Supplier Management Of IP Company In China

With the development of economic globalization and the improvement of China economic environment, many foreign companies landed on China market in a continuous stream. As the global sourcing is becoming a developing trend and"made-in-China"product is displaying its strength of low cost, lots of multinationals focus on China as their procurement center. To strengthen the purchasing management in China market or even in the whole supplier chain management is the key point for those foreign companies to materialize their strategy in China and improve their core competitiveness. Facing the difference in culture and management level between Chinese enterprise and foreign enterprise, the most important is to improve the supplier management.Based on the situation that IP company just entered China market for a short time, this thesis analyzes all those problems in supplier management which IP company is facing now, and puts forward effective strategy to solve or improve the problems in supplier selection, regular management, strategic supplier management and risk management.The first chapter analyzes IP company's strategy in China and the current problems which IP company faces in supplier management, and points out to strengthen the supplier management will be helpful for IP company to materialize its strategy in China and maintain its competitiveness.The second chapter classifies all IP's current purchased product and suppliers in China into four categories, which helps IP company to focus on searching the most proper suppliers at the first beginning. It also provides various channels to seek for new suppliers, and gives suggestion for how to select and analyze new suppliers, besides points out the most important aspects which IP company should pay attention when selecting new suppliers.The third chapter aims at the current situation which IP company is facing now and analyzes the problem in the 3 most important index in supplier management– quality, price and delivery, and searches for the strategy and solution. In quality management, it suggests to start since supplier selection, and visit supplier regularly or irregularly to monitor the whole process, and improve supplier performance evaluation, and build up win-win relationship with supplier. In price management, it introduces some price analyze methods which is suitable for IP company. It also points out if IP company wants to strengthen its supplier management, it should adopt series strategy, like consolidation purchase, supplier data base, etc. In delivery management, it points out the important in on-time delivery, and puts forward the suggestion that IP company should reinforce the capability in forecast and so on. Besides, it designs the supplier performance evaluation form and evaluation procedure for IP company.The forth chapter introduces the developing trend and importance of strategic supplier relationship. It points out the selection of strategic supplier should be considered from the need of market, supplier and enterprise. When build up the strategic relationship, IP company should pay attention to the selection of project manager and member, the skill in negotiation and protective items in cooperation contract. To develop the strategic supplier, it puts forward the strategy that buyer company should allow supplier to join in the new production research, assist supplier to improve its production and service level, share information with supplier, build up trust between each other, and maintain the stability of organization.The last chapter analyzes the supplier management risk which IP company is facing in quality, price, delivery, service, trust, etc., and provides suggestion to minimize, avoid, evade and divert risk.