Dissertation > Economic > Economic planning and management > Economic calculation, economic and mathematical methods > Economic and mathematical methods

Supplier Management Optimization Planning Study of XD Company

Author SuiKun
Tutor WangYing
School Jilin University
Course Industrial Engineering
Keywords Supplier Supplier Chain Supplier management Banking Equipment
CLC F224
Type Master's thesis
Year 2009
Downloads 492
Quotes 2
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As Chinese market-oriented economy continues to improve, the competitiveness of the same industry is more and more intense. Banking equipment manufacturing industry is a new emerging industry in our country in recent years, the mainstream of the industry enterprises are private enterprises. During the course of development, the basic business management of private enterprises did not achieve the same progress as R & D. After China’s accession to the WTO, the domestic banking equipment manufacturing enterprises are faced with more competitors and challenges. Requirements of this situation are to enhance basic management, to obtain benefit from management, in order to improve competitiveness.As an important element of enterprise management, supplier management plays a crucial role in cutting down costs, shortening development cycle, providing high quality products, and so on. Supplier management is a management mechanism of dealing with the relationship between enterprise and supplier. Any one of the supply chain has problem, which will affect the whole normal operation of the supply chain. If an enterprise can be a good understanding of supplier management’s conception, a right using of supplier management’s ways and means, it will make progress on product quality, profit, customer satisfaction and so on, accordingly, enhance the core competitiveness of enterprise fully.Adopting XD Company as a study object, this paper analyzes the present status of supplier management and finds out the problems in supplier management making use of supplier management theory. From the operational point of view, this paper also brings forward amendatory program in order to improve XD Company’s supplier management, mainly the following aspects:1. The existing flow of the procurement system carried out by XD Company follows the operation mode under the traditional and functional organization and structure, which should not apply to very good the organizational mode combined function system with division system taken by XD Company at present. After analyzing the shortcomings of such a flow, this paper redesigns business process making use of the principle of management. The improved business process effectively reduces the blindness in procurement of goods, reduces the volume of material inventory, reduces the number of funds occupants, and cancels some aspects, so that procurement plans closer to market demands of products.2. On the base of analyzing status quo of supplier classification, this paper points out that XD doesn’t work well at supplier’s classification management and makes it impossible to focus on the management of important supplier, and identifies that the root of the problem is that XD doesn’t have specific supplier classification standard. According to the importance of goods’procurement, making use of ABC classification, suppliers are classified. For XD Company, this classification provides the basis for supplier classification management, as well as provides the foundation for supplier relationship management.3. The unreasonable evaluation target of supplier, the lack of objective evidence useful to evaluation, the apparent lack of evaluating participants, the lack of re-evaluation for existing supplier and so on are turned out during the course of consulting supplier evaluation methods of XD Company. After analyzing the reason, this paper re-designs the selection process and evaluation methods of supplier, standardizes the duty of departments participating evaluation and selection, and designs the re-evaluation methods for existing suppliers. The above offers a basis for enterprise to develop new suppliers and evaluate existing suppliers reasonably.4. According to the investigation for goods’quality supplied by the existing suppliers, finding that XD Company controls and manages suppliers only depend on contract controlling, so that suppliers often exculpate responsibilities by use of items unexpressed clearly on the contract or technical standards. Based on such a case, the paper offers competition control, contract control, equity control and other means for XD to provide new ideas for further efforts to supplier management.5. On the basis of supplier classification, the theories of developing appropriate relationship with suppliers, setting up strategic partnership with key suppliers, establishing cooperative partnership with important suppliers, developing general cooperative relationship with general suppliers are brought forward. At the same time, the use of incentives to suppliers selects the most suitable suppliers in accordance with ever-changing relationship between enterprise and suppliers.6. To analyze the rational or irrational non-cooperation risk and performance risk maybe appeared in the course of developing partnership with suppliers, as well as to enact preventive measures in order to avoid risk.By means of study, this paper provides the program to improve supplier management. The author hopes this article can play an active role on XD Company supplier management, and hopes this article have reference value for manufacturing enterprises’supplier management.

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