A Case Research Of Supplier Selection Methods Supporting Product Innovation

The competition in 21 century is far more than located among enterprises, but located among supply chains. As a new form of competition, The supply chain management has been high approved by the domestic and foreign companies. For theory research, the supplier selection and performance evaluation is important to maximize benefit, the stability and the efficiency of the supply chain. For enterprises, the supplier selection and performance evaluation means stabilize their own advantages, establish successful cooperation partners and inspire the development of the venders. Therefore, the supplier selection and performance evaluation is one of the important points in constructing a supply chain.At the same time, with the fast development of high technology and fierce change of manufacturing environment, the market competition intensified day by day, the uncertainty and customerization of users' needs increased, products life cycle shortened, and product complexity rose constantly. In the face of such environment, the companies don't only pay attention to the resource integration inside and capacity innovation, but also to the cooperation between companies. The manufacture and supplier in the supply chain take the cooperative innovation mode on the basis of trusting each other, and the supplier's involvement in manufacture's technology innovation is of very importance. The supplier's involvement in manufacture's innovation appeared initially in Toyota, and then it aroused the attention from western countries. American enterprises, in the late 1980s and the early stage of the 1990s, introduced this approach, for example, Chrysler obtained very good performance in new products development, and shortened products development period and reduced the cost on development and manufacturing. However, with the rapid growth of our manufacturing enterprises and increasingly participating in the global competition, the supplier's involvement in manufacture's technology innovation will be more and more common, and this paper is based on the background above.At first, this paper introduces basic theory of supply chain and SCM, then on the base, introduces relative concept and theory about supplier management supporting product innovation. Finally, this paper shows the status of vendor evaluation and selection in Lingyun machinery manufacturing Ltd., then concludes and evaluates its existing system. Then in view of current shortage, this paper establishes the indexes system of vendor evaluation supporting product innovation, uses analyses hierarchy process to appraise suppliers. This approach makes the model overcome subjectivity to some extent, and makes it more practical.