Strategic Supplier Selection Method Study Of Company B

Purchasing is an interaction between company and the suppliers. The competitiveness of a company is influenced by the performance of purchasing actions and the suppliers performing level. With the globalization trend enhanced in21st century there are enormous companies developing the business overseas including the purchasing activity. The international companies realized that it is crucial to research, select and develop certain numbers of strategy suppliers so that to ensure the global business competitiveness, especially to develop the suppliers with the ability to provide both local and global business. Automotive industry is one of the industries with high dependency on suppliers and supply chain and with high international business structure. The technology level, quality control, operation and profitability competence of suppliers and the whole supply chain with tier2and3suppliers integrated performance influence the whole automotive industry. Therefore study and establish a system and module to evaluate the supplier base and guide the strategic supplier selection could improve the core competitiveness of purchasing. Meanwhile the systematic strategy supplier evaluation and selection module is an efficient and fair platform for suppliers and business development which could bring the win-win future.Company B is one of the big tier one automotive industry supplier offering the advanced technology innovation, high quality and reliable system products. The globalized purchasing systems in company B established abundant good supplier base and related supply chain. Such purchasing resource have been ensuring company B new technology and product development, purchasing material cost control, global business development. Company B has been paying high focus and investment on business in China including automotive business. Consequently it is important to find an efficient solution on selection of strategic supplier in China out of current large supplier base. This thesis analyzed the purchasing system character of company B and integrated with automotive industry machining type of product supplying market status in China. Further on this thesis established the strategic supplier evaluation and selection module based on AHP theory. Application of the strategic supplier evaluation and selection module on some existing suppliers shows an efficient result of the module. Therefore the core competitiveness of company B could be greatly enhanced.