On Auto Parts' Allied Global Sourcing

From the early 21st Century, considering auto market's competition becoming much fiercer and emerging low cost countries'auto parts supply base getting mature, multi-national auto manufactures have executed global sourcing strategy gradually. Recently, with more effort in cultivating supply bases in low cost regions, the mother companies start to league their sub-companies which are located worldwide into procurement alliance, in order to get multi-win sourcing savings by binding volume together. Allied global sourcing is becoming one of the most attractive topics for the study of those Multinationals'low cost international business development.Meanwhile, China has become one member of WTO and is getting deeper involvement in global business. Those Multinationals'global sourcing modes, platform & module design, and global supply chain management are influencing China's auto industry's strategy and operation ways. It is very important to learn how to make a full use of the global sourcing opportunities and get the risks under control.This paper focuses on the study of auto parts global sourcing, and especially on the analysis of the allied global sourcing mode, with the assistance of economic theory, management theory and the author's personal working experience. The main part of this paper starts from giving the concepts of global sourcing and allied global sourcing, then makes an elaborate study of allied global sourcing's operation mechanism and processing ways, which also involve potential supplier evaluation, auto manufacture and supplier's relationship modes, allied global sourcing cooperation and secession mechanism, sourcing cost structure & control, and current suppliers'performance review, etc. After the discussion of allied global sourcing and management, the author gives out practical suggestions for China's auto industry bureau, auto manufacturers and auto suppliers.This dissertation is tried to be a timely and useful reference for China's auto industry to have a clear understanding and successful participation in the new global sourcing trend.