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Jurgen Thiele is Purchasing Manager for Volkswagen in Japan. At the time of the case, he is facing two challenges: (1) the clash between German expatriates and Japanese staff. Being in Asia as an expatriate causes various issues, such as payment, language problems or business relationships; and (2) Volkswagen is implementing a global on-line procurement platform. Jurgen Thiele has to make recommendations on how to implement the platform with the Japanese suppliers. Special attention is given to the on-line reverse auctions, since they are Volkswagen''s innovation and since they may give rise to larger challenges with Asian suppliers. Huge cost savings can be achieved by applying this tool. By solving the case, students should gain an understanding of cultural issues that western expatriates generally face with special focus on appropriate compensation schemes. Furthermore, Volkswagen''s new on-line purchasing strategy should be understood and evaluated.