Research Of Raw Materials Supplier Management Of H Company

With the rapid development of market economy, the competition among enterprises is continuously accelerated. Cost control becomes an important factor to gain the market advantage, with the management of raw materials suppliers its essential part. Therefore, studying the management of the relationship with the suppliers and finding out management means and methods are significant subjects. By studying the supplying situation of H Company, this paper aims at its raw materials classification, management of the supply market and raw materials suppliers and other actual situations to make an analysis. It also finds out the main problems existing in the company’s supplier management through description and deeper explanation of specific data and points out the necessity and concrete measures to improve the supplier management, thus improve the management ability and eventually enhance the company’s competitiveness.This paper analyses the shortcoming of the H Company’s supplier management, by means of raw materials "Supplying Segmentation", suppliers "Subdivision Matrix", and analytic hierarchy process to resolve linear program, taking the supplying risk and financial importance of all kinds of raw materials into consideration, divides the company’s suppliers into four categories. This paper suggests building up relationship management with suppliers and optimizing the subdivision and management of suppliers according to the four categories, improving and optimizing the procedure of developing and choosing suppliers, as well as the viable strategy of supplier management. What’s more, this paper provides many targets and measures according to the inspiration and control on suppliers by performance evaluation. Meanwhile, some other factors that may influence the supplier management of H Company and areas requiring improvement, such as dynamic mode of supplier management, establishing strategic alliance with suppliers, supplier management electronic and management methods within company, are listed in this paper.