Study On Improving RNG Company‘s Supplier Management Under The Cost Pressure

Along with the rapid China economic development and gradual increase of Chinese resident‘s income, the consumption of car has surged year by year. Global top carmakers and automotive parts companies have accelerated to set up branch factory in China in order to capture the increasing potential of China auto market. As well as local automakers have caught up fast, which form sharp competition in China automotive market. Price down became the most important way to capture the market share. The profit margin of automotive industry has been decreased continuously due to the fierce competition among the carmakers. The car makers and its suppliers have to enhance cost control management and reduce cost actively so that they can survive under the grim competition. As one of Tier 1 interior supplier of three top Japanese carmakers in South east China, RNG Company has been facing with the fierce competition from Japanese interior companies and local interior companies. As well as the sound-proof parts which are RNG Company‘s main product have been confronted with intense cost competition due to its attribution as non-core car parts.This article is to adopt RNG company‘s supplier management as a case study, and interview with relevant employees from RNG Company and so me of its suppliers, synthetically apply some related theory of supply chain management and purchasing management and combine with author‘s more than 10 years purchasing management experience in foreign enterprise to analyze to analyze the problems in RNG company‘s supplier management cover from supplier selection、supplier qualification、supplier performance measurement and supplier relationship management to supplier performance continuous improvement etc. To solve these problems, Lowest Total Cost Ownership will be the basis of decision make, The Fish-bone Diagram will be applicable to cause and effect analysis, Weighted Sum method will be used to measure and improve supplier performance measure system, PDCA method will help to improve supplier performance, As well as the Strategic Sourcing and supply chain management will cover the whole process of supplier management.The aim of this dissertation is to explore a kind of method to help RNG Company improve supplier management 、 reduce purchasing cost and raise operational efficiency, so as to enhance company‘s competitiveness, as well as offer a new angle of thinking and reference for researchers and decision makers, and relieving currentsituation of RNG company.