A Study Into Global Sourcing Management Of M Company

The Chinese manufacturing industry especially the automobile industry is facing the strong impact of internationalized economy, having fierce competition both abroad and at home. In the macroeconomic environment China is adjusting his industrial structures which resulting with eliminating low value added braches and higher production cost. The purchasing cost from local sources gets higher and higher every year. All these factors are challenging the global competitiveness of MADE IN CHINA and sinking into harder situation facing internationalized competition.As far as decades ago the automobile manufacturers have already started with global sourcing strategy up to this challenge and are making good performance. It makes even greater sense to analyze their practice systematically. Global Sourcing has been proved both from theory and facts to be the fundamental method to meet the challenge of internationalization. Through it the resources could be relocated ultimately in the range of global market. The Chinese industry could get the mostly needed factor for upgrading with a most competitive and efficient supply chain management and getting improvement on core competitiveness. The research of this paper could supply the Chinese industry the necessary reference of how to apply efficient and effective global sourcing.There is a research in theories of global sourcing and supply chain management building theoretical fundament of this paper. Then an overview of automobile globalization is analyzed as market background. Further is case study on an old German giant M Company for his practice in global sourcing. This paper studied from points of global sourcing strategy setting, conducting; manage the process and evaluating the result. At the end conclusions are drawn showing the elements of success factors and also the potential failure factors which might happen in conducting global sourcing. There could be a lessons learnt effect for the companies doing or plan to do global sourcing activities.