Research On Supplier Relationship Management Under Online Reverse Auction

Along with the intensifing of competition, more and more companies realize that the key to gain competitive advantage is establishing the partnership with suppliers. Supplier relationship management (SRM) is a kind of management concept and software technique solution whose objective is establishing and maintaining the long-time and close partnership with suppliers. Online reverse auction (ORA) procurement is focused because it raises the buyer's procurement efficiency and lowers the cost. But more and more researches indicate that the application of ORA may bring negative influence. However, people has not pay enough attention on how to manage it at present. There is nearly no domestic research about this. The paper studies the influence factors of buyer-supplier relationship under ORA from buyer's viewpoint base on the results of domestic and international research. The key point in this paper is SRM based on ORA technology in procurement phase, which tries to seek effective actions to reduce its negative influence.The paper firstly introduces the principle of ORA, its process, characters and advantages. Then, the paper gains the major influence factors of buyer-supplier relationship in the literature analysis method and constructs the conceptual model of buyer-supplier relationship's influence factors under ORA environment from three stages. According to the different influence factors, the paper proposes that buyers need to start with supplier selection, supplier relationship performance evaluation and the maintain and improvement of supplier relationship to reduce negative influence. In supplier relationship performance evaluation, the paper introduces the method combined with G1- and fuzzy comprehensive evaluation to appraise suppliers more conveniently and effectively. At last, the paper analyses the case of Alcatel-Lucent Shanghai Bell Company Limited to explain what measures buyers should take to prevent the negative influence to buyer-supplier relationship under ORA.