Theories And Methods Of Auto Parts Procurement Process In The Global Sourcing Environment: Dana Corporation Case Study

Since 1990 s, the pace of globalization keeps fast. Automotive Industry represents the speed of globalization. To establish the global supply chain is a fundamental element for automotive industry in the world. In China, automotive industry develops fast. In 2005, the growth of vehicles in China takes 23.2% of global growth. China becomes very important area for auto-market. To discuss how to improve china auto parts and become a part of global sourcing process according to the global company requirement is a hot topic.By using supply chain theory and research field of tutor, this article will introduce Dana Corp global sourcing process as example with the supply chain module and theory and analyze china auto parts supply chain pros and cons.Following the consequence of this article, it will be introduced in automotive industry background and supply chain character. Also, this paper will discuss LCC(Low Cost Country) and BCC (Best Cost Country) ,ABC classified suppliers and strategic supplier recognition an global commodity management. By using PDCA cycle the article introduces global sourcing process in plan, do, check and action. At the end of article, the summary will be offered.This article will introduce the global sourcing strategy, commodity supplier selection strategy, best country identification and strategic supplier management tools. Once the strategy is established, the process of supplier development will be introduced by supplier identification, risk mitigation, supplier system assessment, RFQ process (e-rfq process), price negotiation and etc. The evaluation and improvement of supplier chain will be also introduced by the SPFS(supplier performance feedback system) and value analysis/value engineering.In a word, this article is focusing on the process of global sourcing for auto parts. It applies to China auto supply supplier chain and helps China supplier recognize the characteristic of global sourcing process and educated Chinese suppler to be part of global suppliers in the future.