| With the improvement of living condition and the entrance of WTO during recent two years, the auto consumption culture has been developed in China,People endow extreme zeal with chat about car anywhere. At the same time, The environment of domestic auto market has being changed seriously, However now more and more carmakers want to occupy a littler bit more market area, nobody knows when and who would bring a new brand of car. In the meantime the competition is not individual activity, it appears anywhere of complete supply chain. So strengthening management for supply chain plays a very important role. it is necessary means to control purchasing cost, and to optimize purchasing procedure, they are also basic assurance to realize strategy targets.With the development of domestic auto industry and the transfer of global strategy of corporation, all the companies change their key management points and method. According to this kind of background and based on the research for current localization management of purchasing parts, SCM and JIT method, this article is to discuss future SCM which would adapt to the development of China. In order to fit the change of outside environment, FAW-VW should adopt the strategy of reducing cost and improve localization in the next few years. Therefore FAW-VW should keep on improving and deepening purchasing management based on SCM .localized parts are divided three phases: prophases purchasing, production preparation monitoring and mass production purchasing. In the prophases purchasing stage the purchasing department will make purchasing plan for new development program which confirmed by board, economic management committee or product strategy committee, in the meantime the relevant technical documentation will be sent to pre-suppliers and ask for their offer. After receiving the quotation from pre-suppliers, the purchasing department would make business analysis, business negotiation, and organize program team to do technical discussion. CSC will confirm supplier by CSC meeting, then purchasing department will sign trial-manufacturing agreement with supplier. During the production preparation stage supplier should kick off for tooling and make prototype according to updated technical documentation and development plan provided by FAW-VW. Product engineering department asks for PVS parts, purchasing department arranges order and monitors the schedule of supplier. Product engineering department release off-tool samples. Manufacturing department raises a requirement for O-series parts, purchasing department organizes order and quality department will make validation for the first batch of samples. Production supervisory department apply for reducing CKD order and confirm the localized time according to mass production release report, supplier will make preparation for mass production based on this report. In the mass production purchasing stage purchasing department will sign yearly order with supplier based on the mass release report and reducing goods schedule, and ensure production capacity of supplier. Production supervisory department is in charge of signing monthly contract with supplier according to the production plan and stock status, monitoring the whole process. Financial department strikes a balance for supplier. As above mentioned, FAW-VW has developed a complete purchasing management procedure for localized purchased parts, so the purchasing management of FAW-VW for localized parts is a mode based on SCM.But it has insufficiency in management: It is simple on achievement evaluation standard and method for supplier; All supplier will reduce when raw material price is rise; Logistics management is warehouse management.In order to adapt change of market environment,FAW-VW takes purchase stratagem of reducing cost and quickening components localization,these are basic approaches to strengthen and improve management of supplying chain and quicken local purchase stratagem .FAW-VW management for localized purchase components should make follow...
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