Purchasing Process integration in manufacturing industry in China : Case study of three Chinese manufacturing companies

Abstract: Background:China could be seemed as a highly developing country. There are many opportunities and challenges inChina. Its preferential policies and huge potential market attract a lot of foreign companies to come toChina. Meanwhile, Chinese government encourages the development of domestic enterprises. Therefore, at present there mainly coexist three forms of enterprises inChina: foreign-funded companies, private companies and state-controlling companies. In order to enhance competitiveness, almost every company in china has its own supply chain network. Supply Chain management plays an important role in Chinese companies. Research question: 1.     What is the current situation of purchasing process and purchasing process integration for some manufacturers of different ownerships in China?   2.     How can purchasing process be integrated for some manufacturers of different ownerships in China from manufacture’s perspectives?   Purpose: The purpose of this thesis is to study the current situation in purchasing process integration in Chinese manufacturing industry of three kinds of ownership and evaluate the purchasing process of three kinds of companies in China. In addition, it gives some suggestions to remove potential obstacles and optimize the purchasing process; and aims to help the companies to gain competitive advantage in the long term.   Method: The empirical foundation for this thesis is intended to be on multiple case study method. It studies of the three types of manufacturing enterprises in China. To represent these three types of companies, three companies are chosen from each as selected research objects. Data is collected through semi-structure interviews, so the questionnaire would be open-ended. Long-distance telephone interview with purchasing managers and material managers separately for each company would be adopted.   Conclusion: The purchasing process of three companies who represent three different types of ownership is studied. It studies the current situation in purchasing process integration in Chinese manufacturing industry of three kinds of ownership and evaluates the purchasing process of three kinds of companies in China. Then the obstacles in purchasing process are found out. Then suggestions on purchasing process integration are used to tackle these obstacles.   Future Work: This thesis focuses on three manufacturing companies in China. The result of this thesis cannot represent all the obstacles in purchasing process in manufacturing industry in China. But the purchasing process, characteristics, strength and weakness are similar in the same type of ownership. Meanwhile, the recommendation on purchasing process integration also cannot solve all the obstacles found, due to the companies’ own condition. In future research, it recommends to add more research companies. Furthermore, more studies could be included to identify common obstacles and dig out solutions related to purchasing process integration in Chinese manufacturing industry.