Research On Supplier Selection Optimization For Private Brand Of Retailer L

In a rapidly changing market,competition is becoming more and more fierce,more retailers choose to introduce the products with their private brands to obtain the higher profits and achieve differentiation.Private brand is when the retailer authorizes the production of suitable suppliers,either general manufacturers or branded manufacturers.However,retailers need to select appropriate suppliers according to their private brand positioning,at the same time,evaluate the suppliers.Choosing high-quality suppliers can not only ensure timely delivery,but also can ensure good quality,reduce purchase cost,improve profits,enhance brand image also customer loyalty.Retailer L is the second largest DIY supermarket in North America,with over 2000 stores.Its sourcing departments all over China,Southeast Asia,Mexico and Europe.As one of the multinational purchasing giants,retailer L has maintained a steady growth in the sales of its private brand products since the establishment.However,in the era of VUCA,due to the impact of the epidemic,tariffs and other factors,retailer L’s private brands have faced a series of problems in the past two years,such as rising costs,declining profits,product quality fluctuations,extended delivery time,unsatisfied after-sales service and so on.Supplier is an important link in the supply chain,the level and ability of suppliers are directly related to the smooth and efficient of the whole supply chain.Therefore,it is of certain practical significance to study how to choose appropriate private brand suppliers for retailer L to achieve sales goals.Based on retailer L,firstly,this paper teases the existing selection status of private brand suppliers.Secondly,invite top leadership for interview,it is concluded that the four problems of retailer L after analysis the content of the interview,including opaque of private brand information,imperfect supplier evaluation system,the lack of supplier relationship maintaining,the lack of rewards and punishment mechanism.Then based on the relevant theories of supplier management,supplier selection,retailer L needs to carry out the classified management of private brand suppliers,meanwhile utilize AHP to fix the value of selection indicators,and setup reward and punishment measures.Finally,combined with the characteristics of the retailer L itself,the optimization scheme of retailer L’s private brand supplier selection is discussed:establishing supplier information sharing mechanism,building the evaluation index system,strengthening partnership,introducing positive and negative incentive mechanisms.The purpose is to help Retailer L to achieve a scientific supplier selection system,a perfect supplier evaluation system and reasonable supplier management system.Thus,to achieve the reduction of purchase cost and win-win cooperation.