L 公司原纸供应商本土化策略研究

ChapterⅠ Introduction

1.1 Background

Base paper also known as processing paper  for  further processing  into a  variety of paper. Its nature, quality, and specification vary with the processing requirements. Release paper also known as silicone paper. It’s a prepreg prevent adhesions, but also can protect from contamination prepreg release paper.

[CPP114]  News:  According  to  Alexander  Watson  Association  (AWA)  "2015 global release paper  market, the  latest survey report"  shows: 2014, the  global release paper consumption totaled 43,984 million square meters, of which Asia accounted for 37%  of  the  market,  accounting  for  more  than  28%  of  each  European  and  North American markets.  Emerging  economies  in  South  America,  Africa  and  the  Middle East will share the remaining 7% share.

The  report also pointed out  that  high-quality pressure-sensitive  label  material  is still paper-based  and  filmic  release liner  terminal, annual  growth  rate of 4 percent  in 2014, while the  global pressure sensitive tape  market  is showing a thriving scene, the growth rate of about 9.7%.

For manufacturers, the procurement costs occupy the entire production cost for a large proportion,  generally 55% -85%,  if the company can reduce procurement costs, it will  increase profits. Procurement  is one of  the  most important part of all the  work in  the  supply  chain,  supplier  at  the  beginning  of  supply  chain  has  a  very important significance for the entire supply chain.

Paper  companies  due  to  excessive  reliance  on  overseas  imports,  high  cost  in procurement, logistics, inventory, and long production cycle, competitive advantage is disappear.  It  is  imperative  for  implementing  local  suppliers’ development  and management  in  order  to  improve  the  supply  chain  competitiveness.  Creation  and management of  local  suppliers’  partnerships  play  a  decisive  role  for  competition. Supplier  delivery  times,  product  quality, service,  including  technical  service  and maintenance  time  is  crucial to  ensure the smooth daily operation. Therefore, how to develop  and  manage  local  suppliers  and  take  advantage  of  them  becomes  very  hot topic, worthy of corporate research.

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1.2 Significance

Because  of  its  rich  labor  resources,  low  cost,  favorable  conditions  to  undertake the  transfer  of  manufacturing, China  form  characteristics  with  processing  trade  to participate  in  the  international  labor  division.  L  enter  China from  2003,  but  in  the localization  vendor  management  facing  unscientific  of  localization  vendor  selection, unstable manufactured  product  quality,  delivery  delays  and  rising  costs  and  other practical  problems,  and  not  have  a Line  effective  supplier  performance  evaluation system.  This article attempts to explore a similar  multinational property under certain conditions through  L,  how to  select, assess  and  manage the suppliers  localization, to reduce procurement costs, shorten  lead  times and delivery cycle of  raw  materials  for the  purpose  of  business development to  provide  a  stable  and  flexible  supply  of  raw materials localization.

In  this paper, the author takes  L Company as a case  to study  localization  vendor management  improvement  and analysis.  It  provides  a  very  simple  and  practical method for localization vendor management mechanism. In this article, due to narrow localization vendor management of L's case study, it might provide a more simple and practical structure  for  the  supplier  management  related  businesses  with  supplier management  mechanism  mode.  At  the same  time,  it established supplier  localization process  management  to  provide  a  constructive  mechanism  on  the basis  of  related businesses provide a basis for decision making.

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Chapter  Ⅱ  Literature Review

It can be known from chapter I that successful supplier management can help the enterprises  to  reduce  cost,  minimize  the  inventory,  improve  the  competitiveness  etc. Considering the management is not only an art, but also a science, thus, a complete set of feasible theory and method is the premise and guarantee for implementing supplier management. Following part will elaborate some theories of supplier management.

2.1 Basic Theory of Supplier Management

2.1.1 Supply Chain Management

SCM  is  a  special  partner  in  the  form  of  suppliers,  manufacturers,  distributors, retailers and  users. It  has a positive  impact on the entire channel operation; the key  is the activities  integration. Global Supply Chain Forum considers that SCM is  valuable for  the  consumer  products,  services  and  information,  integrated  business  processes from the source to the final consumer suppliers.

The  core  concept  of  SCM  is  mainly  reflected  the  overall  systems  thinking, cooperative thinking, Prime  Thought. Whole systems thinking,  to break the shackles of  corporate  boundaries,  the  core  upstream  and  downstream enterprises,  production, supply,  marketing  and  other  markets  to  establish  external  linkages  of  economic entities, the  formation  of  the  chain  network,  suppliers,  manufacturers,  distributors, consumers  regarded  the  organic  link overall,  the  harmonization  of  information  flow, logistics  and  cash  flow  all  node  members  by  the  overall objective,  to  get  win- win situation;  cooperation  ideology,  SCM  based  on  cooperation  and  win-win  on  each reference  are  all  engaged  in  manufacturing  or  providing  some  of  the  activities necessary  for  the  process,  in mutual  support,  cooperation  and  coordination  to maximize  the overall  interests and benefit, Prime  Thought; SCM  is to  have a  certain expertise and  market competitiveness of  the  upstream and downstream enterprises to cooperate arrangements,  the  core  competitiveness  of  enterprises  merge  into  a  single overall  competitiveness,  improve market  competitiveness,  select  each  node  of  the supply  chain  system,  follow  the  principle  of  combination  of gathering  the  most competitive resources work together, play the whole performance.

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2.2 Related Theory of Localization Supplier Manage ment

Collectively  supplier  management  is  integrated  management  of  investigation, selection,  development,  use  and control  for  the  supplier.  Among  them,  the investigation is the foundation, select, develop, control is the means, use is the goal.

Source: Supplier Management

Localization vendor  management  is  premised  on  suppliers  to  build  supplier networks,  establishing  strategic partnerships  between  companies  and  local  suppliers and the implementation of management activities. Localization vendor management is an  ongoing  dynamic  process,  including  the  localization  vendor  selection  and evaluation, assessment,  localization  suppliers’  daily  management  and  supplier relationship management, localization of content, substantially above this chapter tells Supplier  Management  the  same  content.  Supplier  localization  can  bring  to  the enterprise  communication  smooth  cooperation  convenient,  effectively  shorten  lead times,  increase  the  flexibility  of the  supply  chain  will  help  shorten  product development, improve quality and reduce costs.

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Chapter  Ⅲ  Case Description.................. 25

3.1 Background Introduction of L Group and L Company ............ 25

3.1.1 Company Profile .................. 25

3.1.2 Organizational Structure of L............... 26

3.1.3 Product Introduction .................... 27

3.1.4 General Introduction of L’s Current Supplier Status............ 28

Chapter  Ⅳ  Case Analysis ........................ 37

4.1 Motives Analysis of Implementing Base Paper Supplier localization ........... 37

4.1.1 Cost Savings................ 37

4.1.2 Optimize the Supply Chain ............ 38

4.1.3 Strengthen the Communication.............. 39

Chapter  ⅤSuggestions........................ 48

5.1 Strategies of L select and manage Local supplier .................... 48

5.1.1 Procedure for Selecting Raw Material Local Suppliers...................... 49

5.1.2 Establish Local Suppliers’ Database ............. 51

5.1.3 Establish Strategic Partnership with Suppliers ............ 53

Chapter Ⅴ Suggestions

The  early  stage  of  the  new  suppliers  development  determines  the  L  ‘s  supplier localization management and supply chain operation efficiency in the future. So in the early stage of the potential supplier  selection process, the excellent suppliers can  not only  help  the  company  to  control  costs  and  improve  the  quality,  but  also  both companies  can  grow  up  together  by  active  cooperation.  The  new  supplier development is the foundation of supplier localization management for L.

5.1 Strategies of L Select and Manage Local Supplier

From the third chapter that, L’s paper supplier localization is not high, more than 90% of all  from  United States and Japan and other places, because of aging problems and  high  inventory  phenomenon,  leading  companies  produce passive  damaged interests. Developing  local  suppliers  is an  urgent problem of L;  we  need to re-select providers of local partners.

5.1.1 Procedure for Selecting Raw Material Local Supplie rs

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Chapter  Ⅵ  Conclusions and Prospect

6.1 Conclusions

Localization  supplier  management  is  a  problem  in  recent  years  has  been widespread  concern,  this  paper  studies on  the  basis  of  previous,  reviews  supplier management,  supplier  localization,  supplier  local  management  theory, takes  L company  as  an  example,  proposed  contents:  in  the  modern  supply  chain  system, strategic  partnership of  manufacturers  and  suppliers  has  become  a  key  factor  in determining  the  efficiency  of  the  supply  chain  and even  in  success.  This  paper constructs  successively  supplier  selection  model,  performance  evaluation  model  of AHP,  and  Motive  Analysis  of  localization,  dilemma  analysis  of  paper  supplier localization,  risk  prevention  of  paper supplier  localization,  improve  local  suppliers ability analysis,  in order  to resolve L's current procurement,  low supplier localization lead  to  logistics,  inventory  costs  high,  long  production  cycle  and  other  issues,  and proposed paper supplier localization coping strategies.

This  paper  tries  to  put  forward  some  of  own  ideas  in  the  field,  as  well  as  the author’s  thesis  research capacity  limited  and  paper ’s  length  and  structure,  in  some places  still  need  continuous  improvement.  This  will also  be  the  author ’s  future research  directions:  (1)  the  model  established  only  some  qualitative  analysis,  not quantitative calculations.  In addition,  the  model  is  feasible, but  also  the actual proof. (2) This is just a simple analysis of the supplier management, no more in-depth study. For  other  deficiencies  of  the  paper,  the  author  implores educated  teachers  to  give criticism  and  recommendations,  to  benefit  from  themselves,  and  continuous improvement.

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