Supplier And Purchasing Management Of FAW-VOLKSWAGEN

Based on the reality of Chinese Automobile industry and a comprehensive view of supplier management inside and outside China, this thesis analyzes the merits and demerits of domestic and foreign supplier management objectively; discusses the supplier management of FAW; and provides the supplier management model which is suitable for Faw-vw.First of all, this thesis scrutinizes the market environment in the Chinese Auto industry. It emphasizes the positive factors stimulating the demand increase in the Chinese car market in the last two years and the coming challenges in the next few years, as well as the present situations in the Chinese components industry. According to the macroscopical perspective, private cars have become the mail consume group because of the macroeconomic increase in China and the issue of the policies which aimed to accelerate the auto industry development. It discusses the latent negative effects brought by the protective policies for the Chinese auto industry and the current situations in the Chinese auto components industry. It compares the merits and demerits of Chinese auto components industry with the ones abroad. This thesis summarizes the four types of auto components supplier; analyzes their difference; discusses the demerits existing in the domestic components supplier; and provides the causes of these demerits. Secondly, this thesis discusses the theory of supplier management. The suppliers play a very important role in the auto industry, which directly affects the cost and quality of automobiles. It puts forward the aims and strategies of the supplier management, categorize the suppliers, as well as the relationship between each type and the complete automobile manufacturers. It also introduces the development of suppliers, the role of the complete car manufacturers in the supplier development, and the exploitation of the suppliers' capacity.Thirdly, it introduces the specific model of the supplier management by the automobile companies inside and outside China. The foreign management model includes America, Japan and Germany. American companies pay more attention onthe price control; however, it has great deficiency in the support of the supplier development. It causes the weakness of the suppliers' sustaining development capacity and the decline of its number. In order to adapt themselves to the severe international competition, some American complete car manufacturer are adjusting their past supplier management model step by step.The thesis discussed the important effects and its demerits of the "Lopez Theory". The Japanese supplier management model is the coexistence of the partnership and the normal exchange. The Japanese complete car manufacturers categorize their supplier into different levels and treat them differently. The supplier management of the German companies almost completely centers on the quality. It is not efficient to control the cost. Regarding the Chinese supplier management this thesis mainly introduces the models of six corporation. The purchase cost was reduced, the quality of the components was improved, and the risk of supply was greatly lowered. SGM selects reasonable supplier process, flexible and high-efficient recognition and supply process, which brings itself more suppliers.Lastly, this thesis gives details of the Faw-vw supplier management experiences, the existing problems and provides the innovative suggestions to solve these problems. It introduces the four phases the company experienced and analyzes the problems regarding supplier management with which the company is confronted. It offers the methods to solve the problems systematically and completely and the dual-beneficial supplier management concept.