Study On Supplier Selection & Management Of CCL

As the rapid development of global economic integration, all the enterprises have the choice of deploying competitive resources worldwide to feed the market with products & services matching its brand positioning. To grab the market share & establish good images for their brand, more and more companies have begun to focus on supply chain management by learning from successful examples in their same or similar field since the middle of last century. While optimizing supply chain starts from vendor selection and management, which is the foundation of cost minimization and profit maximization. It is well known that suppliers who offer products and services satisfied consumers’ requirements are without any doubt to bring substantial profit & dramatic growth for the companies, which is definitely enterprise’s core competitiveness.The thesis take CCL’s non-electric kitchen products division as an object of study, describes the current procedure and situation in its supplier selection and management. Also gives some examples which brought some of its important product lines into trouble by unqualified or in-coordinate suppliers, which lead to unavoidable failure in launching the products into market. As the case showed, CCL’s non-electric kitchen products division’s problems are presented clearly: depend overly on price war; lack of comprehensive evaluation methods according to objective data; apply standards from electric kitchen products division; lack of clear supplier strategic positioning; adapt same management methods for all suppliers; lack of standards for supplier classification; lack of risk management system; lack of long-range strategic vision in purchase.To cope with the problems existed, the thesis offers suggestions for supply sources of important product categories optimization based on suppliers’ ability & cooperative positivity evaluation. In supplier selection process, CCL’s non-electric kitchen products division could consider evaluating supplier’s cooperation initiative according to supplier perception model, whose results can be used for the division’s better understanding of its own position in different suppliers’ minds & what kind of attitude they’ll show in future cooperation; and evaluating suppliers’ ability by calculating their scores in the aspects which are required to meet the division’s standards.Suggestions for supplier management improvements are on the basis of supply positioning model. It can differentiate supplier management method according to the results which are obtained by establishing supply positioning model and calculating the related index. Different means can be adopted based on the classification of different product suppliers.The positivity and ability evaluation & use of supplier perception model & supplying positioning model make flexible use of both qualitative and quantitative analysis to find out the important product suppliers of high quality. Then establish suitable relationships with them & make best use of their advantages to maximize profits for the company.