Global Companies' Supply Planning Strategies in China: Behavior, Process, Motivation, and Cases

Author: Li Xinjia
Publisher:
Publish Date: 2005-10-26
Features: This book is the research outcome of a sub-project titled "Strategic Responses of Multinational Corporations to Chinese Enterprises in a Buddhist-Influenced China," led by Professor Mao Yunshi of the School of Management at Sun Yat-sen University and supported by the National Natural Science Foundation of China. The research demonstrates that multinational corporations have essentially established a supply chain system in China, which is relatively complete. The key points include:
(1) Achieving vertical disintegration of investment projects in China by establishing factories on the mainland;
(2) Increasing control over upstream enterprises through capital increases or establishing wholly-owned subsidiaries;
(3) Acquiring and merging with China's supporting enterprises;
(4) Actively cultivating and assisting local suppliers;
(5) Strengthening cooperation with other foreign-invested enterprises in China;
(6) Guiding Chinese raw material and component enterprises to form joint ventures with foreign suppliers;
(7) Establishing procurement centers in China to expand procurement activities;
(8) Continuing to leverage overseas resources for global sourcing;
(9) Setting up R&D centers to provide technical support for supporting enterprises;
(10) Strengthening business integration in China through regional headquarters to coordinate supply chain, product production, R&D, and sales;
(11) Integrating China's supply chain into the global supply chain system;
(12) Forming a corporate governance model aligned with its supply chain strategy;
(13) Fully utilizing modern information technology and computer technology to improve the supply chain system in China.