Research On OEM Supply Chain Coordination Models And Mechanisms In Environments Of Hybrid Channel And Brand Premium

In the context of trade globalization and production globalization and company globalization which brought market economy, Company need to face an increasingly competitive environment complexity. Buyer’s market demand Volatility and the individual needs highlights gave birth to the technological progress and the diffusion rate and the faster pace of product replacement. Enterprise survival needs facing shorten delivery, improve product quality, reduce costs and improve service challenges. To stand in the fierce market competition in an invincible position, companies must accurately grasp the timely response to the focus of competition, continue to develop products to meet customer needs. However, it is simply difficult for a single enterprise relying on own resources to deal with this varied market, Traditional supply chain also showed embarrassment of difficult to adapt, The OEM supply chain of professional league which peeling vulnerable and building core business strengths to meet market needs showing a survival advantage.For OEM supply chain coordination under environment of brand premium and hybrid channel, the paper constructs the logical structure of quality-brand-channels context to in-depth study. Face to maket, Brand and increase the value is the core issue of concern to the OEM supply chain, Product quality not only affects the sales prices also affect demand are two important aspects of the brand premium performance,Obtaining high prices and guiding demand through improving product quality is undoubtedly ideal pursuit of OEM supply chain,however,due to the two sides belong to the respective independent decision-making body, In the trade-off between pay and benefits there is a conflict of individual rationality and collective rationality, In this paper, the premium effect of product quality affect both sales prices and market demand as the entry point, to achieve improved earnings of bilateral cooperation for the purpose,using game theory,agency theory,optimization,contract theory and other theories tools,discussing selection strategies of brands to improve manufacture’s products quality under brand’s detection level and detection probability are limited and the strategies of brands share manufacture’s investment cost ratio to improve product quality and market demand,further research brand premium sharing contract about the two sides to work together to achieve the brand premium allocation, analysis of the validity of contract and its parameters;For manufacturer carry out direct sales channel outside the traditional OEM channel formed hybrid channel,brand as a supply chain leader need to establish an effective coordination mechanism in order to achieve the two sides “win-win”. The study includes the following aspects:(1) Quality improvement strategy of improving OEM supply chain production brand premium. Manufacturers based on cost considerations, would choose to produce a certain quality level products to minimize the total cost of their pay for quality; The high quality can obtaine high-profit through a high premium, therefore brand will be more focuse on providing high-quality products.In the case of brands detection level limited and external loss-sharing, study the dependence of the decision-making and behavior inducing between in OEM supply chain quality decision-making body, for improve product quality and increase brand premium providing strategic choice.(2) Cost-sharing coordination of quality’s brand premiun affecting demands.Based on research of quality and cost with quality and demand relationship,quality and demand and cost are associated togather by the learning curve effect of OEM supply chain, constrcting quality’s brand premium effects affecting demand function,in the reverse relation of quality affects investment cost and demands, in the centralized and decentralized decision-making as the comparison standard,according to optimal decisions under the total supply chain profit maximization and respective profit maximization,studing investment cost sharing strategies to achieve brand, manufacturer and OEM supply chain profit improved Pareto conditions than decentralized decision-making.(3)Study of brand premium allocation. Constructed brand premium function which is achieved by the joint efforts of both brand and manufacture, for the reality problem of brand premium assignment, Price contract of the general wholesale price plus brand premium share is given,Game on brand and manufacture benefit of these two choose effort level respectively from individual rationality and collective rationality, getting the game matrix yielding. Through the comparison of individual income,worked out the influence of the optimal brand premium allocation proportion under the equilibrium solution and its influence on brand, manufacturer and OEM supply chain gain;Though the comparison of overall revenue found insufficient exists in equilibrium which derived from individual income compared, explore the brand premium allocation ratio under certain conditions of influencing factors as coordination contract which can avoid the moral hazard of both sides in order to achieve common benefits of both improved.(4) Coordination of the hybrid channel. In order to meet consumer demand heterogeneity and strive for a certain position in the game with brands, manufacturers will develop its own direct sales channel outside the traditional OEM channel, thereby forming a hybrid channel OEM supply chain, Manufacturer openning up direct sales channel will split off a part of consumers from the traditional OEM channels,thus the manufacturer is not only brand’s partner but also brand’s competitor. For the case of brand leading and considering brand premium in which manufacture has opened direct channel, building basic of hybrid channel structure is needed to be studied,find out the both need to have the advantage respectiviy and optimize mechanism of interaction;according to the comparison of the decentralized decision and centralized decision in hybrid channel, analysis of both revenue improved spatial in hybrid channel, studying perfect coordination mechanism which enables brand and manufacture gain revenue Pareto improvement and achieve OEM supply chain maximize total profits.