Research On Shoe Supplier Selection Strategy Of Z Corporation

Footwear industry is a typical labor-intensive industry. Today, the shoe FOB price is getting lower and lower, with the increasingly rising of Chinese labor cost, footwear companies in China is loosing their cost advantage gradually. The living space of footwear companies especially the small and medium-sized companies are getting narrower and narrower. Many small and medium-sized companies bankrupted, and some owners of private footwear companies escaped with money. Many international high-end brands transfer their production from China to Vietnam, Indonesia and other Southeast Asian countries gradually, however, the cost leadership company – Z Corporation still produces their shoes in China mainland, and they don’t have the plan to decrease in the production share in China in a short term.Today, the competition between corporations is not the competition between one to another, but between supply chains competition. As a leading fashion company, Z Corporation was known as fast fashion. Why the supplier selection and evaluation strategies of Z Corporation get successful? I have taken part in the whole process of designing the new supplier selection and evaluation system, and witnessed the implementation effect of the 1st year. This thesis will focus on the previous & new shoes supplier selection strategies of Z corporation to analyze which kind of core competitiveness that China’s small and medium-sized footwear companies should have, so it can be used for reference for China’s small and medium-sized footwear companies, and help them make progress.Firstly, this thesis introduces the background of Z Corporation and its supplier selection and assessment method and system, briefly analyze the related concepts of supply chain theory. With the analysis of supplier selection requirements and standards, build up the new supplier selection and evaluation system. Analyze the existing supplier selection method, and redesign the new supplier selection and evaluation scenario. Use the new effective supplier evaluation method and incentive mechanism to control the selected suppliers dynamically, and test the implementation effect of new supplier selection method and incentive system. With the implementation of new supplier selection and evaluation strategy, the result is pretty good, and it enhanced the core competence of Z Corporation. Finally, make a summary of new supplier selection and evaluation strategy, and point out which way and how to improve the strategy constantly.