and number of suppliersis one of the important directions of improving the modern enterprisemanagement. However, with the company's development and expansion of businessscope, there are many large companies have such problems that the number ofsuppliers is excessive and the management focus is not prominent, which isdifficult to achieve strategic procurement. Combined with previous studies,this paper is based on the purchasing portfolio matrices to establish aintegration solution of supply network----by reducing the number ofsuppliers, optimizing the supply network structure and selecting the strategicpartners, ultimately, the purpose of reducing management complexity andsupporting the strategic procurement is achieved. Finally, this paper shows theeffectiveness of integrated solutions through an example that integrates the supplierrelations of a large state-owned enterprise.

Key Words:Supply networkintegration solution; supply relationship; purchase strategy; purchasingportfolio matrices.

1. Introduction

Withthe continuous development of Supply Chain Management, the research ofcooperation between enterprises and suppliers is deepening. The companies ofowning advanced business management concepts have been able to achieve thebasic evaluation and classification management for suppliers. At the same time,however, many large manufacturing enterprises, especially state-ownedenterprises began facing some problems that the number of suppliers isexcessive and the management is more difficult than before because of theincreasing volume of business. In order to further develop strategicprocurement, establishing a supply network that maintains a reasonablestructure and number of suppliers is one of the important directions ofimproving the modern enterprise management.