Solution Design For J Company’s Supplier Management

Supplier management is the important part of company procurement and supply management. Suppliers integrated capacity directly lead to the impact of company market competence. Supplier management is a continuous and dynamic process, consisting of supplier evaluation, supplier selection, supplier classification and supplier relationship building. There is no solid sequence for above phases, and company can arrange their own resources and people and time investment based on company’s own actual management needs.This article focuses on the actual situation and current problems in J company operation. On the basis of in-depth investigation and under the guidance of related theories of supplier management, this article gives advice for problem improvement solution. In the solution design process, this article applies theories like Analytic Hierarchy Process and Supplier segmentation etc into J company specific operation process such as supplier evaluation, selection, classification and relationship management. Through dividing suppliers and their supplies, to evaluate and select suppliers qualitatively and quantitatively, then to aim at diversified management of suppliers and supplies, finally to build strategic partnership relationship with key suppliers. To strengthen supplier evaluation at regular intervals, and select by evaluation result, and then manage to enforce strategic partnership relationship. It is hoped to strength company J’s supplier management, realize total cost of ownership reduction effectively under the same quality level and eventually improve company product competence.