15 Best Practices for SM in China

Abstract

As emphasised by various supply experts in industry and academia, supply management and all China activities must be part of the corporate and centralised strategy. China offices such as those of Deutsche Bahn, Bombardier and Volkswagen are part of the strategic supply management process. However, many companies have not yet executed the paradigm shift from a traditional towards a modern supply school, thus losing the competitive advantage. Chinese suppliers are still often seen as immature and low cost, where this is not true anymore. China is a mature and developed country with a highly innovative supply base. Articles and interviews disclose that best-in-class or excellent companies integrate supply management and the management of Chinese supply networks into their own corporate strategy and corporate management. One company from the automotive industry has integrated the philosophy of a collaborative supply management and the supplier relationship management into its mission. Excellent companies have set up a programme jointly with suppliers which strives for supply management or procurement to excellence (P2E).