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Local Raw Material Sourcing in China

Local Raw Material Sourcing in China


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About the Book

Master's Thesis from the year 2014 in the subject Business economics - Supply, Production, Logistics, grade: A, Tongji University, language: English, abstract: In today's highly competitive and dynamic environment, a companys success is based on the performance of its supply chains. Single companies become part of a supply chain by concentrating on its core activities and source capabilities not belonging to its core competence. The importance of the company's supply base has increased immensely. China is becoming the economic engine of the world's economy. In the early 1980s international companies entered the Chinese market to take part of the countries elusively growth and tried to gain edge. Focusing on the automotive industry, original equipment manufacturer, started to assemble cars from complete knocked down (CKD) and semi knocked down (SKD) kits in manufacturing sites in China. Driven by high import duties and legal requirement set by the Chinese government OEMs started to produce locally for the domestic market encouraging their existing supply chain to build up transfer plants in geographic proximity of their manufacturing site. Supply chains in automotive industry are divided in tiers, depending on their degree of value creation of the complete products; 1st Tier suppliers themselves encouraging their supplier to set up transfer plants in China. The decision to take the existing supply chain result of long term process to enable a supplier for the automotive supply chain. In 2008 China became the largest single country automotive market overwhelming the US market. Increasing price pressure and matured domestic market led to a localization trend within the automotive supply chain to exploit cost advantage by sourcing locally. Therefore supply bases have to be established by assessing companies to be potential supplier. Suppliers create more than 70% of the total value of the final product, resulting in high importance of having excellent supplier. Raw mat


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Product Details
  • ISBN-13: 9783656754312
  • Publisher: Grin Verlag Gmbh
  • Publisher Imprint: Grin Verlag Gmbh
  • Height: 210 mm
  • Weight: 168 gr
  • ISBN-10: 3656754314
  • Publisher Date: 08 Oct 2014
  • Binding: Paperback
  • Spine Width: 7 mm
  • Width: 148 mm


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