The Management On The Suppliers Of XET Company

The competitiveness among enterprises has become more and more severe, making the enterprises encounter unprecedented challenge and can no longer survive through operating alone. As a result, enterprises have to do self-adjusting, especially improving their supplying & marketing management, implementing the supply chain management by establishing collaborative or congregating relationship with their partners, to form "a dynamic alliance based on win-win principle "and to achieve a synergy effect.Management on suppliers is a critical step for guaranteeing up-steam supplies and maintaining good quality and achieving purchasing cost savings. In manufacturing industry, the purchasing cost usually accounts for 40%-60% of the product sales, which means reducing purchasing cost brings much greater contribution to the margins and profit of an enterprise than other possible measures.The significance of management on suppliers got great attention paid by the developed countries early in 1940's. Through practice and theoretical exploration in the past six decades, many excellent achievements have been attained on the supplier management, especially on the two aspects, i.e., the selection of suppliers and supplier relationship management. We devote the discussion mainly on the applications of these two aspects in the enterprise practice.XET is a mid-term size pharmaceutical enterprise, which demands more than30 types of raw materials from about 100 suppliers. In pharmaceutical industry, product quality is crucial for success. The product quality is determined by the quality of raw materials, non-good quality pharmaceutical product can even result in jeopardize the lives of consumers. Therefore, we cannot perform materials management involved in pharmaceutical operation only in economical perspective, Instead, we must include the supplier managing into comprehensive management. Since the XET has experienced the great vicissitude of the pharmaceutical industry, its supplier management has the typical features of the industry, serving as an epitome. I hope the outcomes or proposals arising from the article will bring some positive contributions to construction and development of the supplier management of the pharmaceutical industry of our country.The main characteristics of this paper are as the followings:Firstly, it focuses on analyzing the requirements and characteristics of supplier management of a mid-term size pharmaceutical manufacturer in a comparatively systematic way and focuses on the application research of the supplier management to the practical operations, which makes itself different from the characteristics situation of other existing theories i.e. many theory schools available but every one is fragmentary.Secondly, it probes into supplier selection methodologies by combining qualitative and quantitative methods such as linear weighted method, cost operating method, hiberarchy method etc. Although XET achieved improvements following the regulations of GMP when selecting their current suppliers, XET fails to put the whole supply chain into account because it limits its perspective within itself and the employed selecting method is not comprehensive and not scientific enough.Thirdly, how to foster and develop trust is another study priority of this paper. It comes up with some ideas on this study priority using the achievements of foreign scholars In order to achieve the integration of the whole supply chain andto optimize the performance of the overall supply chain, which requires coordination among each parties involved. The coordination is based on trust among each parties in the supply chain. However, few publications are exploring the designing and constructing trust among parties in the supply chain.