Research On D Company Procurement Management In Auto Spare Parts From China

According to data from MIIT(Ministry of Industry and Information Technology) 2014 Annual Auto Industrial Economic Operation Status, the cumulative vehicle production of 2014 is around 23.72 million units, up to 7.3% year on year, and the sales of vehicles is around 23.49 million units, up to 6.9% year on year, both production and sales ranked No.1 in the world. The good momentum of car production and sales will undoubtedly promote the rapid development of the auto spare parts business, Chinese auto parts manufacturing industry is expected to grow more than 20% in the next five years.The huge potential of Chinese spare parts market and the low-cost in manufacturing of various products with different quality attracts many multinational auto parts procurement group. From the beginning it only supplies foreign aftermarket service market and now is turning to join the international auto spare parts purchase plan of those well-known multinational automobile brand gradually. According to the latest statistics from Ministry of Commerce shows that the exportation of Chinese spare parts will become the most potential and most promising products “Made in China”.But in fact, the spare parts industry is facing many serious problems such as disorderly,indiscipline in industry scale, intellectual property, production process, product quality, and so on. If Chinese spare parts suppliers want to compete in the global market, it is not enough to have the advantage of low-cost manufacturing, meanwhile they also have to make deep improvement on management.This article will take D company as example and combining with their present status in spare parts purchasing from China market, aiming at the existing problems, from the perspective as a purchaser to analyst various deficiencies of Chinese spare parts manufacturer. In terms of the procurement of original spare parts, mainly focus on analyzing the existing problems with Chinese brand car makers like Quantity of Order delivery, Lead Time, Format of transportation and etc. discussing the corresponding improvement project; And in terms of aftermarket spare parts procurement, mainly focus on the current status in supplier selection, supplier quantity control, supplier evaluation, supplier relationships and etc, discussing on the improve scheme. The article also will discuss the corresponding risk of transnational procurement suppliers.By means of these improvement schemes, it is expected to optimize the purchasing management and increase the efficiency of D company both in the original spare parts and aftermarket parts. Enhancing customer satisfaction in the terminal market to achieving a win-win cooperation with suppliers.