Discussion About Incentive Mechanism In The Supplier Management System Of Manufacturing Enterprise

Currently economy of China is in a quick development stage. The main power of China economy is manufacturing. To improve the competition strength of manufacturing, the key way shall be to improve the Supply Chain Management (SCM). In recent years, theoretic studies related to SCM have been developed sufficiently, even overmuch. But as SCM draws extreme attention in business practices, it make academic field get higher and higher interest to study it. In SCM practice, one of the elements is the Supplier Management System of Manufacturing Enterprise. Because of the uncertain relationship between enterprises in supply chain, to well maintain a stable, long term strategic cooperation relationship, it is necessary for core enterprise to establish effective incentive mechanism of Supply Chain. Former study and practices accumulated some incentive modes like: trust, price, information, reputation, order, wash-out, design-together for new products and new technology and organization.This thesis firstly reviewed the study on SCM, Performance Evaluation and incentive mechanism. Then starting with the request of Performance Management of both manufacturing enterprise and supplier, discuss the new incentive modes.Start with the cooperation relationship of enterprises in supply chain, point out the differences between Supply Chain Strategic Cooperation and Traditional Cooperation, and raise the existing problems. This is the precondition and necessity for enterprises to establish incentive mechanism; it is also the base of analysis of this thesis.Proceeding with the basic concept of incentive mechanism, analyze the object target of incentive mechanism. Every enterprise has its own performance management target, and the popular performance management tool is balanced score card. To analyze the requirement of suppliers from the BSC view point, then analyze the possible incentive mode is the main method of this thesis.By the analysis of detailed parameter of Supplier BSC and possible incentive modes, find that besides the traditional incentive modes, there are also some new type incentive modes such as providing technological support, directing supplier process improvement and providing training. By case study, instruct that the tentative practice displays positive effect.The tentative practice with new incentive modes has gotten positive feedback. Hope that the new incentive modes raised by this thesis can provide beneficial reference for current SCM practice. Also hope the topic raised by this thesis can provide useful reference for further study in future.