Research On Local Purchasing Tactics Optimization Of Multinational Firms Affiliates Based On Supply Chain Management

Along with the reform and opening up,and entering the World Trade Organization of China,more and more Multinational Sourcing Firms come to China,establish China affiliates in different styles,such as Subsidiary Firm,Representative Office.But some Multinational Firms didn't transform the function of their affiliates based on the actual situation of China,it cause the affiliate didn't reach the expected contribution of the Chinese supply chain from its parent firm,so difficulty was encountered during local purchasing for quite a few Multinational Firms.Take the China affiliates of western Multinational Firms as an object of research and an anchor point,the purchasing tactic optimization research and working processes optimization based on the local purchasing of this research object is the prime target of this dissertation.At the beginning of this dissertation,the development background of Multinational Firms China affiliates has been introduced,the research on Supply Chain Management and Purchasing Theory based on Supply Chain Management has been summarized,and then the present situation of supply chain for Multinational Firms China affiliates has been analyzed.Afterwards,the upstream supplier management,the downstream marketing management,and the inner work process optimization of Multinational Firms China affiliates have been explored.Next,in order to make the study to put into practice,using the case study method,the working process of M sourcing company China affiliate has been discussed.After analyzing and researching on optimization of sourcing processes for Multinational Firms China affiliates,about the Optimization of China affiliate's Local Purchasing Tactics,the dissertation comes to the following main conclusions:1.For upstream supplier management,the China affiliate of Multinational Firm should try to transform the OEM suppliers to ODM suppliers,control supplier quantity,optimize supplier quality,strengthen supplier relationship management,and try to set self-management mode for suppliers.2.For downstream marketing,the China affiliate of Multinational Firms should strengthen the response on exchange rate risk,well manage the quota,and take precaution to prevent supplier's competition,make design for target market and set up private brands to strengthen cooperation with retailers.3.For inside work process improvement,the China affiliate of Multinational Firm should reform the division pattern,set up cross-function sourcing division,and increase the power of the China affiliate,etc.For the purchasing of Multinational Firm China affiliates,the research of this dissertation has reference meaning.For the Chinese Suppliers try to set the proper position in the Supply Chain Management Net,the conclusion of this dissertation has strong practical guiding significance.