Study On The Steel Structure Construction Supplier Management Of BS Company

Since 1990s, with the development of the Internet and E-commerce as well as the globalization of economy, all companies are facing growing competition from all over the world. In order to increase both the market share and the profit, efficiency and low cost should be adopted to meet the customers' satisfaction. Also, the previous "vertical - integration" does not agree with the current demands of the market development as the competition now is not between single enterprises but enterprise group. Therefore enterprise should, on the one hand, focus on its core product and capability to enhance its core competitiveness, and on the other hand, make full use of the external resources, such as outsourcing non-core products and services. In this way, it can unite with its suppliers to establish a supply chain of highly competitive and face up to the market competition together. The suppliers are the core of the supply chain, it is an important partner for enterprise to gain success. Thus suppliers management is becoming more and more important.As an international company serving the construction market with steel structure solution and itself the leader in this field, BS has been devoting in integrating its operating system efficiently. Among such integrating, establishing supply chain between the supplier end and the customer end is very essential. The end of BS's supply chain is steel structure erection. In order to increase competitiveness, BS outsources its erection work from its erectors. However, as the construction market environment is changed, cooperation intention from BS's erectors shrank and caused great problems, such as schedule delay, erection accidents, substandard erection quality, etc.. These problems bring great negative influence to BS's business.Base on the theories of supply chain management, suppliers management and supplier relationship management, we are researching the existing supplier management problems in BS and raising the main reasons for these problems: Inadequate systematic management theory under the supply chain environment; wrong orientation for cooperationship building; inappropriate system for general evaluation on suppliers. Also, we are offering direction and solution to BS to improve the erector management, including: establishing strategic cooperative partnership with the erectors and gain win-win situation; setting up a erectors general evaluation system and defining the weight of each index; redefining the management organizational framework, reducing unqualified suppliers, integrating purchasing network and appropriate competition, establishing an erector encouraging system.