Research On Supplier Relationship Management Of AD Co. Ltd.

Most of us can clearly recognize the modern revolution of science and technology, guidedby information technology, are accelerating with the global competition intensifies day by day.The upstream and downstream enterprises collaboration in supply chain management becamethe focus of worldwide management. As the front structure of supply chain, Supplier turnsinto strategic poise during competition. Supplier Relationship Management(SRM) is alsoconsidered to be the critical part in supply chain management. Enterprise often activelyintroduced supply chain management tactic to break through the constraints from resource.Cooperating and innovating with suppliers in technology and management, transfer thetraditional business relations into new partnership for reducing the transaction risk andbusiness cost, especially to enhance the overall advantage in supply chain competition.This article will first introduce the basic concepts and theories of supplier relationshipmanagement, and analysis the content as well as researching significance of supplierrelationship management. It will follow empirical research of supplier relationshipmanagement in wholly-owned subsidiary company of AD (USA) Company in China (latercalled AD Company). To summarize the supplier relationship management problems ADCompany has encountered.Secondly, we will seek for the root cause of these SRM problems happened in ADCompany from analyzing the process of supplier development, classification and performanceevaluation. According to the problem and root cause analysis in AD Company supplierrelationship management, we combined the cutting-edge research to put forward and discussfour improvement strategies for AD Company. They are supplier exploitation, supplierclassification management, supplier key performance evaluation and supplier incentivemechanism. At the meanwhile we will apply chart method, balanced scorecard and AHPmethod to demonstrate in improving management of supplier relationship. From establishinglong-term and win-win partnership with supplier, AD Company will form his own supplychain competition advantage continually.At the end of this article, we review the supplier relationship management of AD Company combining the challenges and prospects in current financial turmoil environment. All of thiswill further step in explaining the importance and necessity of establishing long-termcooperative partnership between enterprise and suppliers...