Paper on Supplier Selection and Management 1 Analysis of Supplier Selection under Supply Chain Management
Abstract of papers on supplier selection and management
Abstract: In recent years, the idea of supply chain management has been rapidly developed and cited, and supplier selection is an important part of supply chain management. Therefore, it is of great theoretical and practical significance to strengthen the research on supplier selection. This paper expounds the supplier management under the supply chain, analyzes the methods of supplier selection, and puts forward the implementation steps of supplier selection.
Supplier selection and management of paper content
[Keywords:] supply chain management supplier selection evaluation
Since 1990s, with the development of information technology and the acceleration of economic development, consumers' requirements for products and services have become higher and higher. In order to cope with the personalized needs of consumers and the increasingly fierce competitive environment, most enterprises often invest their limited funds and energy in core competitiveness, leaving non-core competitiveness business to suppliers. Choosing the right supplier can effectively reduce production costs, improve profits, ensure product quality, meet the individual needs of customers, ensure the smooth progress of production and improve the product development level of enterprises. Therefore, supplier selection is a very important issue, not only to meet the needs of customers, but also to maintain the sustainable competitiveness of enterprises.
First, supplier management under supply chain management.
The continuous progress of science and technology and the continuous development of economy put forward the requirements of high product quality, high service level, short delivery time and low cost for enterprises. All these require enterprises to respond to the market quickly and meet the individual needs of customers. Supply chain management is one of the important ways to meet this challenge and enhance the core competitiveness of enterprises.
Different from the traditional relationship between suppliers and enterprises, enterprises under supply chain management emphasize the long-term and stable cooperative relationship with suppliers and advocate the joint efforts of both parties to achieve their goals. They pursue information sharing, risk sharing and interdependence. They choose suppliers not only on the basis of price, but also on the basis of quality service, technological innovation and product design.
Second, the method of supplier selection
1. Qualitative selection method
Qualitative selection is mainly carried out through bidding, intuitive judgment and negotiation. Bidding means that all bidders bid according to the bidding conditions put forward by enterprises, so that enterprises can compare bidding conditions and choose suppliers. There are two forms of bidding: open bidding and designated competitive bidding. Intuitive judgment is a method to evaluate and select suppliers by asking buyers and investigating suppliers. The negotiation selection rule is to determine several suppliers with better supply conditions first, and then negotiate with them separately to find out and determine the best supplier.
2. Quantitative selection method
Quantitative selective development mainly includes procurement cost method and activity-based cost method. Procurement cost method is mainly a method to select low-cost suppliers by analyzing and comparing the sales price, procurement cost and transportation cost of various suppliers. Activity-based costing, also known as ABC method, is a method to decompose the procurement process into activities, find out the cost of each activity through the analysis of each activity, and thus determine the best supplier.
3. Selection method combining qualitative and quantitative methods
Common qualitative and quantitative selection methods mainly include neural network algorithm, analytic hierarchy process and data envelopment analysis. Network neural algorithm is a method to select suppliers by using artificial neural network to establish a comprehensive selection evaluation model close to human thinking mode. This method is complicated, difficult to master and needs a lot of data support. Analytic Hierarchy Process (AHP) is a method of dividing the thinking process into layers, and then comparing and testing each layer to select suppliers. Data Envelopment Analysis (DEA) is actually an application of linear scaling model, which solves the problem of multiple inputs and multiple outputs.
Third, the implementation steps of supplier selection
1. Conduct market research and analysis.
Market research and analysis mainly focus on customer market and purchasing market. At present, customer demand is a kind of personalized demand, and multi-variety and small batch are its main characteristics. Therefore, enterprises must first determine their own needs through customer market research. On this basis, through the investigation of purchasing markets, we can find out which product markets are effective for developing supply chain cooperation, determine whether it is necessary to restore supply chain cooperation, and thus confirm the necessity of supplier selection.
2. Determine the target of supplier selection
The reasonable choice of suppliers is to better achieve the enterprise goals, but the selection goals are different in different situations. Therefore, we must set substantive and practical goals. In most cases, reducing procurement cost is the main goal of supplier selection. However, under different circumstances, high-quality service, high-quality product quality and fast delivery time may also become the target of supplier selection. In a word, establishing the goal of supplier selection is the basis of supplier selection.
3. Establish supplier evaluation index system
The prompt of supplier evaluation index is the specific standard and basis for selecting suppliers, and it is also the key to selecting suppliers. The index system is different according to the different suppliers and the specific market environment. But generally speaking, product price, supply capacity and quality are the main indicators of supplier selection. The product price does not represent the lowest price, and the second is the competitive price, which is the most competitive price determined on the basis of comprehensive consideration of delivery time, quantity, quality and after-sales service. Supply capacity refers to whether the supplier can guarantee the supply of the required quantity of products. The product quality should be moderate, too high quality needs higher price, and the quality will affect the reputation of the enterprise.
4. Establish a supplier selection evaluation team.
Supplier selection involves the production, sales, technology, service, finance, logistics and other departments of the enterprise. Therefore, the selection of suppliers is not only a matter for the purchasing department, but also a matter for the purchasing department, the financial department, the production department and the sales department to participate in the discussion and decide collectively.
5. Identify candidate suppliers
On the basis of market research, analyzing potential suppliers is one of the main ways to determine candidate suppliers. In addition, it is also an important way to select candidate suppliers from existing suppliers through the inquiry of purchasing personnel from commercial websites, industry magazines and other media.
6. Comprehensive evaluation to determine qualified suppliers.
Different suppliers may have certain advantages under different supply conditions, and the selection of suppliers must be considered comprehensively. The bid evaluation team shall make comprehensive evaluation according to the index system, determine qualified suppliers, and report the bid evaluation results to the higher authorities. After the approval of the superior competent department, small batch trial sales will be carried out first, and then it will be approved to become a cooperative supplier after passing the test.
Four. Concluding remarks
Supply chain management is a new management idea that has developed rapidly and been widely cited in recent years. Supplier selection is an important part of supply chain management. However, the evaluation index system and evaluation method of supplier selection still need to be improved, so the establishment and improvement of supplier evaluation index system and supplier night evaluation method will be the focus of future research.
Documents and materials on supplier selection and management
Liu Bin. Using supply chain management to improve the core competitiveness of enterprises [J]. China Circular Economy, 200 1.
[2] Bing Wang, Xu, Zheng Hongtie. Procurement management based on supply chain [J]. Business Research, 2002.
[3] Clock,,. Research on supplier evaluation index system and evaluation model [J]. Quantitative economic research, technology and economy, 2003.
[4] Ding Chuanyong, Zhang Xingchen. Supplier evaluation and selection based on principal component analysis [J]. Modern Logistics, 2007.
The second part of the thesis on supplier selection and management: the practice and application of influencing factors in supplier selection.
Abstract of papers on supplier selection and management
The operation and production of enterprises need timely material guarantee and supply. How to shorten delivery time, improve product quality, reduce purchasing cost and improve after-sales service, and respond to material demand quickly and effectively, so as to ensure production and promote the steady improvement of enterprise benefits? This paper analyzes and discusses the conditions that qualified suppliers should have, which has a good reference and guiding significance for the centralized procurement of materials in state-owned coal enterprises, especially how to correctly select suppliers in the process of bidding and purchasing large equipment and bulk materials.
Supplier selection and management of paper content
Keywords: suppliers; Selection factors; Research and application
China Library ClassificationNo.: F 123 Document IdentificationNo.: A DocumentNo.:1673-291X (2012) 30-0225-02.
The operation and development of enterprises need to be efficient and fast, and the improvement of effective node efficiency is an important factor to determine the profits of enterprises and realize the future development strategy. In the process of organizing production, logistics supply chain management, as one of the important nodes, plays an important role, and the most important thing in scientific management of supply chain is the selection and management of material suppliers. In view of the trend of domestic large coal enterprise groups adopting the unified and centralized procurement mode of materials, combined with the continuous practice and application in their work, the following is a discussion on how to better select suppliers.
First, the importance of scientific selection of suppliers for safe and efficient production of enterprises
From the perspective of the whole supply chain, the scientific selection of suppliers is very important for the whole material procurement work, which is mainly reflected in the following aspects:
1. Strengthening supplier management helps to ensure product quality and reduce procurement costs. First of all, from the perspective of professional procurement, the scale procurement of enterprises now basically adopts competitive procurement. Although competitive procurement has many advantages, there are also some problems. Mainly in order to get more profits and win more orders, some suppliers tend to reduce the quality of their products, especially for some products whose performance cannot be verified before use, which will affect the performance of products, and then affect the quality of end products, and even lead to safety disasters and accidents, which will greatly harm the interests of enterprises. Secondly, from the cost point of view, the supplier's cost is also a part of the enterprise's procurement cost to some extent, and the increase of supplier's cost will inevitably transfer the additional cost to the next link. Furthermore, from the perspective of production quality, the supplier's product quality is an important part of the next step of safe production, the basis of reproduction, the supplier's quality management system and the next step of safety management system. Therefore, it is of great significance to strengthen the management of supplier selection and choose the most suitable supplier, so that suppliers can maintain the competitive state of improving product quality and reasonably reducing costs in the market competitive environment, which is of great significance to ensure the procurement quality and reduce procurement costs.
2. Supplier selection management helps to improve its agility in responding to planning requirements. Zero inventory management, JIT (just-in-time procurement) and other procurement models are adopted by more and more enterprises, and gradually penetrate into the logistics field and management field. In terms of procurement, enterprises pay more attention to the agile ability of suppliers to meet the planned demand quickly while hoping that the delivery time is getting shorter and shorter. In order to improve agility, suppliers at all nodes in the supply chain must pay attention to cultivating their core competitiveness and make full use of their competitive advantages to meet and adapt to the planned demand. Therefore, only by strengthening the management of supplier selection and establishing an appropriate cooperative relationship with suppliers can we improve the agility of suppliers' response to planned demand and finally ensure the production demand of enterprises themselves.
3. Supplier selection management helps to build enterprise competitiveness. In the current procurement process, enterprises are increasingly faced with the pressure of shortening delivery time, improving product quality, reducing costs and improving service. Effective selection and scientific management of suppliers can reduce inventory costs, reduce procurement costs and improve the plan realization rate, thus shortening the procurement cycle, making procurement flexible, and then quickly responding to the material needs of enterprises and alleviating the pressure of procurement and supply.
From the above analysis, it is not difficult to see that in order to break the traditional original purchasing concept, management system and old operation mode, reduce purchasing cost, improve the quality of purchased materials and improve the after-sales service level of purchased materials, we must recognize the importance of supplier selection management in material procurement and supply, and also design and rebuild the original purchasing management system.
Second, the basic conditions and elements of selecting qualified suppliers
1. Qualification requirements for products provided by suppliers. The state has strict standards and requirements for the production of various materials, especially for the safety of mining materials. In the process of material procurement, it is necessary to ensure that the materials used in each mine meet the quality standards and certificate requirements, which is not only the starting point for the supply of specialized coal material procurement companies, but also the most basic requirement for products. For example, the coal mine safety signs, national compulsory 3C certification, production license, special equipment manufacturing license (TS certification), explosion-proof certificate, compulsory verification certificate of measuring instruments and various inspection reports and other related qualifications and certificates of purchased materials should comply with national regulations. If the products provided by suppliers fail to obtain the corresponding qualifications according to national or industry standards, the purchasing department is not allowed to purchase, the warehouse is not allowed to accept and use them. Suppliers who provide false qualifications should be rejected by one vote for their fraud and be included in the blacklist of supplier management. Those who have no business contacts and cause losses and potential safety hazards to the production of enterprises will be investigated for responsibility according to law.
2. Meet the quality requirements of production and use. Quality is a very important factor, the choice of quality should be based on the actual needs of customers, not the best quality is the most applicable. When selecting materials, enterprises with general economic conditions sometimes do not choose the products with the best quality and the highest price in China, but choose according to the comprehensive factors such as the equipment and material consumption quota of their own units, that is, buy the products that are most suitable for the quality requirements of their own units at the lowest price, and maximize the input-output benefits by selecting products of different grades. As a coal mine, the quality of mine products is generally required to be durable, especially the maintenance and replacement times of underground equipment and accessories should be reduced as much as possible to increase the service life, so as to ensure the improvement of mine efficiency and safe production, so quality is also one of the primary factors to be considered when selecting suppliers.
3. Fair and reasonable purchase and supply prices. Although price is not the most important factor, it is an important part of procurement cost and production cost. Good quality and cheap goods are what enterprises want most when purchasing, so the price is still a very important indicator for selecting suppliers. In addition to bidding, competitive negotiation, bidding negotiation and other forms, strict restraint measures should be formulated for suppliers. For example, in the process of signing a purchase contract, it should be clearly required that the price of materials provided by suppliers must guarantee the lowest supply price of products of the same quality in the same region or nationwide. If the supplier violates this promise, he will pay the price for his honesty and deception, and for this reason, he will agree on a certain percentage of liquidated damages. This is an important means for the two sides to establish a mutual supervision and trust mechanism.
4. Excellent pre-sale, in-sale and after-sale services. When choosing suppliers, service is also a very important consideration. For example, the selection of large-scale equipment, the promotion and application of new products and technologies require suppliers to provide services such as preliminary consultation, feasibility demonstration and comprehensive benefit evaluation; Due to the complex and changeable geological conditions in coal mines, once the heading face and mining area change, it is inevitable that products will be returned or delayed, and suppliers need to understand and cooperate with the adjustment of on-site production operations; In the process of equipment installation and acceptance, the supplier shall provide on-site technical support. In the process of after-sale use of equipment, in order to prevent operation failure, suppliers are also required to provide rapid and timely spare parts supply to resume production as soon as possible. And regular product return visits after the use of important equipment and bulk materials should also be included in the scope of after-sales value-added services. Some services like the above should be evaluated as important indicators in the process of selecting suppliers, especially in the process of bidding and purchasing.
5. Subsequent guarantee for inventory consignment. If the supplier's inventory policy can realize consignment storage, that is, the supplier provides a certain amount of common equipment and accessories inventory in the user's own warehouse, which is managed by the user, which is convenient for production to collect at any time and saves procurement time. The settlement with suppliers at the end of the month according to the actual consumption situation is not only conducive to timely solving the sudden failure in the use of equipment, but also saves the procurement cost and ensures the 24-hour continuous safe operation of the mine. At the same time, the business model of supplier replenishing inventory at any time and remotely managing inventory is also a future development direction of supplier's modern sales model, and it is also an effective basis and means for suppliers to provide value-added services to customers and establish long-term good cooperative relations with users.
6. Specialized R&D and production capacity of suppliers. When selecting suppliers, we should also focus on their production scale and operational strength, including registered capital, sales performance, assets and liabilities, cash flow and other indicators reflecting suppliers' ability to resist market risks. We should have a professional product research and development team to ensure the advanced technology and perfect quality management service guarantee system in the same industry.
In short, in the process of modern procurement business, the correct choice of suppliers is becoming more and more important for the production, operation and future development of enterprises, and has become an important strategic bargaining chip for enterprises to enhance their market competitiveness. Establishing a standardized, scientific and orderly supplier selection management mechanism can not only save a lot of procurement funds for enterprises, but also improve procurement efficiency and realize win-win and long-term cooperative relations between all parties. We are convinced that a complete and feasible supplier selection management system can better achieve the strategic objectives of enterprises, further improve the competitiveness of enterprises, enhance the comprehensive management level of enterprises and meet the requirements of the rapid development of modern enterprises.
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