Purchasing Management

1.0. Introduction

COSCO Container Line Ltd. is one of the famous container shipping company around the world. It is a state-owned business in China. COSCON owns 150 container ships more than 500,000 TEUS which established in near one hundred routs in about 50 countries and regions. Operating more than 82 international shipping routes connecting near 140 principal ports in over 50 countries and regions around the world (Gregory & Jukes, 2001). The firm weave an enormous worldwide container service network. It has been contains of more than 400 service and selling points. For the sake of adapting international logistics development and provide high-level performance, adding value information services to it consumers, COSCO Container Lines Ltd. needed to establish a global standard centralized container management system that would make the rapid circulation of information worldwide fast and efficient.

Firstly, this essay provides an analysis of the purchasing organizational structure and quality management. Then, by using centralized procurement apply on real case of COSCO Container Lines Ltd and evaluate the quality management system.

Traditionally, enterprises have faced two primary options for organizing procurement operations, it can be categorized as Centralize in one extreme and Decentralized in another extreme. On the other hand, hybrid structures are the combination of centralized and decentralized procurement.

2. 0. Centralized Purchasing

Comparing with traditional procurement mode, centralized purchasing can better meet the needs of large enterprise group. Especially, centralized purchasing at headquarter level can bring tremendous advantage to the business. Under the strategy of centralized procurement, for the sake of avoiding duplication all materials purchased by the purchasing department (Jim, 2012). A firm has to follow the strategy of centralized procurement for making sure that all materials control as well as efficient store keeping....