Strategic Sourcing Study Of Company C

Purchasing means one company buys product or service from market to meet company’s production requirement. So in fact purchasing process is the process of resource requisition. Suppliers are one kind of resource in the market. Then the quality of resource affects cooperation’s running efficient and product competitive. After Supplier Chain management theory was more and more broadcasted and accepted people pay more attention to good quality sources and even leverage that to strategic source. As we all know the competition in the market becomes more and more fierce and product margin becomes lower and lower that let more and more company lives on supplier chain. Actually that competition is belong to supplier chain. Especially in automotive industry supplier chain is very popular. Car manufacture defined tier one and tier two suppliers. They are in different level. Car manufacture only cooperate with tier one supplier and tier two supplier service tier 1 supplier.Company is as tier one supplier. They are the one of biggest company in the specific field and well known in the automotive industry. Their new technology development strength is very high. The company strategic is setting up manufacture point and supplier chain in low cost area and deliver goods to different customer globally to maintain customer relationship, keep product competitive, control manufacture cost and develop global market. China business is the biggest one of company C. it has whole product line and longest supplier chain. China research and development center also serve globally. China work order is more than 50% from over sea. More than 60% purchasing value is from China market. Over sea market variance a lot so management pays more attention to China business. China business will become main business location in next five years. So it is very important to select right strategic supplier to support developing China local business and keeping well know of company product.This thesis analyzed company C’s purchasing procedure and combined automotive industry specification and Yangzi Delta area market situation then using AHP to set up strategic supplier selection procedure for company C. further on this thesis the establish this module is helpful for efficient strategic supplier selection and optimization of purchasing decision making and supplier base. Secondly the module can be the reference for other automotive company.