Research On Process Improvement Of Shanghai Jahwa OEM Supplier Development

Supplier management is the core part of supply chain management and effective supplier management plays an important role in improving an enterprise’s core competitiveness. With the market competition increasingly intensifying, toll manufacturing (known as Original Equipment Manufacturer, OEM) is adapted by more and more Chinese enterprises. Unlike the procurement of normal materials, OEM operation pays attention to the bilateral long-term strategic cooperation, aiming at a "win-win" situation for the both partners. Therefore, the relationship between the enterprise and its OEM supplier is closer, and an appropriate OEM supplier has a greater impact on an enterprise’s competitiveness.Shanghai Jahwa United Company Ltd, as a well-known domestic cosmetics manufacturing company with a long history, outsources the production of it’s majority production volume. However, due to the short history of the dedicated OEM management study, the OEM supplier management, especially the OEM supplier sourcing, in the company is still very poor and has big area of improvement. Therefore, a focused study on optimizing the OEM supplier development process in Shanghai Jahwa is appropriate.This paper starts with the introduction to the company (Shanghai Jahwa) and the current situation of its OEM operation, including the analysis on reasons for adapting OEM in this company. The existing process of Shanghai Jahwa’s OEM supplier development is then described and analyzed, with main problems highlighted. On this basis, areas for improvement are studied with relevant process improvement tools, ending up with a proposal on process improvement on the OEM supplier development for Shanghai Jahwa. With these efforts, we look forward to constructing an efficient process, which can strengthen the company’s management on OEM operation and related areas. References and helps to other cosmetics company of China, who have the similar OEM operation, are also expected.