The Supplier Localization Research Of FL Shanghai Company

With the global economic integration and international marketing competition strongly, the world manufacturing center is being transfer to China. Multinational companies continue to set up factory in China for cost saving and getting more market. Materials purchase cost in the manufacturing sector which be accounted for a large proportion. About70%materials purchase cost is be used in some multinational manufacture. So how to control the purchase cost is to become a very important part of the corporate international operations. Supplier localization is the main way to reduce purchase cost and management cost on local supplier.This paper theory is base on transaction cost theory, value chain theory, Tariff barrier theory and comparative advantage theory. And reference background of the paper is the profile of FL Electronics (Shanghai) Co., Ltd. It analyzed FL company supplier localization issue. The paper introduced the localization study status in the oversea and China firstly, then show FL company background. It study current situation of FL supplier localization and the facing issue on supplier localization process. Finally, it bring up the suggestion and measures according to FL actual status.how to improve current status problem.