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ABSTRACT As the competition has become more and more intense, it is important to improve the competitiveness of a corporation. However, the space of reducing production costs and management costs is smaller and smaller. So it has become very important to reduce logistics cost to control the business costs. In the environment of supply chain management, procurement management is a very important part. It builds a bridge among companies in supply chain. It can make the production demand keep pace with material supply. Many industries and companies have their own procurement network or procurement centre. Nearly 80% of companies have their own procurement management system. For example, in the car industry, GM, Ford and Daimlerchrysler combined to set up the biggest motorcar parts network—COVISINT. Haier is the world’s fourth largest white goods manufacturer and is the most valuable brand in China. Since 2006, Haier has entered the fourth stage of the development strategies---globalization brand strategy. In order to support its global supply chain networks system, Haier has established its own special modern logistics system, and its procurement management is particularly outstanding. This paper intends to analyze Haier’s procurement management and find out how to be stronger and enhance viability and competitiveness for a company by effective procurement management. At first, this paper makes a systematic exposition of the content of supply-chain-management, purchasing management in supply chain environment and builds the theoretical foundation of this paper. Then taking Haier as a case, comparing the status of its procurement and supplier management, it puts forward some empirical findings to research questions about the innovative ways of procurement, procurement tools and their efficiency, evaluation of the performance of procurement management and so on. The research conclusions of this paper have some implications in raising the procurement management level of companies in supply chain environment. TABLE OF CONTENTS DECLARATION ACKNOWLEDGEMENTS ABSTRACT TABLE OF CONTENTS 1. INTRODUCTION……………………………………………………………. 1.1 RESEARCH BACKGROUND OF THIS PROJECT…………………….. 1.2 RESEARCH ACTUALITY……………………………………………….. 1.2.1 Research actuality about SCM………………………………………. 1.2.2 Research actuality about procurement management………………… 1.3 THE CONTRIBUTION …………………………………………………… 1.4 STRUCTURE OF THE STUDY…………………………………………… 2. THEORETIC SUMMARIZATION…………………………………………. 2.1 INTRODUCTION………………………………………………………… 2.2 PROCUREMENT ..............……. 2.2.1 The characteristics of procurement management…………………… 2.2.2 The difference between............................procurement management from SCM perspective ………………………………. 2.2.3 Supplier management……………………………………………….. 2.3 THE DEVELOPMENT TREND OF PROCUREMENT MANAGEMENT… 2.3.1 Procurement market …………………………………………………. 2.3.2 Procurement pattern…………………………………………………… 2.3.3 Procurement strategy…………………………………………………… 2.4 CONCLUSION……………………………………………………………… 3. EMPIRICAL FINDINGS ……………………………………………………… 3.1 INTRODUCTION……………………………………………………………. 3.2 BRIEF INTRODUCTION OF HAIER AND ITS SUPPLY CHAIN…………. 3.3 HAIER’S PROCUREMENT MANAGEMENT AND SUPPLIERS…………. 3.4 THE PERFORMANCE ................IN HAIER… 3.5 FINDINGS TO RESEARCH QUESTIONS …………………………………. 3.5.1 Findings about supply chain and.....strategy in Haier….. 3.5.2 Findings ab