This paper analyzes the important role and significance of upstream supplier management in the supply chain of automobile industry.

1. Supply chain management considers all member companies that have an impact on product costs in the process of meeting customer needs, including raw material suppliers, manufacturers, warehouses, distribution centers and distributors. But in fact, in the supply chain analysis, suppliers and customers of suppliers need to be considered, because they also have an impact on the performance of supply chain.

2. The purpose of supply chain management is to pursue the overall efficiency of the whole supply chain and the effectiveness of the whole system cost, always trying to minimize the total system cost. Therefore, the focus of supply chain management is not simply to minimize the transportation cost or reduce the inventory of a supply chain member, but to coordinate the supply chain members by adopting a systematic method to minimize the total cost of the whole supply chain and make the whole supply chain system in the most smooth running state.

3. Supply chain management revolves around the organic integration of suppliers, manufacturers, warehouses, distribution centers and distributors, so it includes multi-level activities of enterprises, including strategic level, tactical level and operational level.