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    Terry Gou: I Am Doing Experiment &Nbsp In China; The Supply Chain Will Save The World.

    2010/10/23 10:07:00 98

    Foxconn Terry GouChina's "Experiment" Industrial Chain Recast


       Foxconn At the end of the year, the news of settling down in Henan caused a great uproar. Meanwhile, rumors that it invested tens of billions of dollars to build factories in Chengdu has spread like wildfire. In 20 Tsinghua Management Global Forum, President of Foxconn group terry gou Although not detailed response, but also confirmed the above rumors in the conversation. Terry Gou said he was in. China is "experimenting". Moving the eastern coastal factories westward, this is all his " Industrial chain recast "Related.


    The following is an excerpt from the viewpoint.


    Terry Gou:


    Industries are changing all over the world, and supply chains are changing. For example, energy, I am from Shanxi, we produce coal, how to transfer the cheapest coal to many power plants to generate electricity, and how to import a lot of valuable oil from overseas is the problem of supply chain.


    When I was married in Taiwan 08 years ago, Ma Ying-Jeou told me that I wanted to attend your wedding, but I would check your supply chain. I was going to Tainan to order the most famous duck, then I changed to Yilan. Because the cost of transporting a duck is probably higher than that of the duck itself.


    As for the food supply chain, I saw a report recently that a small town in Europe refused to drink French Evian mineral water, and a bottle of water should be transported in 12 times of oil. Since then, I will not drink Evian. Unless there are important guests, I will drink warm boiled water from my home.


    So the supply chain can be large and small.


      From global factories to global markets


    My factories in Taiwan and China are facing the problem of supply chain. Take TFT (commonly known as "real color") as an example, made of semiconductors. Any electronic product will be unbalanced if it is manufactured by semiconductor. Since any semiconductor will cover a new factory, it will take 18 months. So its supply is increasing step by step. Every time you supply it, you suddenly increase a lot. Demand is linear, so half of the demand is larger than supply, and half is more than supply. So there are problems in the supply chain of mobile phones and televisions nowadays.


    Foxconn is now doing experiments in China, which is also supported by national policies. We are going to move the eastern coastal factories to the West. For example, the biggest problem of relocation recently in Chongqing, Chengdu, Zhengzhou and Wuhan is also the supply chain.


    How to shorten the supply chain? We must do vertical integration and maintain the most expedite information communication with our customers. Therefore, we should integrate the intermediate processes and manage them directly and effectively. I am making efforts in this respect.


    In China, Foxconn is also promoting "galloping horses". Many employees go home to start their own businesses. We encourage them to start their own businesses as owners. China's supply chain is probably very mature in big cities, but it is far from enough in backward rural areas, which also includes after-sales service of products. As long as the employees of Foxconn have been working for five years, they will provide him with the opportunity to start their own businesses. We are going to open 10000 in five years, so that these employees can replenish the supply chain, repair products and teach customers to use them. Through the transformation of supply chain to reduce intermediate costs, consumers can get timely and cheap products.


    China has many opportunities. China is now the world's manufacturing plant and will become the world's market. {page_break}


      Supply chain will save the world


    The market is always high and low. We can only do weather forecasts, we can not control the weather. For the supply chain risk of the electronics industry, I think there are three aspects of risk that should be recognized.


    First, technology is developing too fast. I have started exporting TV sets in the United States, and now I have been playing video games for thirty-eighth years. How to sell products to every corner in the shortest time and put pressure on inventory, which may make you turn over the whole market.


    Secondly, the network economy causes consumers to change too quickly. Japan is a very closed consumer society. But I didn't expect Iphone to sell "soft" in Japan. In the younger generation, the age of the consumption group is decreasing, and the change of habit is a risk.


    In addition, the world economy and politics will also bring risks, and exchange rate will have an impact on the supply chain. Although our most important eggs are in China, Foxconn has factories in Mexico, Brazil and so on.


    Supply chain is a very important problem. Supply chain management is not only finished goods logistics, but also manufacturing logistics, and even raw material logistics. The whole supply chain is very helpful to the economy.


    China is the world's manufacturing plant and will become the world's market in the future. The supply chain will play a big role. So we try to do this and share our experience with you.


    We should not spend too much time in financial investment and financial operation. We should study supply chain improvement and produce great value. No matter Foxconn or WAL-MART, it's a good unit of work. Don't go to Goldman Sachs or big Moroccan. It's just a game of money, and the supply chain will save the world. {page_break}


       [reading notes] "containment" Terry Gou


    Although Li Rongrong, the former director of the SASAC, was present, Terry Gou was the last to come out from the VIP room. Behind the crowd, he picked up the phone and was not influenced by the flash of reporters. He could see that he was in a good mood today.


    "Give me a cup of warm water," he whispered to the staff, then sat down, pulled out his glasses and put on. When WAL-MART CEO spoke, Terry Gou kept writing his pen. When Guo spoke, less than a minute later, he married himself and talked about his daughter, who was one and a half years old. Even because his daughter wanted to eat sugar on the video phone, she called for new technology and realized the timely delivery of the Internet.


    Last year, I saw Terry Gou in Tsinghua Management Global Forum. At that time, he did a whole day listener in Tsinghua's lecture hall and did not speak out. I can see that today he still likes being an audience. When the guests on the stage discussed "entrepreneurship management", the paper in Terry Gou's hands was filled with dense notes.


    When planning the "galloping horse" plan, there must be some resonance with these topics? Terry Gou said he would encourage people who worked in Foxconn for five years to go home and start their own businesses. And this scale will reach ten thousand in five years.


    Since Terry Gou came to Tsinghua last year, I am afraid that Terry Gou himself did not think that in the past 38 years, what a heavy year this year has been. Last year, he was not pursued by the media, nor was he specially protected. At that time, Terry Gou opened the door in the lounge of the lecture hall, and talked with reporters. This year, he wanted to interview him as a "impossible task" - only one media, the central level, who was allowed to enter the lounge for interviews.


    Nine security personnel lined up close to the front door of the lounge. As the Lantern Festival started, other media reporters saw the interview hopeless and gradually dispersed, leaving me just waiting outside the lounge waiting for Terry Gou.


    Maybe it was my "Ba Ba" that shocked security, and their face relaxed after 2 hours. I said to the security men, you don't need so many people here. I am a girl. It's easy to deal with. We can see that security is trying to make themselves look - their leaders are not far from being supervised.


    When the door opened, Terry Gou walked out and was immediately surrounded by security. Unable to attend to the cold and hunger, I rushed over. The unexpected thing was that the "wall" that had been so impermeable had flashed a gap so that I could "shout" at close range. "Hello, Terry Gou, I am a reporter for Chinese entrepreneurs. Can I ask you some small questions?"


    "I'm very sorry, but I have given all my time to Tsinghua today."


    The "human wall" gap is reclosed and no longer accessible. Under the escort of security, Terry Gou hurried away.


    Perhaps behind this kind of high security is the helplessness of troubled times.

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