The Selection On The Strategic Partnership Based On The Transaction Cost

Along the enormous development of productivity and the standing progress of technology, the global economic is accelerating in every sides, such as international trading , international finance , international investment develop hugely, production is collocated worldly, technology international and Globalization and Regional Economic Integration and so on have built the economic of the world into one organic unit. There is no one country can isolate from the world economic circle. Whatever the country likes or not, it is involved into the circle. Meanwhile relied on the power and resource of the corporation, it can not rapidly respond according to the changing market requirement. The corporation need to enforce the cooperation with the other member on the supply chain. The establishment on the cooperation partnership between manufacture and suppler is the key point of supply chain management and choosing the suitable supplier is the most important work, which will directly effect the benefit of every member on the chain.How to choose the most suitable supplier, which key points should be chosen, and choosing which method to evaluate the supplier are points the manufacture company shall focus on. Only to establish suitable evaluation system and use suitable method shall enforce the veracity of the evaluation and pick up the suitable supplier. In this way, both sides would exert their advantage fully and real the complementary advantage to operation together and enforce the whole supplier chain competing power on the market to reach the win-win result.The strategic partnership between the companies is the best form on the cooperation in 2 companies. The cooperation between 2 companies is not only in tactics operation, but also in strategic operation. In other word, both companies have same strategic target or plan, or the strategic targets of 2 companies have intersection. At the beginning two companies enforce the competing status and performance by all force which they can use for the complimentary on their strategy and integration on their culture. Recently along the OEM development, it is more and more important OEM supplier for company, and the relationship between OEM supplier and the company can develop to strategic partnership.Strategic partnership has many characters , such as equality , spontaneity, enti-forcement, harmony. It mainly builds into the company with its (OEM) supplier. Normally it is developed by costumers with the cooperation of its (OEM) supplierDuring the supply chain management and OEM, the company gets more and more external exchange and the trade cost raising which results the total cost raising. Therefore reducing trading cost, raising profit is the internal reason for building company development strategy partnership.After the company and the (OEM) supplier built the strategic relationship, from the whole trading process, the relation is good for communication and understanding for both sides, which reduces the reaching cost on trading target; at the same time, the trusty and promise from the relation also reducing every risk on the deal, even there is conflicts on the deal, it is possible to solve by negotiation. In other sides, the communication between the strategy partners ensure the certainty on the deal in a period which is good to control the trading cost caused by the uncertainty. At the same time, the understanding from both sides is good to reducing the trading cost caused by limited sense. The long-term cooperation shipment can restrain the opportunity behavior on both sides in main parts, which ensure control on every sides of the trading cost.It is very important to establish and develop the strategy cooperation partnership relation. To build this relation is not only the requirement on the company enforce itself competing power , but also the customers requirement. Establishing the relation, the company can use external resource fully, advance the core competing power, raise the customer satisfaction, reducing over cost, develop the efficiency of the research, reduce the research cost, fit the change of market.Trading cost is one reason to build strategy partnership relation. Trading cost includes the cost on researching trading target , negotiation , prompting, making and supervising the agreement, and so on. There are 3 main reasons which has effected on it, such as the exclusivity on the assets, uncertainty and frequency. In every kind of products which the company need, one product is big amount and high special which demand fluctuates small, the other one is big amount but current which demand fluctuates huge. For this two kinds of products or services, if still using the former marketing allocation mechanism to get, since the uncertainty and specialty of the trading, the company would spend more cost on the trading than it organizes the manufacture. But if the company operates the production, the company would not only detract its resource, but also raise the organization and management cost, which is not good option.Therefore, the company should look for a new resource allocation method, which is in the middle of market purchase and operation by itself, which makes minimum the extra cost which is not on the main operation. According to the resource allocation method, the strategy partnership is one resource allocation mechanism between market purchase and vertical integration, which has the character from both sides. The company through this mechanism could use the minimum cost to get the resource and at the same time the well cooperation between the relations also makes sure it benefit from the resource.To choosing suitable cooperation partner is the starting point for realizing successfully the strategy partnership. Those are process for realizing:1. analyzing the company needs, set the targets for choosing strategy partnership.2. research the market information3. primarily filter the cooperation partner4. get tough with the choosing targets, and get more information5. make scores for the targets according to the information,As the following standards:1. searching complement on the strategy2. choosing partner according to the complement3. searching the company which has similar culture4. searching suitable reliable partner5. turning away the potential escaping partner6. avoiding the'elephant & ant'union7. evaluating the difference on the operation policy of potential partner8. evaluating the difficulty on the communication because the potential partner has different cultureDuring the process on the choosing strategy partner, the company should take into account many sides of factors. To easily make decision, we use blur general critic method to revaluate the un-quantization factor and finally score the choosing target.We have summarized some general factors for manufacturing company:1. trading cost2. the ability on the cost control3. the ability on the strategy setting4. the integration on the company culture5. the willing on the cooperation6. the ability on the techniques7. the operation condition 8. the control on the operationAnd we use the factors to evaluate the matrix R, and then calculate the percentage of every class level factors A. Finally after calculation, we could get the vectors of the supplier.Using the general evaluation result as standard to analysis all potential targets, then according to the maximume principle, we can choose the target which has the highest score as potential strategy partner. And at the same time, we should record the information of other candidates for the future development tracing, as the standby supplier.