Benign competition is an effective way to maintain market order. For supplier management, the introduction of benign competition mechanism can promote suppliers to continuously optimize product quality, service level and price level, compete with each other, and choose the best procurement, so as to supervise each other and form a benign supply and demand system. In the process of supplier management, mutual trust can be established and a set of effective monitoring measures can be established. Once the supplier has some problems or signs, it can immediately urge the supplier to improve, thus improving the integrity of cooperation between the two parties.
Performance appraisal is an important part of supplier management, and supplier's product quality, price and delivery punctuality are the three criteria for evaluating suppliers. In the actual supplier selection, we should pay attention to cost, consider product quality, delivery and other factors, and then coordinate supplier performance information, so as to achieve the survival of the fittest, so as to shop around and quickly choose high-quality suppliers.
Generally speaking, supplier management is a new management mechanism to improve the relationship between buyers and suppliers, and it is also a channel to continuously improve the efficiency of enterprise procurement management and enterprise performance. When there is a problem in the supply chain, it may affect the whole enterprise chain. If an enterprise can absorb the concept of supplier management well and apply it to practical work, it is possible for the enterprise to see the improvement in profit and customer satisfaction, and then improve its core competitiveness.