A Case Study On AH Company Key Supplier Development And Performance Management

With the development of global economy and the refinement of social division of labor,the management mode of "horizontal integration" has become the first choice by modern enterprises.Under this environment,the ability of supplier chain management has become an important factor restricting the development of enterprises.Excellent supply chain management level can become the core competitiveness of enterprises,to boost enterprises;On the contrary,the enterprise can be trapped in business difficulties and defeated by competitors.Key supplier development and performance management is one of the cores of supply chain management.To improve the ability of key supplier development and performance management is the only way for enterprises to eventually form a high-level supply chain and an effective means for enterprises to improve their core competitiveness.This thesis reflects the current situation of the company’s management for key supplier through the three typical cases from AH changshu company: the gearbox supply disruption event,the enormous expense compensation for customer claim,and Kevin’s troubles,and deeply analyzes the underlying fundamental problems,such as the lack of supplier risk management.Unreasonable supplier development mode;Lack of supplier performance management system.At the same time,under the guidance of the relevant theory and refer to the related literature and the results about supplier management by the scholars at home and abroad,and take account the practical situation of the company,to carry out the clear and effective solution for company’s key supplier management method,which include: Optimize the key supplier audit list and build a comprehensive key supplier evaluation system,which covering 16 potential risk projects with quality,production,technology,project,EHS and business as the six evaluation modules;establish a supplier development process driven by cross-functional group;establish PPAP and pilot production process;use expert scoring method to establish a weighting method performance indicator system with quality,delivery,response,cost,technology and business as the first-level indicators;establish performance-driven key supplier incentive and elimination mechanism.After adopting the optimized key supplier development and performance management model,cross functional team can apply their expertise and fully identify risks among six modules via the optimized supplier audit form,during key supplier development.The key supplier is evaluated comprehensively,so that it can get rid of shortcomings: price orientation,evaluate the one-sided,and finally accurately develop the key suppliers that are in line with the company’s development.It can make the plan and verification of sample and process stability more systematically to go through PPAP and pilot production processes,thus providing guarantee for mass production.It enables AH to more comprehensively and effectively assess the performance of key suppliers,after apply the weighting method performance indicator system,and make correct incentives or elimination decisions based on assessment results per the incentive elimination mechanism.Through these improvements,AH has finally achieved a high-quality,competitive key supplier base.