Study On Base Paper Supplier Localization Strategies Of L Company

With the economic globalization pace speeding up and international market competition intensifies; China has become the world’s manufacturing center. Multinational companies have set up factories in C hina to gain more market space and profit, enhance enterprises’ competitiveness. In the manufacturing industry, procurement costs account for a large proportion of the total cost, a number of multinational companies is 70% of the cost for materials purchase, which makes it very important to control procurement costs. Supplier localization became core for procurement management of multinational companies in C hina.In this paper, the author started from the theory of localization management and content, on the basis of domestic and foreign research, did a comprehensive narrative for supplier management theory. In this paper, the author took L Company as a case, she noted the crisis triggered by L’s base paper supplier: the cost is high, high stock up a lot of capital; delivery of long delays in production, competitive advantage disappears. Company L paper supply 90% dependent on imports from United States and Japan, resulting high cost in procurement, logistics, and inventory, needs raw materials localization. The most prominent problem of L in raw material localization process is enterprise provider lack of capacity.The paper described the base paper suppliers localization status of L, and motivation of L paper supplier localization, explore the plight L looking for qualified local paper suppliers, the risk analysis of L’s paper supplier localization facing and ability analysis of L paper local suppliers, and further proposed improvement recommendations for local vendor selection, and made L must establish strategic partnerships with local suppliers. For questions and analysis of Company L’s paper supplier localization proposed strategies of L paper supplier localization selection and management: improving the localization vendor selection process, to establish a scientific evaluation system suppliers; Strategies to prevent L Company paper supplier localization risks: establish local vendor database, to establish strategic partnerships with local suppliers; strategies to improve the ability of L paper local suppliers: development through cooperation and financial support, to enhance research and development capabilities of local suppliers, through field visits and regular audits and training to enhance the supplier process capability, quality management and learning ability of strategy, through a platform to introduce customers, improve supplier marketing capabilities. The research results will offer a reference for similar type of companies.