The Procurement Process on Tires of Guangzhou Honda OdysseyOur companyGuangzhou Honda Automobile Co., Ltd. was establishedonJuly.1,1998. It is jointly funded by the Guangzhou Automobile Group and Japans Honda Motor Co., Ltd. as a joint venture, each having a 50% stake. They will cooperate with each other for 30 years. We now have two plantsHuangpu andZengcheng, and the total production capacity has reached an annual output of 360,000.According to market demand, our companyis planning to produce a group of 09 2.4L comfortable version of the Odyssey (amount:2000). So we need to purchase 8000 tires. The company has set up a procurement team and appointedme as leader who are responsible for specific issues. The following are our specific procurement process:STEP ONE Purchase Plan1) M eet with Product Manager to discuss purchasing details:Model of TyreQuantityWhen to supply215/60R1680001) 2,000 per month from Feb. to Apr. in 2011;2) all the supply being finished at the end of April2) Meet with Manager of Financial Department:Funds available: 5,600,000 yuan,700 yuan each on the average;All funds can be supplied at the end of March because of clash flow of the company.STEP TWO Market study1) possible suppliersBrandMichelinENERGYXM1 +Dunlop SPD8HContinentalContiPremiumContactBridgestone TuranzaGR-80CooperZeon ASPModel215/60 R16215/60R16215/60 R16215/60 R16215/60 R16Manufactur ing LocationFranceBritianGermanyJapanAmericaLoad Index95(690kg)95(690kg)99(775kg)99(775kg)95(690kg)SpeedRatingH(210km/h )V(240km/ h)V(240km/h)H(210km/h)V(240km/h)TypeOrdinary carOrdinary carOrdinary carOrdinary carOrdinary carTread Width(mm)215215215215215Flat Rate65%65%65%65%65%Rim Diameter(in ch)16161616162) Economic trends in 2011：Since natural rubber pricehas exceeded the highest record before, the costs of the tyre companies have risen sharply. So the price of tyres may increase, which will likely increase our procurement spending.STEP THREE InquiryDear Sir,We come to know you from your advertisementsand get interested in your products, model of energy XM1+ (SPD8H/Conti Premium Contact/Zeon ASP/ TURANZA). So we are writing to you to get somedetailed information of them.We are one of the leading companies in China dealing with Honda and get reputation both home and abroad.Could you quote the products on FOB price and specifications to us, please? We are on the Third Road of Guangzhong in Guangzhou.We hope to receive your quotation soon and build up a business relationshipfor both of our profit.Yours Sincerely, RoseSTEP FOUR Quotation(of Suppliers)1) MichelinCompany IntroductionOur journey of discovery began in 1891 when Andre and Edouard Michelin developed the first detachable bicycle tyre. Taking only minutes to repair, the tyre carried cyclist Charles Terront to victory in the now famous Paris to Brest race. The Michelin brothers, however, began a journey that took them much further than the finish line. Their innovation revolutionised the world transport industry.From Europe to Asia to the America, each of our manufacturing plant around the world follows the same uncompromising code of quality standards. Wemake tyres to improve the driving experience for all motorists. The journey is unending because our destination is always perfection.Catalogue and PriceBrandMod elManufact uring LocationLoadIndexSpeedRatingTyreTypeTread Width (mm)Flat RateRim Diameter (inch)Price(RMB)ENERGYXM1 +215/6 0 R16France95(69 0kg)H(210 km/h)Ordi nary Car21565%16800Products Description: Innovative Green X technology gives the silicon tires superior traction, at the same time, making less energy loss. Thereby it reduces the wear resistance andstrength, to achieve even bettergas mileage than the average effect of the tire, and the extension of tire life. Michelin Energy XM1 rolled four benefits -saving, environmental protection, comfort and quiet, high mileage-into one.2) DunlopCompany IntroductionOur company has developed rapidly and become the vanguard of the industry, and soon expanded into a multinational business group. It has set up production facilities and export production equipment in Germany, France, Canada, Australia and the United States. Dunlops products are the symbol of tires of high performance, high-quality. From events that cars driving on the track to daily driving of cars on the road, people can see the footprints of Dunlop.Catalogue and PriceBrandMod elManufact uring LocationLoad IndexSpeed Ratin gTyreTypeTreadWidth(mm)FlatRateRim Diameter (inch)Price( RMB )SPD8H215/ 60 R16Britain95(69 0kg)H(240 km/h)Ordi nary Car21565%16745Product Description: It is great value for comfortable high-class cars. And it is of the necessary use for