Empirical Study On Supplier Incentive Strategy To Improve Raw Material Quality In Hanew, Inc.

Today, quality of productshas become the focus that the society is paying close attention to.But in supply chain, if an enterprise wants to improve quality of products, itmust improvequality of raw materials at first, it’s very important to motivatetheir suppliers to improvethe quality, especially for manufacturing enterprises.The empiricalstudy is on supplier incentive strategy to improve raw material quality inHanew, Inc., which is designing and manufacturing devices and sub-systems for opticalcommunication industry. The quality of raw materials has become a major concern andconsideration in the quality management of Hanew, therefore, a plan for supplier incentivestrategyhas beendrafted and implemented to improve the quality of raw materials insuppliers’ side.After the plan implemented, a questionnaire method was adopted in the study to get thesatisfactionof the plan from the suppliers and internal quality employees.Then SPSS wasused to analyze the data from the satisfaction, including reliability analysis, validityanalysis andcorrelation analysis. The study validatessupplier incentive strategy couldinfluencequality of raw materials, and provides some suggestions of supplier incentivestrategy for Hanew to improve the next stage plan for supplier incentive strategy.The study also could be as references to improve quality management in supplier chain formiddle and small manufacturing enterprises.