The Research Of R Company Supplier Selection And Performance Evaluation

Economic globalization and the development of information technology networks greatly promoted international cooperation among enterprises, but also intensified the competition among companies of the same type. As products of different companies have no significant difference, the company who has a lower production cost than its competitors would get a great advantage in the market. In order to maintain a production cost advantage, more and more multinational companies transfer production line to those overseas factories that have a lower manufacturing cost. With the gradual increase in the outsourcing business, how to effectively manage suppliers to ensure a consistently lower procurement costs, good product quality and timely delivery is becoming each company’s big concern issue.Supplier selection and evaluation is the most important task of supplier management, almost all enterprises see it as the core work of purchasing department. From the beginning of Dickson, lots of experts and scholars in the world conducted/are conducting in-depth research on the supplier selection and evaluation method, and some of them have already achieved great results. Through the analysis on relevant documents, we can get a conclusion that current research mainly concentrated in two areas:"supplier selection and evaluation index" and" supplier selection and evaluation of research methods".After analysis the current quality management of R Company, the writer find that R Company’s current supplier selection and performance evaluation method have some problems, which is blocking R Company to choose the best supplier from a list. By learning related theories and methods, the writer started to design a new supplier selection and performance evaluation methods for R Company by using AHP knowledge. After describing the background, writing purpose and the meaning of this paper, the writer introduced related theories being used in this paper, and then introduced the overview of R Company, the company’s existing problems on supplier selection and performance evaluation, and carried out a detailed analysis and elaboration. Chapter 4 and Chapter 5 are the most important parts in this paper, as they separately provided detailed improvement methods on R Company’s supplier selection and performance work. In Chapter 4, the paper firstly made an improvement on supplier selection workflow, which helps to set up a rational supplier selection process, AHP method including each calculation step, supplier selection indicators and the way to calculate the weight of each indicator. Finally, designed supplier election method is used on R Company’s new supplier selection work. Through on site audit to compare each supplier’s performance, through AHP calculating get the best supplier choice results. In the "supplier performance evaluation" part, the paper firstly introduced improvement method, and then design a tailor made supplier performance evaluation index system, AHP theory is used for calculate the weight of each index. Good design needs specific implementation method, therefore, in this paper based on the weight of index design and calculation results, the design of specific assessment methods and scoring rules. Finally, this paper presents recommendations for supplier’s hierarchical management, through the excellent supplier incentives, to eliminate substandard suppliers to optimize the company’s supplier’s team. Due to the limited knowledge of the paper writer, it is inevitable to have some deficiencies in this paper, the writer list out some deficiencies in Conclusion and Prospect part, which will be continued studied in future study.Not only R Company, but also other similar companies are suffering the same confusion on supplier selection and performance evaluation work. The paper’s research result can provide a valuable reference to these companies.