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曝光台 注意防骗 网曝天猫店富美金盛家居专营店坑蒙拐骗欺诈消费者 Send it to my email, philip_bengtsson@hotmail.com for confirmation and possible change. bengtsso@student.chalmers.se Supplier Dependence in China Philip Bengtsson Chalmers University of Technology bengtsso@student.chalmers.se Introduction During the last ten years more and more global/western companies are moving their production to China. China mainly offers very low salaries. Other advantages are the hard working people, politically rather stable and the fast growing market. However we should be aware of that China also has treats and disadvantages; Cultural differences, low educated worker, quality problem etc. This thesis is about a company that have had problems of all sort in China. Background X is a company that sells radios. X develops the radio, which is produced by another much larger company in China, lets call it Y. X moved due China six years ago, mainly due to dissatisfaction with current supplier. 90 % of X’s sale is in August and September. Present The Chinese company have been producing one similar model for six years and one for three years. However the quality is still very bad. At the tests at X’s company approximately 20 % are sorted out and sent back to China for rework. The quality problem is often due to simple mistakes done in China. The first year of production these kind of problems are normal and acceptable. In September the year before X’s makes his the order for products the next season. According to the production schedule the products should be shipped in March. The last years, the final products haven’t arrived before late July. The reason for this delay is the production problems that Y faces. As stated before, about 20 % must bee sent back because of bad quality. The Chinese company has similar testing machine as X. Supplier dependence The problem is this situation is that X can’t change supplier without making a whole new product design and construction. The construction and design of the radio is owned by X, but they do not own the tool for moulding the frame of the radio. This tool is very expensive and is therefore owned by both companies. This makes it impossible to move the tool to another supplier. So X is dependent on Y as a supplier until X makes a new design, which costs much money for a small company like X and takes over one year. There is a contract between the two companies according to British law. As long as X is dependent on Y as producer, it would be crazy to sue them because of the problems. The trust between the two companies has not been good from the beginning. Y promised X that it shouldn’t be a problem to produce such a high quality product. Y always promises that the products are good and that they should be ready on time, but their promises are seldom kept. Vicious Circle X is not among the biggest costumer of Y. He is a smaller costumer that is dependent on Y. What we can see is that Y in this situation is not really interested in satisfying X as a costumer. X needs to push Y when the products are not coming on time. X has to solve many of Y’s problems and is very involved in their productions problems. If he doesn’t push it’s a risk that he won’t get any radios at before sale season. It becomes a viscous circle; X pushes Y Y delivers radio with bad quality Y has to pay airfreight and rework radios Y is more unwilling to satisfy X as a costumer When the quality problems are detected at X. Y needs to pay airfreight back to China and to Sweden, because the time is running out and shipping is to slow. The next year Y wants more money for his products, because of these expenses. The problem in China is distracting X from visionary and other important work in the company. It takes a lot of energy and concern. The problem recognized at Y are mainly that it’s not a costumer oriented organisation and a short term cutting organisation. The former CEO had a lot of ideas and concept of how to improve the company, but as long at it cost money in the short run, the board of the company was not interested. After two years the CEO quitted his job. Positive Aspects It should be stated that the products that are going out to costumers have very high quality and works fine. The price of the products are so low that it’s still worth producing in China although all the problems. X is also negotiating very hard for lower price, which could affect Y’s willingness to serve him as a costumer. Future strategies China is still in some respect an insecure country and we don’t always get what we want. It’s worth the extra money to invest in the whole moulding tool. A moulding tool gives www.aero.cn 航空翻译 www.aviation.cn 本文链接地址：航空资料31
