Case Study Of Supplier Performance Evaluation Andoptimization Of MGT Company

2015 is the particularly stressful year for textile industry. According to the data statistics from the customs till last Nov, Chinese textile and apparel exports amounted to $257 billion with 5.8% decrease. One of the reason is the national economic downturn in Europe and the United States, even the decline in oil price could not stimulate consumer consumption. Retail in Euro is facing the rapid changing and tough business environment by losing market in Russia and Ukraine. China economic slowdown is also part of the reasons, previously the appreciation of Chinese Currency and the gradually disappear of demographic dividend drove the cost rising which pushed the order transfer internationally. However the productivity did not grow in the same pace with the rise in labor wage, how to avoid the possibility of damage to the completed relationship over years between importers and vendors by the short-sighted behaviors because of too much pressure from the cost an margin, how to improve the performance by improving the productivity has become our top priority.Take the supplier performance evaluation of American Importer MGT Company as the case study background, the new supplier evaluation system is established by analyzing the current supplier performance evaluation situation and existing problems. Starting with the learning and study about the previous supplier evaluation research work, and the introduction of MGT company, the defects of MGT company’s current performance evaluation system are able to be detected mainly like too narrow supplier selection scope, lack of the comprehensive evaluation system, too vague evaluation index, and lack of the incentive mechanism etc. Through questionnaire survey and SPSS software to calculate the collected data, MGT company’s supplier performance evaluation system is built with 6 major indexes including: quality control, cost of price, performance capability, technical ability, level of environmental protection, financial situation. Using Analytic Hierarchy Process to establish the evaluation h ierarchical structure model, and further determine the weight of each index through the expert scoring method, then the new performance evaluation system is set up by referring to the study of the supplier evaluation theory and the integration with the present practice of MGT Corporation. In the case of cargo return from supplier WFY, the investigation and a series of remediation process is carried on based on the new performance evaluation system along with the new performance evaluation conducting. Last but not the least, the optimization strategies are proposed such as optimizing supplier selection process, establishing supplier database, refining supplier grading management etc. The study would provide some reference to the sourcing company like importers for similar case of supplier performance management.