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The Diagnostic Study of Supply Distribution Business about LY Company

Author: ChenQin
Tutor: FanXia
School: South China University of Technology
Course: Business Administration
Keywords: Supply chain management Key supplier performance CustomerSatisifaction Value-added in supply chain Sustainable development
CLC: F274
Type: Master's thesis
Year: 2013
Downloads: 23
Quote: 0
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Abstract


The article did a diagnostic study of supply distribution problems about LY Company.Since the end of2011, LY’s key supplier (ACE Company) has become worse and worseperformances that mainly reflected three aspects: timeliness of delivery, delivery quanlity andservice quanlity. Worse supply performance of key supplier brought LY Company of seriousoperating consequences. If the situation isn’t controlled and reversed, it will directly affectLY’s r survival and development, which is the background and significance of the thesisresearch.First from a poor supply and distribution, the thesis analyzes the reasons of key supplier.Next, it found out the root caused reason that is poor operating management of LY Company.Then the thesis based on ideas and methods of the supply chain and diagonsed the prolems ofLY’s operating.The diagnostic thinking is: To solve the poor supply of key supplier, the key is toimprove LY supply chain management. First the measure is effectively the managementmechanism to the suppliers, such as performance appraisal and unqualified supplierselimination mechanism. Then most fundamental measure is to integrate the supply chain forsolving the operaing problems by optimizing work processes and mining the value of supplyand distribution activities, in order to gradually regain the core position in the supply chain.So it can get a solid foundation for LY’s sustainable development.For key supplier performance evaluation, the thesis used the marketing mangementmatrix tool to analyze and diagnose the effcetiveness. At the same time, the tool made usknow that the performance evaluation isn’t the ultimate goal. So the strategic alliance is moreconducive to achievment of supply goals. To achieve the strategic goal, LY Company must tomake himself an attractive organization, that is, through the supply chain value-addedactivities. Thus LY Company is able to achieve its dominant position in the supply chain.About key supplier performance evaluation, the thesis disigned the performanceevaluation index system, where its specific indicators and their weights are based on customersatisfaction questionnaires and statistical analysis to set given, so as to make the performanceevaluation more focused and improve the current supply and distribution problems better.Another object designing customer satisfaction questionnaire is to get a dierection forcontinuous improvement of performance.At last, the thesis also proposed security programs for the solving measures.

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