供应链管理英文论文

Strategic Supply Chain Management

战略供应链管理

The supply chain strategy of Xoceco Electronic

厦华电子的供应链战略

Module No: 336BSS

Name: JiZhi Liu

Student No: 3356456

Contents

Ⅰ. Executive Summary --------------------------------------------------------3

Ⅱ. Introduction ------------------------------------------------------------------3 Ⅲ. Introduce of Xoceco Company -------------------------------------------3 Ⅳ. Xoceco Electronic Company's sales performance--------------------4 Ⅴ. The difficulties Xoceco Electronic Company faces ------------------4

Ⅵ. External Environment Analysis------------------------------------------5

6.1 Xoceco Electronic Company of the overall resource

6.2 The advantages of Xoceco Electronics Company

6.3 The disadvantage of Xoceco Electronics

6.4 The analysis of the chance Xoceco Electronics face

Ⅶ. Xoceco Electronic Company's supply chain strategy----------------9 Ⅷ. Conclusion ------------------------------------------------------------------10 Ⅸ. Reference---------------------------------------------------------------------11

The supply chain strategy of Xoceco Electronic

Ⅰ.Executive Summary:

Since the beginning of 1990s, rapid development has taken place in color TV manufacturing in China. From then on, the color TV enterprises have been in a more opener and more competitive environment. The management of supply chain is one of the most basic and important elements of color TV industry. It has become increasingly important in a changing industrial environment. The successful management strategy of supply chain has become an important means for color TV industry to acquire and preserve the competitive edge. This thesis, based on Xoceco Electronic, one important color TV manufacturing enterprises, analyzes the circumstances, resources and conditions of the Corp, framed in supply chain management and strategic management theory, and propose the supply chain strategy for Xoceco Corp.

Ⅱ.Introduction:

Xoceco Electronic Company is a professional enterprise in TV. And with the economic boom of China, Xoceco Electronic has got a huge development in recent years. But it also has a number of problems, such as service issues, the shortage of fund, employee payroll problems and the discrete problem of supply of raw materials. By use quantitative analysis and qualitative analysis, we analyze the data and the problems of Xoceco Electronic and then put forward corresponding measures to solve these problems.

Ⅲ.Introduce of Xoceco Company:

Xoceco Electronic Company was founded in December 1985.In February 1995, "Xoceco Electronics" appeared on the Shanghai Stock Exchange Market. Xoceco is a professional enterprise in TV, and focus on TV for twenty years. Since 2003, the main

focus of Xoceco shift to LCD TV, plasma TV and digital high definition television, high-end product innovation, R & D and manufacturing. As a domestic brand Xoceco firstly enters into the field of flat-panel TV business, and in the field of technology research and development, international operations, the brand has accumulated a relatively solid foundation. Xoceco has nearly 10,000 employees worldwide, and the headquarters has a state-level technology center, post-doctoral workstations, and 16 R & D platforms in the world, with production bases at the headquarters of Xiamen and South Africa, Europe, Central Asia.

Ⅳ. Xoceco Electronic Company's sales performance

In 2008 Xoceco had sold various types of color TV in a number of 3.87 million units, compared with growth of 17% over the same period in 2007, the company achieved sales revenue of 8, 425 million, compared with descend of 66% over the same period in the last year and flat-panel TV sales make up roughly 73% of total revenue.

In 2009 Xoceco Electronic Company had sold various types of color TV in a number of 3.4 million units, down 12% over 2008. The sales income is 643,213 Yuan, down 23.31% over last year, of which flat-panel TV sales make up roughly 77% of total revenue.

Ⅴ.The difficulties Xoceco Electronic Company faces:

Except the common difficulties that all the Chinese color TV enterprises faced, Xoceco Electronic Company, have encountered a number of specific problems in the self-development process:

1. The company has loss in operation for two consecutive years. The company suffered a shortage of funds, and due to bank loans are too high, the financial cost remains high, the company's operating leverage was negative.

2. The competition of color TV market becomes more intensified. Accompany with the export of company now declined and a shrinking share domestically, the company has brought greater difficulties.

Ⅵ. Xoceco Electronic Company's External Environment Analysis: Chinese society, rapid economic development

In recent years the Chinese economy continues the rapid development of double-digit rates, economic strength has been greatly enhanced, and the living standards of people rapidly rise. The GDP of China has ranked second in the world. There are more than 1.3 billion people in China; the annual TV demand is nearly 40 million units. With a substantial increase in the urban and rural incomes and disposable income, Chinese TV especially Flat-panel TVs usher in a good development opportunities for the rapidly growing of Chinese market (Premkumar 2001).

6.1 Xoceco Electronic Company of the overall resource:

1. The production base of Xoceco Electronics Company

Xoceco Electronics is headquartered in Xiamen; in Xiamen Island has three production bases. After 2006, Xoceco Electronic Company began investing one hundred million Yuan of annual output build a raw sound base for flat panel in Xiang’an Zone. And it will be completed and commissioned in 2008. Also Overseas, Xoceco Electronic Company has several production bases overseas, such as South Africa, Europe, and Central Asia. Visible, Xoceco Electronics will be increasingly improved its production capacity and will be very strong to lay the foundation for mass production in the future (Premkumar 2001).

2. Xoceco Electronic Company Human Resources

At present, Xoceco Electronic has nearly 7 thousand employees, headquarter has a state-level technology center and a post-doctoral stations. And there are 16 global R & D platforms. According to a 2006 report, in the end of 2006, the headquarters of Xoceco Electronics corporate has staff of 7,263 working people, including 574, 868 in the field of management and 344 in the field of technical classes and sales class and 5477 people in the other field.

3. The asset condition

After the huge losses for two consecutive years, by the end of 2007, Xoceco Electronic Company has total assets of 3,161,020,300 Yuan. Since 2005, the company's asset-liability ratio and financial costs have been higher, and the gradual upward trend. In 2005 and 2006, the rate of assets and liabilities were 77.73% and 91.51%, the financial cost is 91.83 million Yuan and 94.38 million Yuan respectively. In the end of 2007, the company's balance has reached 103.18%. The asset of the company has become a negative asset.

6.2 The advantages of Xoceco Electronics Company:

Xoceco Electronic focuses on LCD TV, plasma TV and digital high definition television, high-end product innovation, R & D and manufacturing for twenty years. Accompany with the accumulation of management experience and technology in China's color TV industry over the years, the Xoceco Electronic still have certain advantages, mainly reflected in:

1. The technology advantages of TV

Xoceco Electronics has the advantage relative to domestic firms in the field of Digital HD, LCD TV, plasma TV above.

2. The upstream supply and financial support from the major shareholder of company With the reorganization of Xoceco Electronic by Chunghwa Picture Tubes, it creates a domestic color TV enterprises combination with the upstream supply chain for the first time. So Xoceco Electronics has chance to enhance the competitiveness and continue to become bigger and stronger to lay a solid foundation. Chunghwa Picture Tubes, which is a listed holding company, is currently ranked third in Taiwan and the world's fifth LCD panel plant.

3. Xoceco Electronic Company in domestic and international market has established some brand awareness

After twenty years of hard work, especially in the digital high-definition TV, flat panel TVs and other fields, Xoceco Electronic Company not only in the country obtains a higher visibility and recognition in the international community but also

played a certain degree of visibility. Xoceco Electronic Company obtained a higher-end brand image in the domestic and international market.

4. Excellent business management

Xoceco Electronic Company is not large in the industry for many years, but has got a big achievement in the innovation and development in business management. Xoceco Electronic Company is a strong learning organization, and a number of advanced management methods will soon be accepted and implemented (Porter, 1996). So after years of improvements and enhancements, the operation and management of Xoceco Electronic company is in an advanced position.

5. The advantages of the Xiamen Airport

Modern and efficient TV manufacturing industry has a higher demand on logistics, and color TV manufacturers are increasingly demanding the rapid and timely supply of raw materials, and convenience and low cost of large quantities of color TV exports. In the Xiamen, a busy international airport and a excellent deep-water port can provide the conditions above.

6.3 The disadvantage of Xoceco Electronics:

1. The scale of enterprises is small. Xoceco Electronics is a small-scale enterprise in the domestic color TV industry. And small-scale lead to Xoceco Electronics cannot develop its strong points, avoid its weaknesses, and win a favorable position

2. The discrete problem of supply of raw materials. As Xiamen is not in the Yangtze River Delta and Pearl River Delta, which is two of the most economically developed regions, and Fujian's industrial base, especially for the electronics industry base is relatively weaker than coastal areas. These factors make the most of raw materials of Xoceco have to be supplied from the Yangtze River Delta, Pearl River, even Hong Kong, overseas and other places available.

3. Undue reliance on dollar area market. Xoceco Electronics has maintained a large proportion of export sales structure for a long time, and the rate between the domestic market and international market had reached 7:3. The most products of Xoceco are

exported to the U.S. market. In recent years U.S. economic downturn and the depreciation of the dollar gave Xoceco a very negative impact.

4. The problem of domestic sales channels. Due to a large number of domestic appliances chain stores continue to integrate and the chains for manufacturers to choose are fewer and fewer, it leads to the big chain stores of home appliances color TV enterprises have a growing voice to obtain more profits (Stephan 2006).

5. Employee payroll problems. The personnel turnover is big, and the problem of brain drain is serious.

6. Service issues. Xoceco Electronics has a series of problems in service all the time, which bring a greater impact on terminal sales.

7. The shortage of fund. The problem plagues Xoceco for many years, and it always hinder the development and expansion of Xoceco.

6.4 The analysis of the chance Xoceco Electronics face:

Despite Xoceco Electronics has continuous losses for two years, but from the point of the current global and China's economic environment, Xoceco Electronic still faces many growth opportunities.

1. The global flat-panel TV market is still expanding rapidly.

Not only the developed markets of Europe and America flat-panel TV are still growing, the majority of developed markets such as Southeast Asia, Latin America, the flat-panel TV demand of the Middle East, Russia, Africa and other regions is growing rapidly, so it provides Xoceco Electronics the opportunity to expand its export sales.

2. The Chinese flat panel TV market will grow substantially.

With the continued rapid growth of Chinese economy and a substantial increase in people's living standard, purchasing power increased quickly. Especially the rural market is still relatively flat-panel TV market needed to be developed, and the huge market demand will soon be released.

3. Science and technology base is still growing. The development of science and technology base can urge TV technology upgrading quickly. The emergence of the new TV products can also provide color TV manufacturers opportunities to continue developing. As long as it can follow the trend of technological development, TV production companies will have the opportunity to stand out from the industry.

Ⅶ.Xoceco Electronic Company's supply chain strategy:

TV industry has become increasingly dependent on the competition of supply chain strategy. And in the modern full, intense competition, the traditional competitiveness based on the prices and commodity competition become increasingly depend on the supply chain competitiveness (Akintola 2000). Xoceco Electronics as a supply chain core business of that, it must design a strategic supply chain again to ensure its competitiveness, and give services to the overall strategy of Xoceco Electronic Company

First, improve reaction capacity of supply chain for innovative products. Xoceco will build the world's largest flat panel production base in the Xiang'an Industrial Park, and focus on flat-panel TV. Company's products will be shift into high-end, innovative products. The supply chain of rapid response and innovative products must be related to the entire supply chain and all aspects of supply, such as raw materials, R & D, manufacturing and marketing (Anna 2004).

Second, cost leadership strategy of mass production

In the current color TV manufacturing industry, gross profit margin is very low. The gross profit margin of Xoceco Electronic main business is less than 10%. And the proportion of the cost of production materials is in a high percentage. Clearly, large-scale production will lead to cost savings of the material and bring huge benefits (Keah 2001). Xoceco Electronics must take advantage of the massive expansion in the recent years to prepare a strategic plan for supply of raw materials and reduce material

supply costs. At the same time, large-scale production will reduce the cost of R & D, design, administrative expenses, advertising, sales and other fields, and it will make the scale effect to be particularly evident. Also it will enable enterprises to achieve cost leadership and competitive advantage (Malik 2001).

Third, the control of the distribution process must be strengthened (Qin Su 2008). The scale of Xoceco Electronic Company will expanded rapidly, the product will also be transformed into high-end, innovative ones. To serve this kind of overall strategy, the supply chain distribution process of Xoceco Electronic must meet the rapid response strategy; in addition as the core of this enterprise, Xoceco Electronics must integrate not only the supply chain, but also the distribution process into their control gradually (Simon 2000). Also with the expansion of scale, Xoceco Electronic must reduce its reliance on distribution channels.

Ⅷ. Conclusion:

Improve reaction capacity of supply chain and strength the control of the distribution process are typical effective measures. And the series measures will ensure the company get rid of the present problem and get improvement in the competition with other manufacturers.

Ⅸ. Reference:

Akintola, A. et al. 2000.A survey of supply chain collaboration and management in the UK construction industry .European Journal of Purchasing & Supply Management, 6(3-4), pp. 159-168

Anna, D. et al.,2004, Supply chains and interdependence: a theoretical analysis . Journal of Purchasing and Supply Management, 10(1), pp. 3-9

Keah, C.T.2001.A framework of supply chain management literature.European Journal of Purchasing & Supply Management, 7(1), pp. 39-48

Malik, M. A. et al. 2001.Readiness Assessment of the construction supply chain for concurrent engineering . European Journal of Purchasing & Supply Management, 7(2), pp. 141-153

Porter, M. E., 1996. Journal of What is Strategy?. Harvard Business Review, 33(5), Pages 3-6

Premkumar. G. P., 2001. Journal of Interorganization Systems and SCM. Information System Management, 42(6), pp. 5-7.

Qin Su . et al. 2008. The impact of supply chain relationship quality on cooperative strategy. Journal of Purchasing and Supply Management, 14(4), pp. 263-272

Simon, C. et al.,2000.Supply chain management: an analytical framework for critical literature review . European Journal of Purchasing & Supply Management, 6(1), pp. 67-83

Stephan, M. W. & Christoph, B., 2006. An empirical investigation into supply chain vulnerability . Journal of Purchasing and Supply Management, 12(6), pp. 301-312.