Building Materials Supplier Selection Research Based On Balance Scorecard Theory

With the increasingly fierce market competition, in order to survive, by strengthening thesupply chain management construction enterprises improve their market competitiveness. Insupply chain management, procurement management is a vital part, including procurement costmanagement, procurement quality management, procurement risk management. Constructionenterprises should consider the enterprises that supply advice, materials, equipment, personnelsupply, construction management and others into a coordinately developing organism. So it isimportant to study the rationalization of the supplier evaluation and selection method. Theconstruction industry is often large scale, especially the procurement of construction materials,the slightest mistake may lead to serious consequences, which also determines a higher risk ofpurchasing building materials, construction materials, so construction industry should thereforestrengthen procurement management, while vendor selection issues affect many aspects of theprocurement management, and the objective and accurate evaluation of the supplier is basis forsupplier selection. It can be seen that it is important for the deep research of the evaluation andselection of supplier. In sight of the characteristics of the construction industry itself, we shoulddevelop a set of method for building materials supplier evaluation and selection, therefore, thisstudy has practical significance. In this paper, taking into account the building materialssupplier selection characteristics of the problem, we research deeply into project evaluation andselection problems in the supply of building materials, build a system for the evaluation ofsupplier of building materials based on the Balanced Scorecard, and use appropriatedecision-making analysis method to calculate the evaluation value of selected suppliers, andultimately sort and select suppliers.The study uses methods of literature review, inductive analysis, systems analysis, instanceanalysis and other research methods. By comprehensive evaluation methods of combination offuzzy group decision-making and multi-criteria decision-making, strict logical reasoning andstructured text expression, we develop rational, efficient supplier evaluation and selectionmethods.On the basis of former research results, this paper completed the following studies.We develop materials supplier evaluation system based on the Balanced Scorecard theory.Taking the characteristics of building materials suppliers and the construction companies in theproject of building materials supplier selection problems into account, we use the BalancedScorecard to build materials supplier for the evaluation index system. We add the environmentaldimension when building the indicator system for the full consideration of the environmentaldamage of supplier’s production and operation, which makes the comprehensive evaluationresults of building materials supplier more accurate and objective. We adopt the comprehensive evaluation methods with the combination of fuzzy groupdecision-making and multi-criteria decisions to comprehensively evaluate building materialssuppliers. First, make a reasonable conversion to the fuzzy evaluation indexes, weight everyindex by a decision-making team composed of experts and experiential individuals in this field.Then considering two criteria: the supplier evaluation value and the expected cost of business,through a multi-criteria decision making method, calculate the various building materialssuppliers comprehensive evaluation, finally classify building materials suppliers and choose.This comprehensive evaluation method makes supplier selection decisions more objective andaccurate, will help companies to make the right decisions in the supplier selection.