Management of wood-based panel, plywood and MDF suppliers (development, evaluation and relationship management,sourcing and procurement) Part 2

How to strengthen the relationship with wood-based panel, plywood and MDF suppliers, continuously reduce the procurement cost and improve the procurement efficiency is a matter of great concern for every enterprise. Through the management of wood-based panel plywood and MDF suppliers, improve the level of cooperation between wood-based panel plywood and MDF suppliers and the purchaser, and establish strategic partnership between the purchaser and the supplier, which is the ultimate goal of the purchaser in the management of wood-based panel plywood and MDF suppliers. Therefore, this paper conducts empirical research based on the current situation of wood-based panel plywood and MDF supplier management, so as to enrich the content of wood-based panel plywood and MDF supplier management, and further expand the theory of wood-based panel plywood and MDF supplier management.

1.3 The important role of selection of wood-based panel, plywood and MDF suppliers for enterprises

Wood-based panel plywood and MDF suppliers are the source of the entire supply chain. From the perspective of the purchaser, the purchaser can ensure the normal production order only if it has excellent upstream wood-based panel plywood and MDF suppliers to provide production materials. The quality and price of the products produced by the purchaser are directly affected by the quality, delivery date and price of the products supplied by the wood-based panel, plywood and MDF suppliers. From the perspective of supply chain, whether the materials provided by wood-based panel plywood and MDF suppliers can meet the customer’s requirements for quality, price and product diversity ultimately determines the market competitiveness and market share of the purchaser’s products, and also plays a key role in the core competitiveness of each node in the supply chain. The important role of wood-based panel plywood and MDF supplier management is embodied in the following aspects:

1.3.1 The management effect of wood-based panel, plywood and MDF suppliers directly affects the inventory and production order of the purchaser

In the past, buyers often purchased materials in large quantities and at irregular times. This old procurement model lacks science. On the one hand, it increases the inventory of the purchaser, increases the inventory cost, and occupies a large amount of funds of the purchaser. On the other hand, it may lead to the shortage of materials and affect the normal production.

1.3.2 The purchaser can obtain external market information through wood-based panel plywood and MDF suppliers

Purchasing personnel can collect external market information through wood-based panel plywood and MDF suppliers, including but not limited to material prices, alternative wood-based panel plywood and MDF supplier resources, new technology and other information. This information is very important for the purchaser’s new product development decision.

1.3.3 Scientific management of wood-based panel, plywood and MDF suppliers can create profits for buyers

Purchase cost accounts for a large share of the production cost of the purchaser, and the purchase amount accounts for 35% – 60% of the sales volume,. Therefore, through effective management of wood-based panel plywood and MDF suppliers, enterprises can save a lot of costs. The management of wood-based panel plywood and MDF suppliers contributes to the improvement of enterprise performance. In this sense, the effective management of wood-based panel plywood and MDF suppliers can increase profits for buyers. A small reduction in procurement costs may greatly increase the profit of the purchaser.

2、 Process construction of evaluation and selection of wood-based panel, plywood and MDF suppliers

2.1 Analysis of development and selection process of wood-based panel, plywood and MDF suppliers

To establish a long-term supply chain partnership based on trust, cooperation and open communication, we must first analyze the market competition environment. The purpose is to find out which product markets to develop supply chain partnerships are effective. We must know what the current product demand is and confirm whether it is necessary to establish a supply chain partnership. If a supply chain partnership has been established, we should confirm the necessity of changing the supply chain partnership according to the change of demand, so as to confirm the necessity of evaluating and selecting wood-based panel plywood and MDF suppliers.

2.2 Establishment of evaluation and selection process for wood-based panel, plywood and MDF suppliers

2.1.1 Determine the evaluation criteria of wood-based panel, plywood and MDF suppliers

The index system for comprehensive evaluation of wood-based panel plywood and MDF suppliers is the basis and standard for enterprises to conduct comprehensive evaluation of wood-based panel plywood and MDF suppliers. It is an index reflecting the different attributes of the complex system formed by the enterprise itself and the environment. In order to enable the selected indicators to comprehensively, objectively and truly reflect the general situation of wood-based panel plywood and MDF suppliers, the following principles should be followed when establishing evaluation indicators:

Systematic principle: the evaluation index system must fully reflect the current comprehensive level of wood-based panel plywood and MDF supplier enterprises, and include all aspects of the enterprise’s development prospects.

Comparability principle: the setting of the evaluation index system should also take into account the ease of comparison with other domestic index systems.

Principle of operability: The evaluation index system should be flexible enough to enable enterprises to flexibly use the indicators according to their own characteristics and actual conditions.

Combination of qualitative and quantitative indicators: the combination of qualitative indicators and quantitative indicators can describe the candidate wood-based panel plywood and MDF suppliers. Any preference for certain indicators will directly affect the final selection result.

According to the survey data and the conversation with some enterprise managers, there are many problems when Chinese enterprises evaluate and select wood-based panel plywood and MDF suppliers. When enterprises select wood-based panel plywood and MDF suppliers, there are too many subjective factors. Sometimes, the selection of wood-based panel plywood and MDF suppliers is often determined based on the impression of wood-based panel plywood and MDF suppliers, There are still some personal components in the selection of wood-based panel plywood and MDF suppliers. The selection criteria of wood-based panel plywood and MDF suppliers are not comprehensive. At present, the selection criteria of enterprises are mainly focused on the quality, price, flexibility, punctuality, lead time and batch of wood-based panel plywood and MDF suppliers.

2.1.2 Establishment of evaluation team

The enterprise must establish a group to control and implement the evaluation of wood-based panel, plywood and MDF suppliers. The team members are mainly from the departments that have close cooperation with the supply chain, such as procurement, quality, production and engineering. The team members must have team spirit and certain professional skills. The evaluation team must be supported by the top leadership of manufacturers and wood-based panel plywood and MDF suppliers at the same time.

2.1.3 Identify potential wood-based panel plywood and MDF suppliers

Through various public information and public channels, including the active inquiry and introduction of wood-based panel plywood and MDF suppliers, professional media advertising, Internet search and other ways, the contact information of wood-based panel plywood and MDF suppliers is obtained, and the selection intention of wood-based panel plywood and MDF suppliers is transmitted, and potential wood-based panel plywood and MDF suppliers are contacted through channels.

2.1.4 Preliminary selection of wood-based panel, plywood and MDF suppliers

The analysis of feedback information from wood-based panel plywood and MDF suppliers can evaluate their process capability, process stability, resource reliability and comprehensive competitiveness. Although all the materials collected in the preliminary investigation are basic, they are very important. When we first contacted with wood-based panel plywood and MDF suppliers, I think our most concerned question is whether wood-based panel plywood and MDF suppliers are capable of completing our products. I think this is crucial. If wood-based panel plywood and MDF suppliers are not capable of completing our products, then everything is unnecessary. Therefore, it is also important to investigate the capabilities of wood-based panel plywood and MDF suppliers. If a man-made plywood and MDF supplier does not have the Internet, or has no fixed address, such man-made plywood and MDF suppliers will cause great trouble for future communication, but also indicate that the management of the man-made plywood and MDF supplier is very backward, and must be carefully considered.

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