Research On BS Company’s Vendor Evaluation And Selection On The Basis Of Vendor Categorization

Vendor Management is one of the key jobs in supply chain management, which becomes the second profit source for present corporations and attracts more and more attention. Most of the companies have more than one supplier. How to manage suppliers? How to select and evaluate vendors? Both have now been important questions for companies seeking development. This paper explores an appropriate way of supplier management for bamboo tableware distributors, basing on the management of vendor categorization and vendor selection and evaluation. This paper researches into ways to improve supplier management efficiency and set up proper vendor selection and evaluation system in the backgrounds of global economic down-turn and increase of manufacturing cost in China, so as to gain new competitive power. By analyzing vendor management status inside BS Company, problems in vendor management were detected, and then looking into solutions of vendor categorization and vendor selection and evaluation; Kraljic model, specialists evaluating method and AHP methods were used in during this process. The research results shows that companies shall categorize suppliers and use scientific vendor selection and evaluation system to choose appropriate vendors to improve profit-making ability of supply chain and of the distributors. Companies’ operation cost will be cut down by categorizing vendors and adopt different management skills; Sustainable supply can be assured by using scientific vendor selection and evaluation system. This paper will offer a good example for similar companies to improve their vendor management efficiency and effectiveness.