SIE’s Key Supplier Management On Risk Control

Supplier risk control is an important link in the supplier relations maintenance,formulate appropriate supplier strategy and control the supplier to build perfect and healthrisks of the supply chain system, through the scale and assessment system risk evaluation ofsuppliers can test the supplier risk, and based on this, modify the purchasing strategy and tothe corresponding risk control will improve the operational efficiency of the enterprise.SIE company is one of the world’s leading device manufacturing industry leadingenterprises, with key suppliers in the selection process of purchase risk control and evaluatethe strategic matching degree has formed a complete management system. The papers to thekey materials suppliers SIE as the main line, induces the enterprise in the supplier riskmanagement method, the risk types and reasons as well as the prevention measures to makethe analysis, help enterprise for strategic decision and risk management.Supplier’s risk management is the whole supply chain must control part, once the riskchange to the real risk, the enterprise will inevitably suffer a loss. These risks includingsupply chain rupture, debt risk, financial risk, corporate social responsibility, health andsafety and so on risk. For suppliers risk management we have various channels and a varietyof means to control. Through the case analysis of this paper, the supplier’s risk managementcan be divided into two big dimensions and eight areas to be assessed. Supplier risk comesfrom many reasons, mainly from the change of environment and strategic matching degree ofchange. The risk control in and make the adjustment for risk in advance, the trend of thedevelopment of risk at any time control and adjust the purchasing strategy to avoid risks.