Research Of Supplier Selection Based On Strategic Sourcing

With the development of world economy and the progress of modern science and technology, competition among enterprises gradually upgraded to the competition between the supply chains. Corporate profitability is not only determined by the performance of enterprises, but also the cooperation of other related enterprise. Therefore, enterprises need to establish a "win-win" relationship procurement to be a long-term competitive advantage, and the strategic sourcing is a typical representative "win-win" procurement relationship.In the supply chain, suppliers play an important role. It is the center of manufacture, quality and cost control, as well as source of chains. How to select suppliers correctly and effectively under the condition of new type of procurement relationship has great significance for implementation and efficiency improvement of the supply chain as a whole. This paper researches supplier selection in-depth on the view of strategic sourcing, the mainly research contents are as follows:Firstly, the paper describes its study background and significance and reviews the research literature of supplier selection in recent years. As a result, the point of the paper is obtained. Then theoretical explanations of supply chain management, procurement development, core idea of strategic sourcing and supplier selection's importance are provided. Secondly, the impact of strategic sourcing's development on supplier selection is discussed through analyzing strategic sourcing's action model and comparison with traditional procurement model. Through impact analysis, design principles of factors are proposed and supplier selection index system based on strategic sourcing is constructed. In the paper, index system is divided into four guideline layers: supplier's financial capacity, supplier's production management capacity, supplier's co-operation capacity and supplier's development capacity. Each layer contains specific factors. Thirdly, based on the current supplier selection methods, strengths and weaknesses of different methods in the selection process are analyzed. Finally the paper works out option method portfolio by conjunction of PROMETHEE with AHP. First of all, AHP is used to calculate index weight. And then PROMETHEE is calculated to sort suppliers. The process and principles of two methods are described in detail. Finally, empirical analysis and result is provided. Selection index system and selection method are verified empirically. Liu yang Panda Fireworks Ltd is selected as the evidence of the object. A clear and concrete steps to choose and calculation method is discussed in the data analysis. A relatively complete implementation framework of supplier selection based on strategic sourcing is built as a whole and conclusion of the paper is drawn from empirical result. The research results of the paper have played certain reference role on the development of supplier selection research and China enterprises'strategic sourcing implementation effectively.