Strategy Of OTC Supplier Management

The purchasing demands from European buyers kept decreasing since 2008, along with the decreasing of consuming demands in European market. Confronting the lower pricing strategies of emerging market with lower-labor-cost in South-East Asia, Chinese export corporations are now facing the increasing material cost and also the higher labor cost in China.They are eager for instructions about how to deal with the globalized super market chain.But poor production management,under-development quality assurance system and also the follow-up skills,are all pulling them behind.European buyers are also not able to establish a successful supplier base in China.This article introduced how OTC manage its suppliers, analyzed problems of new supplier development, and maintainance of existing supplier. This lead to the solutions about how to improving new supplier development procedure, and how to improve KPI standards. Also, supplier grading is also took into consideration as effective supplement as solution of maintainance of existing supplier.Finally,we proposed better procedure of new supplier development, improved KPI standards and supplier grading management, as 3 different measures to improve OTC supplier management.