Rolls-Royce’s Sourcing Strategies In Asia Pacific

With the development of global integration in economic acceleration, more and more MNCs and multinationals are seeking to expand globally not only in organization but also to use global resource maximum to meet internal requirements under rapidly grow-up environment. Regional sourcing strategy, which was brought up, and Asia Pacific market was paid more attention by more and more enterprises. Of course, there is a competitive market where the companies to achieve more profit from it. An excellent regional sourcing strategy is becoming one way of most international leading companies to approach competitive benefit. In this thesis, we are going to research the sourcing strategy and policy of supply chain management of one leading company-Rolls-Royce Aviation Group in Asia Pacific, using an example of RR’s Singapore purchasing center to introduce how to implement sourcing strategies and management methods in Asia.We are going to explain how the multinational giants approach strategy of supply chain, and then to always achieve excellent taskforce for years. And focused on vendor selection strategy, purchasing, supplier quality management strategy price management policies, suppliers, delivery management, supplier KPI evaluation, policy and procurement risk control strategies.How to select qualified supplier? The main rules were strictly followed up suppliers approval program; SB4is standard procurement process which is RR’s bible to guide purchasing people to control sourcing steps and have a clear roadmap to control supplier quality. Some standard files like RED CARD was launched to track supplier’s quality issues. The strategy of price management is aiming to better understand price contribution of cost control through analyzing the cost model of raw material. Besides the price and quality issues, RR is sharpening focus on supplier on-time delivery especially to international supplier. As headquarter, Singapore purchasing Centre was a vivid sample to show us daily operation of all purchasing activities which was proceeded to analyze.