Study On Supplier Management Improvement Of Dongguan SIMOTEC

With China’s accession to the WTO and the development of the globalization of the world economy, the enterprises and factories in the region of the Pearl River Delta have grown rapidly, so, the competition in local and global market is becoming increasingly fierce. As a result, it become out-of-date and can’t catch the rapid development for the traditional model of supplier management, which believes in "price first". The enterprises, by themselves, can’t achieve the maximized benefit any more. They have to combine with the upstream and downstream enterprises, establish the supply chain mode with economic associated, business related and interdependence, and make full use of all the resources. Only in this way, these enterprises can adapt to the current environment of competition, and enhance the market competition, and seek common development in order to get the win-win or multi win.Dongguan SIMOTEC Co. Ltd is a local manufacturer that focuses on the parts and assemblies for office equipment. According to the customers’request, SIMOTEC provides product design, purchases materials from suppliers, fabricates the parts, and assemblies the final products. Therefore, the supplier management becomes the emphasis and difficulty for SIMOTEC.In this article, the current situation and the problems met in Dongguan SIMOTEC Co. Ltd’s supplier management are analyzed. And based on the theories of supplier evaluation and audit, supplier relationship classification model, supplier performance evaluation and incentive management etc., and combining with the actual situation of Dongguan SIMOTEC Co. Ltd, the company’s supplier management improvement program is built through reengineering the suppliers’ classification and grading management process, reengineering the suppliers’ evaluation and approval process, defining the comprehensive evaluation scheme to the suppliers’ performance and setting up the suppliers’ incentive system. At the same time, the strong guarantee to the implementation of the new supplier management plan is provided through the measures of changing the management institutes of suppliers and making the detailed implementation plans. Finally, the scientific system of supplier management is established, which will be more suitable for SIMOTEC.It is expected that the research result of Dongguan SIMOTEC Co. Ltd. on its supplier management improvement program could help other manufacturing enterprises on their supplier management, especially, having a good effectiveness of reference and inspiration.