The Multinational Company B’s Local Supplier Development Strategy In China

While multinational companies entered China market and develop their business steadily,for cost reduction and further growth,they start to do local sourcing and supplier localizations.However,as local manufactures are not as competitive as the western competitors in terms of production process,quality stability as well as management,the multinational firms in China still purchase the key materials from the original western suppliers.This thesis studied on the company B’s Chinese supplier localization and development by supply environment analysis,supplier evaluation & selection,supplier development and continuous improvement.It not only analyzed the current situation,also estimated the market trend which supports the supplier evaluation & selection.The comprehensive qualitative & quantitative research method is applied for supplier selection,which makes the judgement more objective and accurate.For supplier development,the company B structured strategy for both quality and pricing optimization.Besides,the factor of sustainability has been also taken into consideration.The strategy is aimed to help company B build up the long-term relations with the local leading supplier and gain the competitiveness for whole SD product supply chain.It is expected that the guidance and methodology could be provided to the multinational corporations in China who is to make strategy for local supplier management.In addition,it could be a best practice for local supplier to know about the process and strategy of multinational corporations’ procurement localization.