A Farm Machinery Company Supplier Selection

The development of the global economy has intensified market competitiveness and made the mode of production and operation transform more rapidly. Facing fierce market competition, both supplier and downstream enterprise in the supply chain must be cooperated closely. They are not the previous interests-based competitors, but the present partners moving towards to a win-win relationship. Now many manufacturing companies put more emphasis on the selection of their suppliers. To optimize the selection of suppliers has a very important significance for the manufacturers’ strategic goals in the long term.A Agriculture Machinery Company is a company engaged in the manufacture of large and medium-sized tractors. For the adaptation of company development and the increase of the core competence, Company A has made more efforts to outsource the components and parts for production. Therefore, Company A should build a practical supplier evaluation index system and make use of some scientific and effective methods to find out the blue-chip suppliers.The first part of this paper is to introduce A company’s industrial background and situation and to overview the domestic and foreign research status on supplier selection. In addition, the paper briefly analyze the relevant theories and models of supplier selection, and then some problems lying in supplier selection in Company A are detailed expounded. Then the paper classifies the suppliers of Company A through the application of AHP, and builds the index system of evaluation for supplier selection based on the classification. At last, this thesis establishes the supplier evaluation organization and improves the process of supplier selection in Company A which is divided into three stages, that is, preliminary, review and final evaluation. Each stage has its own selection model which forms a three-stage integrated evaluation model. In the end, the paper uses a true example in A Company to prove the practicability and feasibility of the supplier selection system based on this model.