Analysis On Supplier Relationship Management For Amphenol Tel-Ad Ltd

With the global economic integration,the rapid development of computer network and communication technology,especially the popularity of the Internet,the scope of logistics activities,logistics speed has entered an unprecedented stage of development.At this stage,the competition among companies has been replaced by the competition among the supply chains to some extent.At the same time,the globalization of competition makes the supply relationship more complex and the management of supply relationship more important.In the manufacturing industry,the reduction of manufacturing cost is almost to the limit,and it is difficult to make big breakthrough on the increasing of sales revenue.Therefore,the optimization and refinement of supply chain is most likely to become another source of profit for growth companies.Supplier relationship management(SRM)is an important aspect of procurement management and supply chain management.Correct handling of supply relationship plays an important role in upstream supply chain efficiency.However,the relationship is not as simple as having or not having.A company's supply relationship can be regarded as a relationship spectrum.It is not easy to establish and manage the relationship correctly for each different type of supplier.The main business of Amphenol Tel-ad is to provide "High Mixed & Low volume" rapid manufacturing services for cable assembly and power distribution cabinets in the industrial and medical fields.For handling this kind of customer orders,company has developed its supply chain which can provide a wide range of materials with small quantity in a very short time.But also caused company's high purchasing cost,huge supplier base and no SRM with most of the suppliers.Therefore,how to optimize the company's supplier base and establish a suitable relationship with suppliers has become an important aspect of improving the competitiveness of the company.Firstly,this paper introduces the basic situation,operation status and problems of Amphenol Tel-ad company.Then,it studies the problems existing in the supplier relationship management and analyses the causes of these problems,such as: too large supplier base,neglect of supplier relationship management,single purchase cost comparison method to determine order distribution,the formalization of supplier performance appraisal system.After that,the solutions are put forward: based on the classification of purchasing,supplier-based optimization provides core supplier groups,proposes strategies for establishing supplier relationship,supplier performance management and supplier motivation to ensure the efficient development of the relationship,and supplier contract management provides legal protection for the relationship.Finally,we are going to evaluate the supply chain efficiency after the implementation of supplier relationship management based on aspects of total cost of ownership of key materials,rate of delivery on time,procurement management cost and supply risk so on,to summarize the improvement effect.