1.

Procurement Model
As the giant of American retail sales, Wal-Mart's efficient procurement system is indispensable.
Wal-Mart’s centralized procurement in the European and American markets has achieved great
results, but the actual situation in China does not provide a good environment for centralized
procurement. Therefore, Wal-Mart began to implement local procurement in Shanghai instead of
having the same delivery center set up. Each authorized purchasing unit is directly responsible for
its affiliated branch, which is conducive to improving purchasing performance.
 Combination of centralized procurement and partial decentralized procurement
Similar to the situation of Wal-Mart, STS is currently encountering the problem of excessively
high centralized procurement costs. It needs to combine organizational forms with decentralized
procurement and make arrangements to adapt to it. STS can carry out partial decentralized
procurement under the premise of centralized procurement, that is, a unified procurement
organization has headquarters and divisions. First, classify the product (category management).
Bulk or mass items, high unit price or high total price items can be purchased in regular large
quantities and take advantage of large economies of scale, such as computers, projectors, etc.
Small batches, single-piece, low-value, fast-circulating items with a small expenditure in the total
cost, can be authorized to the procurement division to carry out according to the needs of each
branch school.
In this way, the advantages of the economies of scale of centralized procurement can be brought
into full play, the resource advantages of various local points will also be fully utilized.
Transportation frequency can be reduced, and items can be purchased at any time according to
demand with greater flexibility and adaptability.
 Cooperation with third-party logistics companies:
Wal-Mart has a set of advanced logistics system, relying on the core competitiveness of efficient
logistics and supply chain management system as a global sales terminal giant. As an educational
institution, although STS cannot build its own logistics distribution center, it can learn from Wal-
Mart's logistics distribution operation system and delegate the distributed procurement to a third-
party logistics company. This can not only save the cost of STS distribution, but also improve
efficiency and timeliness as well as meet the needs of local schools.

2. Personnel Structure
 Procurement staff should have professional skills to ensure the professionalism of
procurement.
Walmart has set up a special procurement organization and full-time procurement staff and
implemented a hierarchical responsibility system in which personnel in different positions are
responsible for different job duties. At the same time, purchasing personnel are required to have
high quality and comprehensive ability, and have purchasing-related purchasing ability
certificates.
STS should clarify the responsibilities of procurement personnel in each position, divide the
functions of administrative personnel and procurement personnel, and clarify their respective
goals. At the same time, improve the professional skills of procurement staff, requiring employees
to be able to deal with all aspects of procurement skillfully, write purchase orders according to
specifications, have certain negotiation skills, and improve work efficiency. And strengthen the
performance assessment of personnel to ensure the professionalism of procurement.
3. Contract management
 Strengthen the management of the signing of procurement contracts.
Before signing the contract, company should carefully study the market needs and sources of
goods, grasp the operation of the enterprise, inventory and the situation of the other party to the
contract, and collect information in all aspects based on the purchase and sale tasks of the
enterprise to provide the information basis for signing the contract and determining the terms of
the contract.
Establish contract management institutions and management systems to identify problems, take
measures, deal with breaches, make claims, resolve disputes and ensure the performance of the
contract in a timely manner. At the same time, it can strengthen the contact with the other party of
the contract and close collaboration between the two parties to facilitate the realization of the
contract.

4. Supplier Management
In the process of managing supplier partnerships, Wal-Mart emphasizes the establishment of stable
and win-win strategic partnerships with suppliers, which greatly reduces procurement costs and
communication costs. Therefore, in terms of supplier management, STS can learn from Wal-Mart
and implement supplier group management to try to achieve seamless connection with suppliers
 Supplier qualification: carry out strict qualification certification on suppliers.
Develop a complete supplier's performance appraisal system, and conduct a comprehensive
inspection from the supplier's production scale, financial strength, product quality, credit status,
and timeliness of supply to ensure a stable source of supply.
 Supplier segmentation: rank the suppliers and adopt different management policies for
different suppliers.
For example, provide a series of preferential policies for excellent suppliers to motivate other
suppliers to achieve better performance levels; qualified or low-performance suppliers will have
relatively fewer orders, can improve their performance level by organizing special training
 Supplier collaboration: become a strategic partner with excellent suppliers.
Through computer networking and electronic data exchange systems, comprehensively improve
the relationship with suppliers, share information with suppliers, and help suppliers improve
management and establish partnerships.

5. Procedures
 Create a procurement information management system to improve the efficiency
and accuracy of procurement.
Walmart manages and analyzes suppliers' merchandise data through its procurement information
management system to track inventory levels and order information, grasp changes in
merchandise information, and make reasonable procurement plans.
Walmart has established a satellite communication network system that enables the distribution
center, suppliers, and each point of sale in each store to be connected, and the entire process of
"filling orders, summarizing orders in each store and delivering orders" can be completed in just a
few hours. Improve business efficiency and accuracy.
STS can require each supplier to provide the purchasing department with information that shows
the basic status of the supplier, and the purchasing department can analyze and examine it. By
reviewing this information, the scope of selection is greatly reduced, avoiding blindness and
randomness, and helping to save a lot of labor, material, and time costs. At the same time, the
purchasing center database should be updated in real time for each piece of goods, through the
tracking and summary of supplier data, the purchasing department can always grasp the supplier's
delivery status, sales records, after-sales service and customer feedback and other important data
and combine these data to evaluate the supplier. For suppliers who are not cooperating well, STS
CAN discard them; for suppliers who are still cooperative, STS can propose improvement
suggestions based on the data, and propose conditions in negotiations with them; accordingly, for
suppliers whose products are selling well, timely delivery and pleasant cooperation, STS can
adopt more lenient and faster procurement methods, and at the same time, treat them as the main
suppliers in the supply chain for long-term cooperation.