Study On Supplier Selection And Evaluation Of Company S

Company S provides baggage handling/material handling sorting system for customers from logistics companies and airports. With the rapid development of logistics industry in China, Company S is facing tense competition and challenge. Thus Company S needs to optimize its supplier management especailly supplier evaluationa and selection. The aim of this thesis is to optimize the supplier evaluation and selection process of Company S and help them to lower the procurement cost.This thesis will be based on procurement management theories and analyse the fact and problems of supplier selection/evaluation of company S. Company S’s problem includes: lack of proper categorization of procurement materials, no focus point during supplier selection process, evaluation criteria for supplier selection is not enough and the criteria is focus on material cost, metrizable criteria is missing and criteria is missing with weight factor. Then ABC categorization method and Kraljic Matrix are used to categorize the four main types of procurement materials. Brainstorming methos is used to setup the new supplier evaluation index system, which includes 5 first level index and 21 secondary index. Analytic Hierarchy Process method is used to calculate the weight factor of each evaluation index. Finally one type of material is used as example to test the new supplier evaluation index system. After comparing the result of old system and also the supplier performance before and after the system is established, the new system is proved useful and scientific.