Supplier Selection for China Sourcing Project
Aims
- To provide a set of tools to assess potential suppliers in China based on understanding of their current and potential capabilities
- To understand processes with key activities for UK OEM companies when outsourcing manufacturing in China
- To identify core competences and dynamic capabilities of companies providing manufacturing service
Background
As China opens itself to the world, more and more companies from western countries are seeking to leverage China's low cost manufacturing and abundant resources. Most multinational companies listed in the Fortune 500 have extended their businesses to China. Those UK OEM companies which seek to manufacture in China and which do not have the advantages of a big MNC, have more difficulties because of lacking of resources and local contacts. This project tries to help UK OEM companies to develops frameworks and tools to tackle their China sourcing and supplier assessment issues.
Component and manufacturing activities sourcing in China is more and more adopted by foreign companies. Chinese manufacturing service providers are recognized to have low cost advantages over western peers, but their quality and delivery performance are regarded as challenging issues. At the same time, China still lacks of support for foreign companies, such as the absence of local company catalogue.
China sourcing projects normally present a tough job for every foreign company, which is not only because of the complexity of the sourcing process, but also a lack of systematic supplier assessment method. It is argued that, to be more general, understanding of potential suppliers' current and potential capabilities is needed in the supplier selection stage to make a rational partner decision. This project seeks to provide solutions for these issues.
Research Scope
The project includes development of a systematic China sourcing process and tools for the assessment of suppliers' capabilities.
Proposed activities with companies
| Phase I | The researchers will identify process and supplier assessment tools for UK OEM companies' China sourcing projects. Three companies have been studied. It is hoped that collaborations with additional companies will help the development of the tools. |
| Phase II | The researchers will visit manufacturing service providers - both western successful EMS and Chinese manufacturing providers, to help understand suppliers' capabilities and to further develop assessment tools. |
| Phase III | China sourcing process and supplier assessment tools will be tested and implemented with UK OEM companies in sourcing projects. |
| Phase IV | Comprehensive project reports and formalized tools will be presented to collaborating companies before the end of the project. |
UK companies, Chinese subsidiaries, manufacturing service providing companies and Chinese companies are warmly welcome to participate to this project via different types such as collaborative development, consultation, or case studies.
Benefits to companies
- Tools and processes will be provided for China sourcing project and assessment of partners / suppliers' current and potential (dynamic) capabilities.
- Detailed information about China, such as organizational / human behaviour, location / industry sector information, Chinese manufacturing companies' resources, capabilities and strategies.
- Other UK companies' methods and experiences of collaborating with Chinese manufacturing companies.
- Companies will have access to researchers with extensive experience in the manufacturing transfer process.
Outcomes
- Systematic process with key activities for UK companies' when sourcing manufacturing in China
- Supplier assessment tools for understanding current and potential capabilities
Further information from:
Yongjiang Shi E: ys@eng.cam.ac.uk
