The Tactics Of Supplier Management

The competition among the enterprises overwhelming intensively in 21 st century is supply chain, what is the decisive factor to determine the enterprise succeeding or failing. To administer the supply chain in a company, supplier management is the foundation. Supplier management is the supervision technique of the enterprises what initiates to seek the improvement and prevention of the product quality in the timely manner by insight the supplier production, quality and supply chain. To pursue doing the things right at the first time is every administrator’s goal. There’s no good quality without a fascinated supplier management. For example, the company would be likely dozens of quality issues if the quality of the materials supplier delivered is fluctuated. It’s demonstrated by practicing, for which supplier management is the priority and feasible option to cope with the issues of product quality, for example, supplier production or the company design issues etc. To prevent error and ignorance nowhere to hide, supplier management is facilitated and the kernel of business operation.This thesis took the example of A dairy company’s quality issues to demonstrate the supplier management is essence on the quantity improvement. A dairy company product deterioration and its subsidiary S dairy company who Melamine overrating in the milk would be resolved through the supplier management. The key is to manage the supplier to do the things right at the first time is the fundamental to avoid the similar issues repeatedly.During the studies, the quality issues that arose from consumers were determined the issues of supplier management, i.e. the traders of farm land, family farm houses and the traders of milk collection station. The relish plants that the farm land should have, forage, cereal, and the equipment as well as the size of farm land, are the determination of how the quality the milk will be. Family farm houses operation stability, the risk protection of the investment, the suppliers of the forage, the measurement criteria the milk collection station used and the vehicle to deliver and so on, should well organize and manage.The basic principles of supplier management are to make all things right at the first time and it’s indispensible in the supply chain. Base on the issues discovering from the case, the thesis come up with couple of resolution for reference. First of all, select the qualified suppliers, training all them are acquainted with the local, international and industrial criteria in order to provide quality milk. Second, control on the supplier quality of daily operation, incoming production and outgoing quality overview as well as thefeasible and measurable criteria are on book. Third, assess the supplier base on the criteria on book. And the forth is to review the supplier regularly to keep them pacing with the company’s technology. Finally, perform MRP and order fulfillment management to plan the company’s requirement base on the market capability. Never pursue to expanding the factory in size with lose. Continuous innovation is the heart of the company grows. The company will be weak and even fade without new product to catch up the changes of the consumers. Keep innovating and upgrading the products to pace the development of the changes of the consumers is the engine to propel the company’s business and benefit the society.