Study Of Supplier Development And Management In Automotive Parts Companies

In the modern globalized time, companies in automotive industry choose to outsource its non-core processes. For most raw material and parts are outsourced, the number of companies in automotive part industry grows largely. At the mean time, OEM which is one of the members of supply chain also chooses to transfer the market pressure to part companies. Besides, the upstream suppliers of automotives part companies (i.e. rubber, steel, etc.) escalate prices frequently, which make automotive part companies facing pressures from both upstream and downstream. To search for new profit source, part companies have to think much of supplier management which is regarded as the last profit source for companies. But the actual situation of supplier management in local part companies is depressing, there are many problems existing. So to smartly respond to the market competition, it seems very important for companies to improve supplier management greatly.Here in the paper, the author first summarize the current study about supplier management in domestic and abroad, then expatiate the definition and classification of suppliers, and the features of supplier system in automotive industry. Besides, the basic flow of supplier development, basic content of supplier management and the method of process analysis are introduced.Based on above, one automotive part company S is the case be analyzed. Except its history, author introduces the current status of S company in five aspects including supplier development, supplier audit, performance assessment, escalation management and quality control, etc. Then according to the concepts of process management and continuous improvement, divide the processes of supplier development and management in S company into three periods:new supplier choose, PPAP approval, mass production. Take the process method in ISO/TS16949as our tool to analyze and recognize the four main problems in S company. For the four problems, respectively illustrate them in details and define corresponding corrective measures and control strategies. Finally, systemically summarize the new supplier development process and management content.