Vendors’ Rolling-Wheel Management Mode Of Telecommunication Manufacturers

Entering 21st century, products’life cycle is shortening continuously with the progress of technology and demand diversification makes product varieties increase quickly. Quick demand increase of telecommunication equipments.Brings telecommunication manufactures a lot of opportunities. In the mean while, with the fast productivity increase of worldwide telecommunication manufacturers’, the market competition becomes more and more furious. Hence, telecommunication manufactures also face great challenges. The whole industry profit margin becomes smaller and smaller. Many telecommunication manufactures are losing profit or in the edge of deficiency. How can the telecommunication manufacture be the stronger in vigorous competition? The enterprise should take the strategy of cost leadership and agile response. Vendor management helps enterprise lower the costs, improve product and service quality as well as enhance the response ability to customers’demand. Therefore, it is quite necessary for enterprise to use scientific and effective methods to manage its vendors in order to increase its competition ability. Many domestic and international scholars have studied vendors’attributes and methods of vendor selection as well as relationship between enterprise and its vendors. But people who are in charge of vendor management in enterprises have difficulties in practicing previous theories systematically in their daily work.By comparing the characteristics of vendor management under traditional purchase mode and the ones under supply chain environment, this article puts forward that present enterprises mustuse modern principles to manage vendors. On the basis of vendor classification and competition specialties of telecommunication industry, this article summarizes that R&D, price, quality, delivery and service are the most import attributes of vendors of telecommunication manufactures’. The innovation of the article lies in the rolling-wheel vendor management mode. The author takes the enterprise’s development as the X-coordinate and the cooperation level between the enterprise and its vendors as the Y-coordinate. Vendor selection, evaluation, elimination and development, the four main procedures of vendor management can be compared to a rolling wheel and vendor’s five attributes are the main spokes of the rolling wheel. Along with the development of the enterprise, the wheel of vendor management continuously rolls higher and forward.After expatiating on the detailed content of vendor selection, vendor evaluation, vendor elimination and vendor development, this article takes NSN SHANGHAI , a large telecommunication manufacturer as an example of implementing rolling-wheel mode. By enumerating the problems of NSN SHANGHAI’s original vendor management mode and displaying the progress after the implementation of new vendor management mode, this article proves that the rolling-wheel mode can help the enterprise increase its competition ability. Moreover, aiming at the weak points of the NSN SHANGHAI’s vendor management practice, the author proposes two methods to perfect the rolling-wheel vendor management mode. One method is to set up multi-dept vendor management team, so that the driving force of the rolling wheel is strengthened. The other method is to use supply subdivision tool to make vendor position which sets the axis of the rolling wheel. Rolling-wheel mode is simple and vivid. It can help those people in charge of vendor management in manufacturing enterprises, especially buyers in telecommunication manufacturers manage their vendors better.