The Research Of Trane Company Supplier Strategy

Global market is getting fierce competition in the trend of economic globalization. The customers always ask for more and higher quality product and service. Global marketing strategy, sourcing strategy, operations strategy already become import portions in the global company development strategy. Procurement is one of the most important activities due to the procurement spending is the big potion of company operations cost. More and more companies keep the core business inside and outsource non-core business to partners through procurement system. Procurement is becoming key function in the company organization.With China great development in the last 20 years, more global companies sourced product from China. The"made in China"products are already accepted by global market and being one option of global sourcing. Sourcing from China or low cost country is becoming global company sourcing strategy. Most global companies are setting global sourcing center in China to procure materials and products from China. The target is sourcing low cost materials and gets low cost advantage. Definitely it is risk and challenge to source from China, but it could be controlled. It is important premise to establish and implement sourcing strategy. And it guarantees to source from China without accident. This thesis analyzed supplier strategy, which is the core of sourcing strategy. It is base on the analysis of competitive strategy, cost leadership strategy and difference strategy. The portfolio analysis is prior to use in marketing and finance analysis. This thesis introduces supplier strategy portfolio. Depend on the analysis of supplier strategy portfolio; the supplier strategy is different to different types of suppliers.This thesis is subjected to Trane Asia Pacific Region supplier strategy. It researches supplier selection, supplier development, supplier management. Through the case study of Trane Asia Pacific Region sourcing organization, sourcing strategy, sourcing process and procedure, it provides guidance and policy to establish and implement supplier strategy.