Supplier Development And Management Of GM In China

Along with the economic globalization, the competition withinautomobile industry became more and more fierce. Under the situation ofcurrent saturated market share, every manufacturer is working on movingtheir facility to overseas to compete with local competitors, trying toincrease their total sales. In order to win in the stiff market competition,one must get competitive advantage, it includes investing R&D,enhancing the quality, improving the appearance design and feature,providing good after service etc. But the most sensitive factor to normalconsumers is still the price. Therefore, manufacturing cost control becamevery important. While above60%component was reached throughoutsourcing, supplier development and management became theimportant portion of company strategy, it will directly impactmanufacturer’s profit, also determine the manufacturer’s marketcompetitiveness.Facing the pressure of manufacturing cost and the requirement ofresources optimization, General Motors began to intensify the purchasingactivities in China since2000’s, complying with global sourcing trend.The advantages to source from China is so obvious, low labor cost, highquality labor resources, good investment environment. But the purchasingin China is not as smooth as people imagine. At the time of introducingGM’s purchasing process, this article will also analyze the difficulties indetail, raising some requirement and expectation to China suppliers. Thisthesis has5chapter. The1stchapter analyzed the necessity of GM’s supplier developmentin China, including the introduction of GM corporation and globalpurchasing organization, as well as the advantage and disadvantage todevelop supplier in China.The2ndchapter first introduced China auto component market,followed with how GM recognize and validate suppliers. Objective andfair supplier validating process is the first step to enter GM supply base,also make supplier realize GM’s requirement and how much the gap is.The3rdchapter is about GM’s daily supplier management strategy,including cost, quality, delivery, performance4aspects. Among them,cost and quality are the key items.The4thchapter introduced how GM develop China supplier to meetGM global unified standard, as well as how to setup continuousdeveloping relationship in terms of joint inventory management and jointnew part development.The5thchapter is the summary, summarized all the content discussedin the article, and raised expectation and requirement to China suppliers.This thesis mainly introduced and analyzed GM purchasing activitiesand experiences, integrated with related theory discussion, hope toprovide some reference to domestic manufacturers and suppliers.