Analysis Of TNRS Sourcing Strategy In China

Procurement as a very important step in the supply chain management, attention to more and more enterprises, and along with the social division of labor is increasingly sophisticated, more and more competitive market and the rapid development of economic globalization, the function of procurement is facing a profound change. The simple supply to meet the production requirements gradually evolved into permeates the enterprise industry even the whole supply chain management of each link and has important influence on the whole supply chain management role. As the world factory, China also become preferred destination of most of the multinational companies, by reducing cost; improve the efficiency of global resource allocation to improve their core competitiveness in the international market. However, due to the difference of eastern and western culture, social development level differences, many multinational companies are facing difficulties to purchase from China: market transparency is insufficient; the supplier’s management levels are intermingled, imperfect social credit system prone to purchase corruption and so on. How to control the cost and guarantee fair and transparent competition mechanism; How to select suitable supplier from unclear market etc. have to be evaluated by multinational companies.The research of this thesis focused on the sourcing strategy from TNRS in China by using case study and in-site investigation. Following the research, the "Best-Fit" sourcing strategy played very important role from the success of sourcing activities in China. Wish the research would help the sourcing project of TNRS, meanwhile, would be advisable for Chinese suppliers to be involved into the global supply chain of multinational companies.This thesis is divided into four chapters: the first chapter introduces the research background, purpose and research methodology etc.; The second chapter introduces the company of TNRS and their sourcing business in China, meanwhile, introduces the contents of the sourcing strategy of TNRS; The third chapter is the core of this thesis, introduces the execution of sourcing strategy of TNRS in detail; The fourth chapter summarized the experience of sourcing strategy of TNRS as well as the suggestion to Chinese suppliers regarding better involvement to the supply chain of global organizations.