Supplier Selection Research Based On Global Sourcing

In the 21st century, with the strengthening trend of global economic integration and the rapid development of information technology, the world economy is more closely connected, which brings more complex peripheral environment and increasingly fierce market competition to the enterprises. How to take advantage of this economic integration trend to optimize the supply chain, to make effective use of global resources to enhance the competitiveness and to achieve and maintain the advantage during the market competition have become very important for enterprises in different countries. This has made more and more enterprises become aware of the importance of "saving" while "sourcing", that is, strengthening of purchasing management and reducing procurement costs. Therefore, global sourcing has been becoming the focus of many enterprises in the world.As one of the most effective way to utilize world resources during the development and expansion, global sourcing has become an important aspect of global resource deployment of the enterprises and a key motivation source of their development. Global sourcing means to deploy resources reasonably and nationally via multiple purchasing strategies in order to acquire import raw materials and source various long-term and stable supply channels. With the speed-up of economic globalization, global sourcing has become an important way of utilizing global source, lowering production cost and enhance core competitive in order to acquire maximum profit. Due to the fierce competition and higher requirement from consumers, more and more enterprises have started sourcing globally. Under the circumstance of global sourcing, the selection of suppliers will bring significant influence to the competitiveness of the enterprises, especially to the Chinese export-oriented companies. Therefore, how to choose effective suppliers has become a key issue of the Chinese export-oriented companies. More and more enterprises and research institutions have been realizing the fact that there are many defects in the existing methods of selecting suppliers. How to cross the enterprise's internal resource management system to scientifically evaluate and select best supplier so as to enhance the core competence and win competitive advantage has always been an important research topic of the management during the recent years.In order to scientifically select right suppliers, it is necessary to set up a complete supplier selection and evaluation system to reflect the actual situation at the supplier completely, concretely and objectively. After analyzing the various factors that probably affecting the cooperation between the enterprises and the suppliers such as production capacity, management capability, quality control, cost control, delivery and compatibility, etc., this thesis puts forward the basic principle and process design of supplier selection as well as the suppliers selection and evaluation system, from which it creates a supplier selection model based on DEA / AHP method.Lastly the thesis chooses RC company as an example for empirical research and selects the best partner among many suppliers using DEA / AHP method set up in the thesis. The selection result is in accordance with the anticipated design and calculation. This method can combine both the qualitative and the quantitative factors during the analysis and evaluation and therefore overcomes the disadvantages of traditional methods due to the lack of quantitative factor analysis, which makes the selection of suppliers more scientific and practical.