Abstract.
This paper outlines the nature of procurement management that is typically found in Chinese enterprises. It traces some of the recent ideologies that have led to a rapid development in the sophistication of procurement in the past twenty years and discusses some of the modes of logistics industry likely to be practiced by leading organizations.

The cases study from Shengli Oilfield Haier and GM that illustrates the application of some of the modes of managing procurement outlined in this paper appears at the conclusion of the paper. And the paper has been able to reach the conclusion that there is a big potential to develop modem logistics industry in China and that the service objects are concentrated and the foundation for logistics industry is solid. It also suggests that to provide unique logistics service issues such as the administrative system the information infrastructure and the quality of business practitioners in providing logistics industry need to be addressed.

Key words: procurement management information system logistics industry logistics management