Research On Suppliers’ Relationship Management Of KANDAS

In the rapid development of the world economy, some key problems facing the enterprises are how to win in today’s complex market economy, gain market share and maintain the vitality. Competition among enterprises has, to a considerable extent, been transformed to the competition between supply chains. In this circumstance, the traditional management methods show their limitation, and the companies can no longer rely solely on their own resources and strength to gain advantages in the competition. Therefore, it becomes more and more essential to establish partnership with other cooperation in order to integrate the resources available to obtain the synergy to drive the development of both the enterprises and their partners.KANDAS is a small scale foreign trade company specializing in the sale of paper product, and relevant technology consulting services. Its business covers the pulp and paper equipment, spare parts and materials tailor to the needs of the customers. The company makes a fortune either from the price difference between customers and suppliers resulted from their information gap, or from the commissions as an agent for the suppliers. Therefore, the key task for the company in managing the relation with the supplier is how to choose powerful suppliers and to establish a long-term strategic relationship with them.This paper analyzes in detail the present situation and typical problems of the supplier relationship management of KANDAS. Based on the above analysis, with combination of the theory of supply chain management, supplier management, supplier relationship management, the fundamental framework of suppliers selection and management are established using such methods as quantifying the indicators, relationship positioning tool, AHP hierarchical analysis and Pareto analysis. This framework consists of company IT system, suppliers selection system, suppliers management system and strategically purchasing system. Within this framework, a new system model for establishing and maintaining the supplier relationship is constructed for KANDAS by means of hierarchical management of suppliers, supplier performance and quality assessment, and incentive bonus. Furthermore, this new supplier relationship management scheme of KANDAS is secured by organization restructuring, information management, mutual learning and risk management. In this way, a practical, effective and comprehensive supplier relationship management system of KANDAS is established to scientifically and effectively configure the resources from both KANDAS and its supply chain.The designing and building of KANDAS supplier relationship management system provides an example and a useful attempt for small and medium international trade enterprises on how to deal with the relationship with upstream suppliers in supply chain, build a new partnership, use and allocate resources under current competitive commercial environment.