The Research Of Company A On Optimizing Supplier Management System

The coming of globalization has fostered a growing competition amongcompanies. In order to expand the market share, maintain sustainabledevelopment, supply chain management has become a new hot spot inmodern enterprise management. Supplier management, as a major content insupply chain management, not only has been applied by many largecompanies, but also has become the major method of reducing risk and cost,increasing communication among customers and achieving win-win.This paper is based on actual work experience and interviews withresponsible person in Company A, aiming to find out the problems existing insupplier management system in the company, analyze their reasons andpropose optimizations in purchasing strategy, supplier selection and supplierperformance management under chemical industry. Some models andmethods are adopted, e.g. Kraljic Model, weight point method and AnalyticHierarchy Process (AHP) etc. Especially, some practical suggestions wereproposed to solve current existing problems. Such as: to establish suppliermanagement committee to enhance the value of supplier management withinthe company; to adopt joint procurement to solve the price and supplyproblem of the key material; and to use KPI to manage suppliers’performance and continuous improvement. The author hopes this paper canhelp Company A to keep up with the development and provide references formiddle and small-sized enterprises to increase market competitiveness.