Study On Supplier Selection And Evaluation Of SMD Steel Trading Corporation Considering Risk Factors

Iron and steel industry is one of the important industries supporting China's national economic development.With the deepening of economic reform,iron and steel trade shows a declining trend and the trading volume falls rapidly,easily resulting in trade disputes in the industry.As the most active subject in the supply chain in this industry,iron and steel trading companies plays a key role in linking the iron and steel buyers and suppliers and are the first batch of organizations which perceive and sense the turbulence in the industry.Different iron and steel trading companies have made different plans for development,but all these companies have to go through the same business procedures,which include the selection and evaluation of suppliers and control of trading risks,as well as reasonable management of corporate supply chain.All iron and steel companies hope that suppliers can share benefits and withstand risks together with them through considering the overall picture and interests in the industry.Management of supply chain refers to management of suppliers and the emphasis is on the evaluation and selection of suppliers.Therefore,in addition to the attention to the operation-oriented results,iron and steel companies should also improve their ability to assess and select suppliers.Moreover,they should conduct in-depth research and lay emphasis on this field,so as to constantly improve their management efficiency in supply chain.Based on supply chain risk theory,supply chain risk management theory,supplier selection and evaluation theory,this paper takes SMD Company as an example and conducts research on supplier selection and evaluation for iron and steel companies which are under supply chain risks.This paper first introduces the current situations in iron and steel industry and the trading market,and the operation situation of companies in the industry.Meanwhile,it also analyzes the current situation and existing problems in the trading business and supply management of SMD Company.This paper builds an evaluation index system based on three risk factors,including environment factor and capability factors of iron and steel suppliers and the cooperation factors,determines index weight through adopting Delphi method and makes comprehensive evaluation of suppliers,so as to build a supplier evaluation system for SMD Company.Then,it adopts multi-index weighting method to conduct an empirical analysis in line with the current situation and supplier selection situation of SMD Company and calculates the evaluation score of several supplier samples,so as to draw a conclusion of evaluation standards.At the same time,it also makes a comprehensive evaluation of all accepted suppliers of SMD Company and classifies the suppliers into various categories,so as to identify the strategies for further cooperation.It fully proves that this index system is effectively feasible for iron and steel trading companies.Finally,in order to strengthen the management and avoid the risks arising from the cooperation with the suppliers in the supply chain,it is necessary for iron and steel trading companies to establish a supply chain risk aversion mechanism to evaluate the internal performance of suppliers,external risks and cooperation risks in the supply chain.