Local Supplier Management Strategy From A Global Corporation

With the economic globalization coming, the trend of borderless business is more obvious. The competition in the market has shown a clear international integration。 At the same time, users demand more prominent personalities, higher product quality, and the service level, such as the OTD (On-time Delivery). Such kind of world new trend and the new challenges from the customers also had changed the way to run the company.OEM had become the main function mode, the brand owner no longer made the products by themselves, they don’t keep the factory and mass amount of labors, the money for that is now released, being used to explore new market and develop the brand. Manufacturing are lower profit, so that the brand owner buy the products directly from the suppliers. As a result, the competition of modern companies is really the competition between their suppliers. Applying the proper methods to improve the supplier’s technology, and service level, doing a good supplier management, is a key to enhance the competitiveness and to win a competitive advantage.This thesis is based on the K Company (one of worldwide top 500), the current situation, especially OEM areas in China. Begin with the problems we faced during supplier management, we analyzed then showed the Supplier Select Method, SDP (Supplier Development Process) and SRM (Supplier Relationship Management) concept, trying to find out how the top company worldwide cooperate with Chinese local suppliers, and how they combined to be a strategy partner with each other, to raise the whole supply chain value and competitiveness eventually.As a participant in supplier management in the K Company, I wish to provide a reference to the related companies, aiming to enhance our own company.