Research On Supplier Management Strategy Of SV

SV is a leading player of domestic In-Vehicle Infotainment manufacturer, which used series of supplier management procedure including Supplier Development Process, Supplier Evaluations System and Lifecycle Management from the original shareholders Siemens. Along with the vigorous development of automotive electronics industry in China, SV’s business is expanding dramatically, gradually growing into a multinational enterprise from localization. However, during this period, SV is facing many challenges and problems on supplier management such as a mismatch between supplier resources and firm’s business, sub-standardized materials, stubbornly high supplier numbers, poor delivery flexibility, low inventory turnover, messy payment tern management, less cooperative willingness, and weak supportive strength etc. In order to solve these problems which are caused by suppliers, it is urgent necessary for SV to improve its supplier management strategy.On the basis of theories of Supply Chain Management and Supplier Management, this thesis makes investigation and research on SV’s supplier management status, analyzing the different requirements of supplier management between automotive electronics industry and traditional consumer electronics industry. After that, this thesis proposes a new supplier management strategy method by which combines materials Activity Based Classification Model with Kraljic supplier management theory. The method involves Material Classification Model of ABC Model and Kraljic Purchasing Portfolio Model, evaluation criteria and calculation methods in these models, and supplier management strategy making for various materials. Then the author solves those problems of supplier management mentioned above by putting the method into enterprise practice.