Chapter I Introduction
1.1 Research Background and Meaning
With the rapid development of modern information technology and economicglobalization, bags commodity centers in China are becoming more and more mature.Driven by bags & luggage exhibitions in Hongkong and Mainland China, manyforeign customers visit China frequently and are familiar with the bags & luggagemarket in China. Some foreign customers have even set up offices in China, dealingwith procurement and merchandising. At the same time, with the mature developmentof international trade, the domestic bags factories attach great importance to theimprovement of their own business quality. Many bags factories have set up their ownforeign trade department, directly receive orders from foreign customers, and activelyparticipate in international bags & luggage exhibitions held at home and abroad. Thishas greatly increase the chance for foreign customers to do business directly withdomestic factories. These factors lead to more and more transparent prices of bagsproducts. As the foreign trade company is getting the price difference as their mainprofit, their profit is sharply reduced, and the survival and development space isseriously threatened.
By facing the situation of the foreign customers are familiar with the production areaand buying price of bags in China market, it is very important for foreign tradecompanies to select the correct OEM bags suppliers. A good OEM supplier canprovide competitive prices, and also bring competitive advantages to foreign tradecompanies in terms of delivery time, quality, service, cooperation willingness, so thatit makes it possible for the foreign trade company to win orders from customers underthe situation of the market price is transparent and the customer is likely to cooperatedirectly with bags factories. Foreign trade companies should give full play to theiradvantages in familiarity with the local supply market and choose properly their OEMsuppliers, for their survival and development to create greater space.
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1.2 Research Methods
Firstly, this paper studies the current situation and trend of supplier selection throughliterature research method, then analyzes the problems and causes of supplierselection in DH foreign trade company through case study method, and finally usesqualitative and quantitative analysis method to analyze the data of DH company forthree consecutive years from 2015 to 2018. By using the analytic hierarchy process(AHP), this paper pairwise compares the importance of supplier selection indicators,builds a matrix and establishes a supplier selection model based on AHP. The specificresearch methods used are as follows:
(1) Literature research method
By looking up books, professional journals and other information, on the one hand, Ican understand the relevant theoretical knowledge of supplier selection, researchstatus and development trends at home and abroad, on the other hand, I also know thedevelopment trends of the industry. These can provide a solid theoretical foundationfor the writing of this thesis.
(2) Qualitative and quantitative analysis
By using the analytic hierarchy process (AHP), the hierarchical structure and judgment matrix are established, and the related factors of the potential suppliers inthe candidate list are evaluated and ranked in combination with qualitative andquantitative evaluation. Then, the reasonable selection decision is made to select thebest supplier for the company.
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Chapter II Literature Review
2.1 Basic Concept of OEM
OEM, its full name is Original Engineer Manufacture. Literally, OEM meansmanufacture on assignment or licensing manufacturing. It means that the brandcontroller controls the R&D and sales channels of new products through its ownunique "core technology" while the actual manufacturing work is entrusted to otherenterprises (OEM suppliers). In the process of cooperation, the relationship betweenthe two sides is brand owner and OEM manufacturer [18].
Worldwide, business activities under OEM management mode are common. Forexample, when a manufacturer gets an order and it is difficult for the manufacturer todeliver the goods according to the stipulations but does not want to lose customers, hewill buy the same products from other suppliers and stick his own brand on theproducts to deliver them; and for example, some department stores which do not havetheir own production capacity will buy all the goods from outside suppliers. Therefore,the sales channel, market position of the brand side and the production advantages ofthe manufacturer jointly create a high-quality image of the product, thus achieving awin-win situation for both sides [29].
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2.2 Supplier Evaluation Criteria
2.2.1 Research Status of Supplier Evaluation Criteria
As early as 1966, Dickson took the lead in building a comprehensive evaluation indexsystem for suppliers. Dickson collected data from about 300 purchasing managersthrough a survey conducted by the American Association of Purchasing Managers.After statistical analysis, 23 common evaluation indicators were obtained. Afteranalyzing the importance of these common evaluation indicators, we get theimportance ranking [37]. Since then, Weber has collected the frequency of 23common evaluation indicators proposed by Dickson through the analysis of relevantliterature on supplier evaluation and selection, so as to reflect the importance rankingof the indicators [43]. The results show that Dickson and Weber are basicallyconsistent with the importance ranking of common indicators.
The research on supplier evaluation index system started relatively late in China. In 1997, the supply chain research group of Huazhong University of Science andTechnology (HUST) found that when evaluating and selecting suppliers, domesticenterprises mainly considered quality, delivery, price, variety diversity, batchflexibility and so on.
Since then, with the continuous change of economic environment and the continuousimprovement of people's cognitive level, scholars at home and abroad have furtherstudied and discussed the basic evaluation indicators of suppliers based on theprinciples of systematicness, scientificity, flexibility, growth, practicability andmaneuverability from different perspectives [33]. The price index system had beenconstantly revised and perfected. Goffin believed that the supplier evaluation indexsystem should also include quality records, implementation level, TQM awareness,financial stability, timely production capacity, environmental standards, total cost,social responsibility and other indicators [24]. In China, Bai Shizhen and others usedthe method of principal component analysis and entropy to study the selection ofspecific indicators in supplier evaluation [01].
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Chapter III Case Description............................14
3.1 Introduction to Industry Backgr.............15
3.2 Company Profile..................................15
Chapter IV Problem Analysis.......................................22
4.1 Main Problems of OEM Bags Purchase of DH Company............................. 22
4.1.1 Late Delivery..............................22
4.1.2 Low Quality..............................23
Chapter V OEM Bags Supplier Selection Strategy of DH Company.......................... 29
5.1 Re-establish A Cross-functional Department Evaluation Team.................... 29
5.2 Replan the Process of Supplier Evaluation and Selection..............................30
Chapter V OEM Bag Supplier Selection Strategy of DH Company
5.1 Re-establish A Cross-functional Department Evaluation Team
Supplier evaluation and selection is a key section during the whole procurementprocess. Supplier performance not only greatly affects the work efficiency ofpurchasing department, but also affects the work of other departments such asproduction department, quality inspection department, design department, R&Ddepartment, shipping department, finance department and so on. In the whole supplychain, suppliers have direct or indirect contact with the above departments. Excellentsuppliers can not only save many troubles in the work of these departments, but alsoimprove their efficiency, thereby enhancing the efficiency of the whole company.Therefore, DH company should set up a cross-functional departments supplierselection working group, and supplier evaluation and selection should consider andadopt the views of the above departments.
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Chapter VI Conclusion and Research Prospects
6.1 Conclusion
reference(omitted)
