Investigation On Supplier Management Method Of X Automotive Component China Company

After 2008 world economic crisis, every country use liberal economic policies to stimulate the global economy started to recover in late 2009. To support the recovery of the first pillar industries, the Chinese government promulgated a series of car incentives, and leaded to a rapid development of Chinese automobile market in 2009, The quantity of Chinese auto production and sales in 2009 is over 13 million, which helped China first time to surpass U.S. as the world's largest auto production and consumption market. In 2010, auto market continued to hit. The production and sales quantities are over 18 million, which is increased 37% more than last year and still on top of the world. According to experts'estimation, automobile market is expected to continue growing in 2011, production and sales may exceed 20 million. According to 14 major auto companies announcement, in 2010 they only have 15.82 million production capacities. Not only the OEM manufacturers, but also all levels of supplier in automotive industry supply chain have production capacity problems. Under this capacity constraints condition, the purchaser need to have advanced management methods to choose the best suppliers, accelerate the development of strategic partnership and strengthen the value of the management of suppliers. So that the vendors can meet the purchaser's growing business needs. This paper analyzes the structure of the automotive industry supply chain and automotive parts supplier's characteristics and describes the important role of supply chain management. Considering current supply chain management problems in automotive industry SMEs, the paper focuses on the advanced methods and theories of supply chain and partner relationship management in outstanding foreign automotive industry OEMs and other industries. The paper studies the sample of X Company Chinese branch procurement background and finds the supplier management problems in the process. The author gave recommendations on how to optimize the processes of supplier selection and classification, and further strengthen the partnerships and alliances with strategic suppliers. According to the author's improved process, X Company Chinese branch's purchasing department can classify the suppliers, and will have a clear management strategy to help improve efficiency and performance of suppliers.