Purchase Portfolio Modeling And Supplier Relationship Optimization For Chain Retailers

Purchase is one of the most important part in retail chain, the importance of purchase strategic leads to more and more attention. In China, the academic study of purchase is still at the initial stage, moreover, the research of strategic purchasing is even less. So it is meaningful to study the strategic purchasing in retail chain.We carry out a detailed analysis and research on purchase management in retail chain. Take supermarket chains as an example, Kraljic purchasing portfolio matrix was applied to the goods location in retail chain. Combined the evaluation of procurement risk and profit potential with the impact of supplier relationships, we divide goods into four types.Firstly, from the perspective of supplier relationship management, the thesis classified the goods in supermarket chains for their using. Secondly, formulated the evaluation index system for purchase risk and profit potential under the analysis of factors both internal and external which influence the goods in retail chains, and evaluated them with Delphi Method and Analytic Hierarchy Process(AHP)respectively.Thirdly, analyzed characteristics of the four types of goods and supplier relationships all, determined the procurement strategy and supplier relationships for them.Based on the results of evaluation with the two evaluation index system, and combined with the corresponding supplier relationships, the thesis established goods combination model for purchase risk and profit potential, and found out the very goods combination which could realize the minimization of purchase risk and maximization of profit potential by branch and bound algorithm.Finally, took a supermarket chains as an example, the thesis tested feasibility and availability of the goods combination model proposed by itself.Then, compared with the supplier relationship and ABC classification under experience condition on two aspects of purchase risk and profit potential.Quantitative analysis on influence of supplier relationship to purchase risk and profit potential lowered the purchase risk, and critical point method overcame the uncertainty of ABC classification method, thus, provided a simple but clear quantitative criteria for the product positioning which could minimize its purchase risk and maximize its profit potential.