FAW-VW Purchasing Supply Chain System Management And Research

The competition of automotive industry in the 21st century has changed from the direct automotive companies competition to the supply chain competition. The payoff ability of the automotive companies has been depended on the cooperation between himself and its suppliers more and more. In order to accelerate realizing the localization, reduce the purchasing cost, improve the competition ability of external cooperation, it is very necessary for FAW-VW to make a development plan of purchasing supply chain system management.This paper begins with the research of current situation of FAW-VW purchasing supply chain management., and analyses the internal and external situation of FAW-VW, especially analyses the dominances and inferior points of FAW-VW, and from the view of development, this paper has presented some advices for the development of FAW-VW purchasing supply chain: improve the organization, optimize the purchasing process, accelerate the localization, reduce the purchasing costs, build a scientific purchasing system and optimize the supply chainmanagement.The rapid development of Chinese economy and the relative stabilization of GDP has created positive influence on the further development of Chinese automotive industry. The activity of economy will bring the activity of logistic and human being transportation. No matter the change of city communication or the physical demand of the people, they have created the straight growing trend of the automotive vehicle demand. At the same time, the hard price competition has forced the automotive companies to pay more and more attention to the cost control. All these external changes must force FAW-VW to make changes on its purchasing supply chain system management strategy. In this paper it is pointed out that in order to fit the current competition situation and adjust the development strategy., it is necessary for FAW-VW to reform its current organization. It means it must set up project management section and three professional section/office for the purchasing of the parts for series production. In the management section, it is necessary to set up the pre-purchasing group, project following group and projects coordination group, so that the current management model for the suppliers can be changed., so that we can fit the competition on the automotive market better and fulfill the demands of the long term development of FAW-VW. The former production section will be departed in metal, non-metal and electric section according to the specialization. The function of price staffer and general planning staffer will be placed into the duty of the professional staffer, so that the purchasing staffer can have the full ability to improve the management depth of the suppliers. At the same time, it is necessary to improve the purchasing process and set up a purchasing committee, so that the choice of the suppliers can be open and optimal, and the price of the parts can have better competition ability on the market. On this basis FAW-VW can fit the harder and harder competition on the market and be the winner in the Chinese automotive industry which has more further development potential.