Gates Aluminum Suppress The Product Purchased Localization Project

As the increasing of capacity, quality and management skill of local sub-suppliers', especially after China joints WTO, most of famous foreign invested companies look for local suppliers to build parts localization to meet the demand of lowest cost, fastest speed to develop new car and get quickest service, which highlight by AOE company instead of import from oversea, and also to get more business and more benefits. Under such background, how to select local partnership suppliers and how to risk management will be a good question to research or develop for automobile tie 1 supplier.Based on comprehensive literature review on strategy partnership supplier, this paper investigated the problems during localization process of Gates' shanghai plant aluminum die casting parts, and analyzed the weakness of supplier chain management, to find the more effective method to develop supplier chain. Identify and control the risk of localization process by using APQP & FMEA tools, and based on the actually Gates' performance to highlight the key characters, consolidate the partnership and information share is a best way to achieve the success of localization.At last, the paper summarized the whole and looked up the deficiency, then pointed out the way of future research in this field, and its functions as instructive trials and inspirations to conduct effective supplier chain management of localization.