A Research On The Evaluation Of Supplier Selection Of Company M For Production Parts

With the improvement of consumers’ requirements for the quality of passenger car and the diversification of overall demand,the automotive market has entered a diversified and personalized development stage.In order to maintain its competitive advantage and fulfill the needs of customers,automobile manufacturers continue to expedite the speed of upgrading of automobiles.The development period of new models and middle upgradation have been continuously shortened.The acceleration of vehicle upgrading and the demand for continuous upgrading of new cars after the launch provide the market space for the automotive industry,meanwhile,the automotive industry is also facing a variety of competition.Especially under COVID-19,there is no single main car maker can be avoided the impact.Many OEMs all over the world have shut down some factories.The COVID-19 has greatly disrupted the global supply chain.In order to increase car makers’ market share,automobile manufacturers put forward more stringent requirements to upstream suppliers,as more annual reductions,further technological innovation and improve overall service quality.Supply chain management is one of the key factor that contribute to a firm’s success.Supplier selection is an important strategic and operational function of supply chain management.By selecting the right suppliers,companies can save on material costs,increase profits,gain competitive advantage,and enhance end-user satisfaction.Traditionally,supplier selection process relies significantly on subjective judgment that is the price play a main role in supplier selection.Since the supplier selection process mainly involves the evaluation of different criteria and various attributes of suppliers,it can be considered as an issue as a multiple-criteria decision-making.However,it is complex to establish a decision-making process to assess priorities based on the input from different functional areas and all the stakeholders within the supply chain.Company M is a tier one supplier in automotive industry and headquartered in Toronto,Canada.The company specializes in the production of door hinges and door checkers and structural suspension parts.This research takes M company as an example,combined with the characteristics of the automotive industry and the characteristics of M company’s product,this research constructs a supplier evaluation criteria system which is appropriate for M company.Firstly,this research analyzes the current situation of M company’s procurement management and supplier evaluation and selection process,then raising the existing problems,that is incomplete supplier information,chaotic supplier classification and highly subjective judgment for supplier selection It is a price dominated supplier selection,frequent supplier switching and no long-term stable partners;In addition,this research makes a detailed cause analysis of the relevant problems raised;Then,the Kraljic matrix is used to improve the classified management of the purchased materials of M company and classify the suppliers accordingly;furthermore,the supplier evaluation criteria system of M company is constructed from the eight perspectives that is cost,quality,delivery capacity,service level,R ＆ D capacity and cooperation risk,and the weight is determined by analytic hierarchy process in terms of the important strategic production materials;Finally,the suppliers are evaluated and ranked as an application example analysis to provide a more scientific basis for M company’s supplier selection.