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Open Access Library Journal

2018, Volume 5, e4976

ISSN Online: 2333-9721

ISSN Print: 2333-9705

DOI:

10.4236/oalib.1104976 Nov. 26, 2018 1 Open Access Library Journal

Research on the Optimization of After-Sales

Parts Supply Chain Management Based on

Supplier Management

—Taking SAIC General Motors After-Sales Parts as an Example

Zhongxiu Yu

, Yameng Chen

SAIC General Motors Corporation Limited, Shanghai, China

Shanghai University of Engineering Science, Shanghai, China

Abstract

Nowadays auto parts industry supply chain management is becoming a

booming industry which is full of opportunities and challenges. As a

network

node of supply chain, the reasonable optimization of the supplier not only af-

fects the after-sales parts operating costs, operating performance, competitive

strategy and the future development, but also affect the entire supply chain

logistics cost, logistics strategy and competition strategy. Supply chain man-

agement research for Supplier management can effectively guide the auto

parts manufacturers of the business environment, foster strengths and cir-

cumvent weaknesses, assess the situation, seize the moment, and gather more

intense market competition in the future always maintain their advantage.

Therefore, deeply studying the related theory of automobile after-

sales spare

parts supply chain, combined with the status quo and development trend of

the automobile and accessories market in China, then optimization the basic

model and operation strategy of automobile customer se

rvice parts supply

chain in China, has a very important practical significance. Based on the cus-

tomer service parts supply chain of SAIC General Motors, we analyze the op-

eration characteristics and the status quo of this company; analyze the exist-

ing problems in the supply chain of the company’s after-

sales parts. Firstly

due to the historical reasons, and the lack of overall concept of the supply

chain, supplier order delivery rate is low, information feedback is not timely,

inventory pressure is high, and supply chain management system is imper-

fect. Secondly the incomplete information and inaccurate predictions lead to

unreasonable warehouse storage; inventory turnover rate is low. Finally, the

market demand and the information are not shared caused low company’

accessories sales and high proportion of transport costs. In the aspect of op-

How to cite this paper:

Yu, Z.X. and

Chen

, Y.M. (2018)

Research on the

Optimization of After

Sales Parts Supply

Chain Management Based on Supplier

Management

—

Taking SAIC General

Motors After

-Sales Parts as an Example

Open Access Library Journal

: e4976.

https://doi.org/10.4236/oalib.1104976

Received:

October 9, 2018

Accepted:

November 23, 2018

Published:

November 26, 2018

8 by authors and Open

Access Library Inc

This work is licensed under the Creative

Commons Attribution International

License (CC BY

4.0).

http://creativecommons.org/licenses/by/4.0/

Open Access

Z. X. Yu, Y. M. Chen

DOI:

10.4236/oalib.1104976 2 Open Access Library Journal

timization design, firstly we analysis and improve reasonable management of

suppliers, inventory structure, major items of operating costs and existing

problems in SAIC General Motors. In the optimization design,

we firstly

analyse reasonable management of suppliers in order to reduce costs and in a

timely manner to meet the market demand; Then the information integration

of the parts system can scientifically synthesize in

formation to reasonably

predict sales volume, satisfy inventory optimization and strengthen coopera-

tion with suppliers; Finally, adjust the structure of spare parts inventory ac-

cording to the contact with the supplies; improve the company’

s inventory

turnover rate, to make the whole supply chain inventory structure more rea-

sonable accessories, so as to reduce the company’

s operating costs, improve

customer satisfaction rate and satisfaction.

Subject Areas

Supply Chain Management

Keywords

Supply Chain Management, Aftermarket Parts Supply Chain,

Supplier Management

1. Introduction

1.1. The Research Background

In recent years, with the development of China’s economy, people’s concept of

consumption and after-sales service has gradually risen, which poses a new chal-

lenge to the scope and quality of social and enterprise services. At present, vari-

ous advanced management experiences are integrated with each other to pro-

mote enterprises to continuously strengthen their own management capabilities

and service efficiency. The realization of this process requires enterprises to

strengthen supply chain management to enhance their core competitiveness.

The rapid development and continuous updating of supply chain management

required enterprises to have a systematic under-standing of its fields, especially

in the context of the modern logistics operation gradually developing from a

single service to a systematic service. The logistics operation drives the system to

toward large-scale, systematic, automated and integrated direction. This is both

an opportunity and a challenge to the supply chain management of enterprises.

As a key link of supply chain management, supplier management plays an im-

portant role in defining enterprise development strategy. As an important part

of company’s after-sales business, supplier’s delivery quality and speed have a

direct impact on customer’s after-sales experience. Therefore, it is necessary to

enhance supplier’s management ability. This paper took SAIC General Motors as

an example to introduce how to improve the supplier management ability as an

organic whole of the supply chain in order to better meet the diversified, perso-

Z. X. Yu, Y. M. Chen

DOI:

10.4236/oalib.1104976 3 Open Access Library Journal

nalized and timely customer needs.

1.2. A literature Review of Foreign Research

Since the 1930s and 1940s, scholars and experts from various countries have be-

gun to study supply chain management, and look for the root causes and solu-

tions of problems from various perspectives of the supply chain based on differ-

ent issues. Since then, a large number of supply chain management models with

the core of supply chain have been developed and utilized. As an important node

of supply chain management, supplier has attracted many scholars to conduct

research on their evaluation and management.

In 2005, the survey report published by DELL focused on the issue of extract-

ing the interests of suppliers. It pointed out that the traditional increase of DPO

will cause suppliers to lower their product financing costs and raise the price of

products. The existing value chain model will lead to the rise of DPO chain reac-

tion. The rise of the chain reaction, the biggest damage to the interests will be

the manufacturers of primary products, which is very unfavorable for the

healthy development of the entire industry, and pointed out that enterprises

should be closely linked with suppliers and customers. In 2010, David M. Katz

studied the impact of supply chain finance on improving supplier relationships

in a survey entitled “Strengthening Supplier Relationships through Supply Chain

Finance”, which fully illustrated the development and application of supply

chain and business processes in the management of working capital suppliers.

Kessler and Chakrabatri [1] believed that under the cooperation of suppliers,

companies can better identify potential technical problems and accelerate the

development of new products and respond to market demands; Yli-Renko [2]

studies showed that the creation, acquisition and utilization of knowledge can be

promoted by building cooperative networks with suppliers. Miotti and Sachwald

[3] found that collaboration with suppliers and customers had a positive effect

on sales of innovative products through the second European Community In-

novation Survey (CIS-2). Naude [4] proposed five dimensions to evaluate the

quality of supplier partnership: trust, demand satisfaction, supply chain integra-

tion, power and profit, and the main characteristics of successful partnerships

are constraints, coordination and trust, communication quality and participa-

tion, and conflict resolution. In terms of evaluation methods, DEA (Data Enve-

lopment Analysis), as a non-parametric statistical method for dealing with mul-

tiple input and multiple output problems, is currently widely used in the evalua-

tion and selection of suppliers [5] [6]. Tam [7] proposed to use the Analytic

Hierarchy Process (AHP) to comprehensively evaluate the supplier’s product

quality, production capacity, product structure, marketing situation and market

influence, and then select the best supplier.

To sum up, the research on supplier management in supply chain is mainly

focused on how to evaluate supplier relationship and maximize the value of sup-

plier. The research on supplier management in supply chain has gradually

Z. X. Yu, Y. M. Chen

DOI:

10.4236/oalib.1104976 4 Open Access Library Journal

changed from single project asset management to comprehensive asset man-

agement. How to optimize the internal project, extend to supply chain manage-

ment, combined with enterprise marketing and strategic level, how to maximize

the value of the company through working capital supplier management and

working capital management supplier performance evaluation has not been

clearly studied.

1.3. A literature Review of Domestic Research

China’s related research on supply chain management started slightly later.

Chen (1999) pointed out in the research that the fundamental purpose of

supply chain management is to improve customer service capabilities, give full

play to the operational capabilities of the entire supply chain, and strive to im-

prove customer responsiveness and service quality with minimum service costs.

Yang (2005) found that the supply chain plan is closely controlled, and the sup-

plier management information system should be introduced in time to coordi-

nate the relationship between suppliers in the supply chain to ensure the timeli-

ness and efficiency of procurement management to the maximum extent. And

logistics information system to integrate supply, purchase and purchase lead

time issues, to ensure that the company’s parts procurement is timely, accurate

and efficient. Luo

et al.

(2009) believed that enterprise supply chain cost man-

agement should focus on key procurement indicators such as delivery quantity,

purchase time, delivery location, etc., and timely send them to suppliers through

information, and manage information through suppliers. The system will check

the specific location of the goods in time to ensure that the production and

supply of the goods are closely connected. Tang

et al.

(2010) proposed to use the

third-party logistics model (TPL), correlation model for supplier inventory deci-

sion-making and customer satisfaction analysis, put forward supply chain man-

agement principles and constraints to establish. Wang (2014) stressed that in the

supply chain procurement environment, it is necessary to focus on supplier se-

lection, assessment, appraisal and incentive work, taking supplier relationship

management as the starting point, adopting bidding procurement, bargaining

procurement and strategic procurement, carefully select cost-effective suppliers,

strengthen the efficient connection of material production, cost control and

supplier relationship management, and bring the cost-saving and cost control

leverage effect of procurement management. Pei [8] proposed an activity-based

costing (ABC) method to solve supplier evaluation and selection problems. Li

[9] proposed a consistent method for transforming the evaluation information

of all decision makers into a binary semantic variable based on fuzzy theory to

solve the supplier’s overall supply performance evaluation problem. Jia [10]

constructed a supplier quality evaluation index system under SCM environment,

and used BP neural network to conduct empirical research on supplier quality

space. Wang [11] proposed a method for supplier evaluation based on the DEA

game cross-efficiency model, which solved the problem that the supplier’s index

Z. X. Yu, Y. M. Chen

DOI:

10.4236/oalib.1104976 5 Open Access Library Journal

evaluation is often ambiguous to a certain extent. Xiong [12] studied the rela-

tionship among manufacturer trust, control mechanism and supplier perfor-

mance, and analyzed the role of control mechanism as a guarantee mechanism

of trust in improving supplier performance. Xie [13] focused on the quality of

cooperation between suppliers and enterprises, and conducted a study on the

unification of behavioral commitment and attitude commitment evaluation in

the cooperation process. Zhang [14] studied the relationship between supplier

cooperation and competitive advantage from three dimensions: strategic pro-

curement, information sharing and supplier participation. Xiong [15] combined

with the development of the automotive industry, proposed that a good supplier

relationship can improve the performance of its product innovation through

organizational learning.

Summing up the relevant research literature, we can find that the current re-

search on supply chain management is from a separate to comprehensive transi-

tion, has formed a channel and supply chain management as the core manage-

ment model. As the evaluation criteria of supply chain management are chang-

ing, the reform and development of supply chain management with channel as

the core is taking shape. However, the research on Supply Chain Management

based on supplier management in China is still imperfect, and there is no estab-

lished gap in the establishment of a complete supplier management system. To

be sure, supplier management is the constraints and key to supply chain man-

agement, and building a reasonable supplier management system is the focus of

improving enterprise supply chain management. Supplier management promo-

tion is an important part of enterprise development strategy, and after-sales ac-

cessories service as an important part of the company’s after-sales business. The

quality and speed of supplier delivery directly affect the customer’s after-sales

experience. It is the significance of this paper to develop the management capa-

bilities of suppliers, enhance the operational cooperation of suppliers, and estab-

lish and improve the evaluation mechanism of suppliers.

1.4. Significance

SGM is a typical manufacturing-oriented company. During the development

process, it has undergone strategic adjustments and changes in various aspects

such as organization, process, and market. Various problems have appeared in

the process of supply chain management in the company. These problems are

also representative, and there are similar problems in many similar enterprises.

SAIC General Motors after-sales spare parts in the practice of supplier manage-

ment constantly improve and innovate. Through the analysis of SAIC General

Motors after-sales spare parts supply chain management related problems, un-

derstand the current similar enterprises in the supplier management process

problems, help such enterprises to analyze the causes of problems and propose

countermeasures to improve. Enterprise’s supply chain management capability

and overall business efficiency.

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