Research On Procurement Management In FM Corporation: As An Example Of FIT Localization Project

With the rapid development of globalization and the increasingly sophisticatedscience and technology, supply chain capabilities, production and marketing model ofAutomobile manufacturers have undergone historic change. Competition amongenterprises has evolved into a competition in the industry chain and supply chain.Nowadays，no other automobile manufacturers can complete the whole process alone fromparts manufacturing to vehicle assembly and auto sales. Automotive supply chain has thesefeatures: number of participating subjects, cross-regional, multi-link. Thus the productionprocess will be affected by each node in the supply chain, while suppliers are regarded asone of the most influential part. Supplier selection and management directly relate towhether the company can guarantee sustainable production, whether new products can lead,whether they could provide superior products to meet customer demand. So it plays animportant role in the survival and development of enterprises. Summary, establishing ascientific and rational supplier development process, implementation of appropriate andrigorous supplier management system, doing continuous improvement, establishinglong-term strategic partnership, are of great significance to improve the overall efficiencyof the supply chain.FM Corporation has a hundred years of history, and is the automotive industry’s top500enterprises. FM is an innovative and diversified global supplier of quality products,trusted brands and creative solutions to manufacturers of automotive, light commercial,heavy-duty and off-highway vehicles, as well as in power generation, aerospace, marine,rail and industrial. FM Corporation has its Asia Pacific headquarters, technical centers and11manufacturing plants in China. Currently, with the increasingly evident trend of Localsourcing strategy in China，Based on the two factors of price and competitive pressure, andalso in order to achieve cost reduction targets, FM Corporation decided to find the rightsupplier in China to replace the existing overseas suppliers. Friction Supply Optimization Project（FIT）, which involving the procurement of a number of overseas production sitesin China, thus came into being. In order to show the procurement management model ofFM, we take FIT project as an example, discusses the whole process from supplierdevelopment to supplier management after mass production and continuous improvementin FM.In this paper, we start with the background and significance of the study, and describethe research status, the text structure, technical route, research methods, innovation, and soon. And then starting from the theoretical research, we collate and summarize the suppliermanagement theory,1S0/TS16949standard and five manual of auto industry. On the basisof the literature, we study the purchasing Management model of FM as an example of FITproject: First we introduce the supplier development processes of FM, taking the exampleof backplane supplier selection. Secondly, a detailed analysis of the sample approved isprovided, we also analyze at the merits and shortcomings of the existing processes. Then,we studied supplier quality management after mass production of FM, including the dailymanagement after mass production, supplier performance evaluation and continuousimprovement of supplier. Based on the detailed discussion of supplier management systemin FM, we summarize which is worth learning and thought-provoking, and analyze theshortcomings and risks. we also put forward a series of feasible countermeasures, so as toprovide reference ideas to improve and optimize supplier management mode in domesticmanufacturing enterprises. Finally, we summarize the main conclusion of the study.Research prospects are also put forward to be explored on the issues in-depth.