A Research For The Global Sourcing Strategy And Supplier Assessment Of TX Corporation

With the current situation that the fierce market competition, the refinement of labor division, the globalization and the low cost region like China, India are becoming the global manufacturers, more and more transnational corporations invest to build factories or perform global sourcing in those regions. Construction Equipment corporations can reduce the total cost and be more profitable through global sourcing as well. However, it could be tasks on how to set up and achieve the global sourcing strategies, how to assess, identify and develop suppliers.The theories of Supply Chain, Strategic Procurement, Supplier Assessment and Identification were used in the research of the Construction Equipment manufacturers’ global sourcing strategies development and supplier assessment&identification. The studies on an US based company-TX Corporation were conducted by analyzing the characteristics of the Construction Equipment industry and its procurement, to develop the commodities strategy, organization and7steps of global sourcing; to develop the supplier assessment, identification and development process and model through the11elements audit, risk evaluation and key elements identification. The solutions could be referred by the other companies in the industry as well.Case study was conducted by analyzing the global sourcing of TX on castings commodity. Medium&long term strategy was developed by the analysis of the current status, the castings market situations, the SWOT of castings procurement and the risk management; the supplier was identified by compare the results of the on-site assessments of the similar products suppliers, and the strategic supplier was developed for TX castings commodity.Lastly, countermeasures were proposed for the global sourcing implementation problems of TX Corporation.