Researches On CAF Auto Industry Supplier Sourcing And Capability Development

With more and more great impacting of globlization economic on China market economical, especially after the WTO entrancing of China, a large number of competitive multinational companies entering China market. It is becoming more and more issue for how the local enterprises to participant the globe competition.China automotive market is regarded as the last one virgin market. Almost all of the largest auto maker companies in the world has established their JV in China. Due to the policy requirement of China government and the cost reduction, OEM need to localize more than 40% parts in China, more and more auto parts maker companies such as Delphi, Visteon, Denser etc. to have established their plant in China to meet the needs of OEM in China. Because the local suppliers are lack of understanding of SCM of the world lead OEM and have big gap in quality control, product developing, cost management and logistic management comparing with above mentioned auto parts suppliers, it is the big concern for local supplier to acquaint how about the SCM of the OEM and how to improve the capability to meet the requirements of OEM. Meanwhile for the marketing competing reason, the sourcing for suppliers is becoming more and more careful and restrict for OEM.There are more optional for supplier sourcing and supplier capability improvements. This paper focused on how to making sourcing and improving supplier capability by supply chain management of OEM. First of all I brief introduced SCM theory particularly on the definition, supplier sorting and sourcing in this paper, then analyse the characteristics of SCM in auto industry and the details of CAF SCM and procedure of supplier sourcing, finally I introduced the methods of supplier capability improvement by CAF SCM and the counter measure for supplier to capability lift in quality, technology, cost and delivery.