Research On Supplier Relationship Management Of K Company

With the development of social economy,particularly since the beginning of the 21 st century,the rapid development of economic globalization and production integration has made more and more enterprises and organizations realized the great role of supply chain management.Also,along with the vigorous development of knowledge and system of supply chain management,new theory and mechanism of supplier relationship management which is considered as a systematic project of enterprise resource acquisition management oriented to "a cooperative partnership with mutual benefit,jointly exploring and expanding market share,realizing win-win" is gradually established.More and more enterprises get started to change their mind and accept this purely new concept,they determined to turn to pursue the strategy of "co-creating the pie of interest and eating the bigger pie".Some forward-looking purchasing managers have even begun to actively try and practice this theory in the real operation.In recent years,this kind of partnership has been gradually established in some industries,such as high-tech industry,electrical manufacturing,automobile manufacturing,etc.,and the resulting influence is growing.Although such kind of change is only at the beginning point in other industries,it is still a trend that cannot be ignored.The achievement of healthy supplier relationship enables enterprises and suppliers to cooperate more and more closely within such efficient and effective business environment,gradually squeeze out the competitors and build long-term competitive advantages in their respective market.On the one hand,the enterprises could sell their products with a shorter lead time and at more competitive prices,on the other hand,suppliers could obtain long-term contracts from customers by providing with more competitive prices,more flexible delivery,and much better product quality performance.First of all,the article introduces the basic information and operating status of K Company,in addition,it introduces the former supplier relationship of K Company from the aspects of supplier development,classification,cooperation relationship and supplier performance evaluation,etc.At the same time,it indicates the existing problems in K Company's supplier relationship management,such as chaotic supplier selection and development rules,unscientific supplier classification,increasingly strained supplier relationship,and unprofessional supplier evaluation process which works in a mere formality way.Secondly,it analyzes existing problems in supplier management of K Company,then it points out that the main reasons for these problems is the traditional thinking model in K Company which cannot enable to identify suppliers and classify suppliers effectively,this outdated thinking also makes their supplier evaluation activity be too simple and far away from reality.Thirdly,it proposes strategies and methods for problems settlement,for example,the company should identify suppliers and classify suppliers based on their importance and position in the market,and during supplier performance evaluation,should adopt more measurements and indicators in the manner of refinement and quantification,and in this way,the author draws up a distinct supplier performance evaluation model and a supplier classification model which is used to guide the daily operation of procurement activities,and consequently,all of the actions above complete a closedloop of continuous improvement.Finally,the effectiveness of the improvement strategies and actions proposed is verified through comparing the specific data of before-and-after improvement,the data generated from key procurement indicators like quality,cost reduction,on-time delivery,etc.The results of this research are not only of great significance to K Company in supplier relationship enhancement,but also very meaningful to similar enterprises in improving supplier management.