The Sourcing Strategy Research Of YF Company In Asia

Under the background of consistent economic globalization and rapid business competition development,enterprise competition has been risen to a full range of competition.At the same time,the importance of purchasing function in enterprises is constantly evolving.Procurement as one of the most important factors in supply chain management has been proved to be a huge contribution in the corporation strategy implement and cost control.YF Company is a global direct-sell cosmetics company.Currently YF Company set up three manufacturing factories locating in China,Philippine and India in order to supply makeup,skin care,perfume and other cosmetics to global market.These years,the cosmetic market gained explosive growth in Asia,however the revenue of YF Company in Asia consistently declined.Under this background,YF Company set up new strategy orientation in global and regional level.To support the YF Company new strategy orientation,procurement of Asia have to solve the existing issues and challenges and set up a new functional strategy target.Aligned with that,series of activities need to be executed to achieve the target.This thesis takes YF company raw materials procurement strategy as the research object,analyzes the market dynamic and purchasing status of YF Company in Asia,in use of the MBA knowledge of supply chain management,competitive strategy,human resource management,financial management and so on.It figures out that there are some issues impacts on the sourcing strategy,function setting,and supplier management and information system.To solve those issues,the thesis advice to implement the centralized purchasing,optimization of function setting,supplier management and information system.The thesis is analyzed by the method of Michael Porter's Five Forces Model,comparison,SWOT analysis,history analysis,theory & practice analysis,which has put the knowledge acquired into practice.The Research of this thesis can be a good reference for whom in the same industry keen to optimize their purchasing management and supply chain management;will also enlighten the thinking path for other multinational enterprises.