Study On Risk Analysis And Controlling Strategies Regarding On Suppliers Of Global Sourcing From China

After china became a member of WTO, Chinese corporations are becoming the world center of manufacturer, because of its labor factor advantage. They are also becoming suppliers of international customers and appeal a lot of sourcing centers to locate in China. And this dissertation studies such environment and analyzes risks facing Chinese suppliers and provides methods to control them.This dissertation narrates global sourcing and global sourcing in China, summarizes purchasing risks and describes the process and requirements of global sourcing in detail, then, based on it, analyzes various risks and countermeasures to control them when Chinese corporations join in the rank of multinational corporations' approved suppliers. Furthermore, the risks are classified into: storage risk because of the restraints of geographical and transportation conditions; risk of exchange rate, price and operational capital loss because of payment terms; risk of storage, capital occupied and cost increase because of market demand changes; risk of incomplete contracting; risk of Non-Tariff Barriers. Then in the following chapter, countermeasures are offered to the risks respectively. At last, the contribution and restraint of the studies and the trend of further studies are illuminated.For studies on global sourcing originated from foreign countries which launched it, most of them are from the side of purchasers and few are form the angle of suppliers. This dissertation studies risks facing suppliers while they participate in global sourcing and countermeasures to control the risks for the first time. I hope that it may provide helpful instruction to Chinese corporations when coping with such conditions and making sensible decisions.