Sourcing Unique Components in the Electro-Mechanical Engineering Industry from Chinese Suppliers

Diploma Thesis from the year 2007 in the subject Engineering - Industrial Engineering and Management, grade: 1,0, University Karlsruhe (TH) (Institut für Produktionstechnik - wbk), language: English, abstract: Sourcing relatively simple standardized commodity-like items from Chinese suppliers already poses considerable sourcing challenges. But methodologies and best-practice guidelines exist to identify Chinese suppliers, to develop them, and to establish a global supply chain. However, the case of sourcing unique components from Chinese suppliers is not widely published in the academic literature. Unique components are complex from an engineering point of view, and they are ordered in low volume.

Based on a multiple-case study in the electromechanical engineering industry, the result of this thesis is a best-practice guideline for sourcing unique components from Chinese suppliers. The guideline addresses the involvement of different functions including quality assurance with the Chinese supplier, and it shows the different approaches the case companies take for selecting the suppliers. Also, the companies¿ production management is addressed.

The conclusion is that there are two promising approaches depending on the customer¿s re-quirements. One approach is to outsource engineering and manufacturing as far as possible, the other is to engage in a close buyer-supplier-relationship.