Sourcing Strategy Of Multinational Auto Companies In China

China auto industry keep booming in the recent decade, multinational OEMs(Original Equipment Manufacturer) and tier suppliers come to this market, invest their wholly owned facilities and JVs, meanwhile, they also increase their local purchasing dramatically. Tremendous opportunities are given to local suppliers by these activities. To understand their sourcing strategy and becoming part of their global supply chain are more and more important.Previous research essays mainly focus on traditional "QCDS" (Quality, Cost, Delivery and Service) study, discuss how to find the balance between all these important factors based on industry characteristic and company status. The idea is trying to establish a set of supplier rating system to evaluate supplier appropriately. The advantage of this method is easy to handle, company can simply adopt current popular "QCDS" system and put into place. The disadvantage of this method is people will easily loss overall vision of their sourcing strategy.In this article, we try to investigate the sourcing strategy of multinational auto companies in a different angle. Starting from their point of view to help local companies build up their business plan and sales strategy, we also hope this help our government to develop their decrees and regulations for Chinese auto industry. We believe local suppliers will become important player in the future global market. SerconstanceThis essay has six chapters. Beginning from preface, the first chapter puts forward the topic of Sourcing Strategy of Multinational Auto Companies in China based on the current market circonstance, also introduce the way of this research and the value in practice. The second chapter mainly focuses on the sourcing strategy of multinational companies, discuss "QCDS", strategy sourcing and global sourcing. The third chapter compares the sourcing strategy difference between western OEMs and Japanese OEMs, also give a success story of Toyota. The fourth chapter describes current situation of local suppliers, also introduce the sourcing flow and eligible supplier standard of global auto industry. The fifth chapter explains the export status of Chinese tier suppliers, list out some examples and potential risks. The last chapter is to give some advices to our local tier suppliers. The first four chapters are research portion, the fifth chapter is practice, and the final one is summary and expectation.This essay is not only bringing a new research angle but also emphasizing to linking into our working reality. Based on the industry research data and sourcing history, introduce the sourcing trend of multinational auto companies to the readers. Hope this article will be help of the future purchasing theory and government regulation development.