The Study On Company Z’s Supplier Selection Risk Evaluation

With the rapid development of information technology and the acceleration of economic globalization, the competition between enterprises is increasingly fierce. By introducing supply chain management, suppliers that in the supply chain upstream, the core enterprise as well as retailers and distributors downstream achieve the complementary resources through close cooperation, competitiveness has been further improved. As soon as the source of supply chain risk suppliers will have a negative impact on the entire supply chain, and even lead to supply chain disruptions. For a long time, supplier management has been the weak link in China’s manufacturing industry, although many companies introduced a supply chain management thinking, but the lack of understanding of supplier risk and with the recent supplier risk events, supplier risk assessment has been focus to many enterprises.Based on the research of Z, that is a large domestic engineering machinery manufacturing company, we can found the problems in the company supplier risk management and in theselection of suppliers,so this paper designed programs for supplier risk assessment. First, the paper combined the status of the company supplier management and issues with the research of some scholars,set out from the supplier’s product quality risk, delivery capability risk, service risk and long-term external risks, the paper designed the risk assessment system contains four indicators and16secondary level indicators for Z, and use Entropy Method determined the right levels of secondary level indicators; Then, combined with Entropy-Dual basis of risk assessment methods, and use this method in Z Company’s selection of suppliers, and calculated the dimension of supplier risk, provide a frame of referencefor Z in theselection of suppliers; Finally, this paper made somemeasures and suggestions for Z company’s supplier managementThrough this study, Z Company’s supplier management departments have a intuitive understanding of their supplier risk, so as to provide a theoretical basis for decision-makers in theselection of suppliers and in the risk management for suppliers, it also provide a frame of reference for such enterprises, and have more practical significance.