Supplier Consolidation Solution For FSP Company

With the deepening of global economic integration, regional competition is become global competition. Especially the impact of economic crisis on the manufacturing sector brings a huge crisis and challenge to the manufacturing industry. To survive and make further growth, a business has to cut the manufacturing cost at the same time maintain the product quality. Thus, it becomes extremely important for a business to improve the supply chain efficiency. Meanwhile, to enhance the competitiveness in the market, more and more companies improve their supply chain flexibility and expand their product lines through mergers and acquisitions. All of those show that the competition among enterprises is mainly reflected by the competition in the supply chain. Supplier management, as the most important part of supply chain, its importance is self-evident. How to implement the supplier selection, evaluation, management and integration,is a key issue for every enterprise.The thesis first briefly introduces the current research status and its importance of the suppliers'consolidation, then describes the characteristics and current status of optical module manufacturing industry. After the introduction of the profile of FSP Company and the status of its supplier management, the existing problems will be discussed. This thesis focuses on the analyses of supplier chain management of FSP Company after its acquisition of FT Company, to find some of the main reasons for these problems base on the theory of supplier management. And according to FSP strategy for supply chain optimization, the SWOT analysis of FSP's supplier integration will be conducted. Based on those backgrounds, this thesis explores supplier integration solution from the introduction, selection, assessment of suppliers, set up a global sourcing team, ERP system's support and other aspects to integrate various supply resources, improve operational efficiency and ultimately strengthen the core competitiveness of the business. Finally, the implementation and future improvement of supplier consolidation will be summarized.