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Aug 05,2021| LED Knowledge
In Dubai, because the local LED display production chain is not complete,
there are no high-quality LED suppliers in the local area. Therefore, it is more
difficult to choose LED supplier facilities in Dubai. At present, there are
thousands of LED display suppliers in China. There are so many manufacturers,
with different levels of good and bad, it is difficult to choose, and the
quality level is uneven, so there are not many manufacturers that produce LED
displays with better quality, so everyone is buying LED displays. You can learn
more about the screen and choose a large brand and guaranteed supplier that
suits you to buy LED screens. So, how to choose LED suppliers in China?
Factors affecting supplier selection:
Suppliers belong to an open system of supply chain, so the choice of suppliers will also be affected by various economic, political and other factors.
1. Quality factor Quality: This is the foundation of the supply chain. The use value of a product is based on the quality of the product. It determines the quality of the final consumer product and affects the market competitiveness and market share of the product. Therefore, quality is an important factor in choosing a supplier.
2. Price factor Low price: This means that the company can reduce the cost of its production and operation, which has an obvious effect on the company's competitiveness and increase in profits, and it is an important factor in the selection of suppliers. However, the supplier with the lowest price is not necessarily the most suitable, and many factors such as product quality, delivery time, and transportation costs need to be considered.
3. Punctuality of delivery: Whether the products can be shipped on time according to the agreed time and place will directly affect the continuity of the company’s production and supply activities, and will also affect the inventory level of the supply chain at all levels, and then affect the company’s response speed to the market. Interrupt the production plan of the manufacturer and the sales plan of the seller.
4. Variety flexibility: In order to survive and develop in fierce competition, the products produced by enterprises must be diversified to meet the needs of consumers and achieve the purpose of occupying the market and obtaining profits. The diversification of products is based on the flexibility of the supplier's variety, which determines the types of consumer products.
5. Other influencing factors: including design capabilities, special process capabilities, overall service levels, project management capabilities and other factors.
Basic principles for selecting suppliers:
The basic principle of supplier development is the "Q.C.D.S" principle, which is the principle of equal emphasis on quality, cost, delivery and service.
1. Quality factor: This is the most important. First of all, it is necessary to confirm whether the supplier has established a stable and effective quality assurance system, and then confirm whether the supplier has the equipment and process capability to produce the specific product required.
2. Cost and price: use value engineering methods to analyze the costs of the products involved, and achieve cost savings through win-win price negotiations. In terms of delivery, it is necessary to determine whether the supplier has sufficient production capacity, whether human resources are sufficient, and whether it has the potential to expand production capacity.
3. The last point, which is also very important, is the supplier's pre-sales and after-sales service records.
General steps for supplier selection:
Suppliers play an important role in the supply chain, and the selection mechanism of suppliers is diversified. Therefore, when selecting suppliers, the decision makers of enterprises must adapt to local conditions and conduct a detailed analysis of the internal and external environment of the enterprise, according to the long-term development of the enterprise. Strategies and core competitiveness, choose theories and methods suitable for the company or the industry, and formulate corresponding implementation steps and implementation rules.
Issues that should be paid attention to when choosing a supplier:
1. Self-made and "outsourced" procurement:
In general, the higher the rate of outsourcing, the greater the chance of choosing a supplier, and the main target is professional manufacturers who can divide labor and cooperate. Through outsourcing, companies can focus their energy on core capabilities and avoid dispersal.
2. Single supplier and multiple suppliers Single supplier:
Single supplier refers to the centralized ordering of certain items from one supplier. The advantage of this purchase method is that the relationship between the supply and demand parties is close, the quality of the purchased items is stable, and the purchase cost is low; the disadvantage is that it cannot be compared with other suppliers and is easy Losing quality and price more favorable suppliers will have less flexibility in purchasing. In addition, if the supplier has problems, it will affect the company’s production and operation activities.
Multiple suppliers refer to the items needed for multiple orders, and their advantages and disadvantages are just the opposite of those of a single supplier.
3. Domestic procurement and international procurement:
Choose domestic suppliers, the price may be relatively low, because the geographical location is close, you can achieve on-time production or zero inventory strategy;
Choosing an international supplier may purchase items that cannot be reached by domestic enterprises, improve its own technical content, and expand supply sources.
4. Direct purchase and indirect purchase:
If it is a large-scale purchase or the required items have a significant impact on the production and operation of the company, direct purchase should be used to avoid middlemen from increasing prices and reduce costs;
If the purchase quantity is small or the purchased items have little impact on production and business activities, indirect purchases can be used to save the company's purchasing energy and costs.