The Design Of Supplier Evaluation And Selection Index System In The Supply Chain Management

In order to improve B company supply chain management, reduce cost, expedite response speed to market and recapture market share, this paper tackles supplier evaluation and selection in the supply chain management as the study subject.Firstly, the evolvement of the relation between supplier and manufacturer is studied and it is indicated that the relation had changed from simple business relation to supply chain cooperative relation. So B company should establish win-win cooperative relation with its strategic supplier.Considering that supplier evaluation and selection is the foundation of establishing supply chain cooperative relation, based on former research and the embedded analysis of the issues and causes of supplier management in B company, this paper then set up an integrated supplier evaluation and selection index system. This system is to appraise supplier from five aspects, including quality, technology, delivery, cost management and business guarantee abilities. The index system includes not only traditional indexes, such as quality, cost, delivery, but also others abilities that supplier should have in supply chain environment, such as production flexibility, cooperative design ability and informatization level. In addition, this index system is complied to the requirement of keeping long term relationship by evaluating supplier'technology and equipments programming in the future three to five years.After comparing several methods, this paper chooses to combine AHP and factor analysis methods to evaluate supplier. AHP is a multi-object decision-making analysis method, using of qualitative analysis and quantitative analysis, which applies to the supplier evaluation and selection, while factor analysis can overcome the subjectivity of AHP in hierarchy structure and indexes weight confirmation.Finally, the paper presents an example of evaluating B company plastic parts supplier to validate the validity and practicability of this evaluation system. The paper also provides some advice to the supplier relation management base on the result of example.