Research On Supplier Management Optimization Of BAIC Motor

With the rapid development of globalization and the dramatic increase of domestic auto industry,the competition among automotive companies becomes more and more intense.Under this condition,automotive companies focus on enhancing the core competitiveness and put it in the first priority.Not only the management improvement should be implemented,but also the supply chain and the supplier ability should be enhanced,in order to strengthen company competiveness indirectly.Since more than 60%of auto parts come from suppliers,the improvement of supplier ability could increase the product quality and reduce the cost significantly.We even can say that the quality of supply chain could directly determine the competitive results under such intense automotive market.This reviews relative concepts from supplier relationship management,supplier performance management,supplier quality management and supplier optimization management.Relationship management is the method,performance management is the core point,quality management is the basis and optimization management is the breakthrough.This lays a solid theoretical foundation for the building of BAIC core competitiveness.This paper studies the BAIC supplier and analyzes the BAIC status through the model of Potter five forces and the tools of four quadrant classification.According to the factors of quality and cost,the BAIC supplier competiveness is analyzed.Results show that it is low.The number of BAIC suppliers is not suitable for the competitiveness of products.Until now,BAIC has 482 suppliers.However,the ability of each supplier is quite different,which increases the cost of supplier management obviously and reduces the possibility of profits increase.The reform of BAIC supplier chain should be conducted.Supplier optimization is to re-evaluate existing suppliers according to their own situation and choose the suppliers again.What we expect is to get a supplier resource library that can promote BAIC competitiveness.This paper focuses on the evaluation indexes.They are determined as seven factors,such as manufacture,quality,technology,service,price,innovation and delivery.Then analytic hierarchy is used to determine the weights of each index.Through the analysis of these 7 factors,the objective results are got and the improvement model of BAIC suppliers is built.After that,through the model application in seven transmission suppliers,suppliers are classified into three categories,A,B,C,and the supplier optimization strategy is optimized according to this model.