Study On Products Supplier Management For Dage Corporation

As the world develops into the 21 st century, global economic integration pattern has been formed with information technology into people’s lives. Differentiated, personalized customer needs to be increased speedily which product innovation continues beyond the limit of production. In this context, the modern enterprises in order to pursue an economic cost reduction and enhance their competitive advantage, have to take a various of defensive measures, particularly in subcontracting non-core production business to suppliers, which caused a significant impact on the raw materials product quality and the quality of the final consumption. Product supplier management thus becomes special attention to the earnings growth. The more competitive the market is, the more diversified consumer demand will have. It requires more individual commodity markets and customization features, and it becomes a trend that the modern market of multi-category product, small volume production of modern industrial chain business development require the supply chain between enterprises to be more quick and flexible to meet the needs of consumers. In the enterprise supply chain management processes, product suppliers have a more important role, product suppliers will directly affect the entire supply chain related businesses which is likely to complete the customer’s needs, so the supervision of product supplier becomes a key task to supplier chain, and it also makes further study that how to improve regulation of product suppliers, which is important and has a practical significance. Dage Corporation is the development, production and sale of X-ray inspection equipment, welding strength tester, dispenser, designed for printed circuit board(PCB) design and semiconductor industries, the main mode of production is high mix, low volume production.Papers understand and analyze the current situation on Dage Corporation supplier management at this stage based on theory of supplier chain management and enterprise management. Due to years of chronic illness finding in Dage Corporation,there are many problems, including supplier evaluation and selection process which are not because of system factors but due to vendor inventory management is not standardized, high-frequency product supplier quality issues is existing, supplier management classification system is unreasonable and the lack of vendor risk management. The cause of these problems are from a wide range that many enterprises in China also fail to realize that their presence in the supplier management have many problems in enterprises including the lack of internal supplier classification management and the deficiencies of risk awareness, as well as a external pressure from foreign companies stationed. On the basis of these problems, Dage Corporation put forward specific strategy of product in supplier management improvement. On the supplier selection process, Dage Corporation experienced a process of primary supplier selection, interviews, audits, final confirmation, tender selection, sample test verification; the establishment of Approved Vendor List, etc., to strengthen the aspects of the method and principles of supplier selection, Dage Corporation takes many different approaches to incent suppliers. Dage Corporation is now taking many efforts in risk management, through standardizing specification vendor selection step, strengthening the development of the principle suppliers; finding many methods on incentive of suppliers to strengthen supplier risk management by improving product supplier management. Dage Corporation proposed the new supplier relationship design. At the same time, the company puts forward countermeasures against Dage supplier management issues, including restructuring the organizational structure, strengthening supplier management process training, improving supplier management team performance evaluation, enhancing supplier information management. By improving the implementation of the measures, Dage’s supplier management performance has been significantly improved.