Despite Weak Links, The Supply Chain Is Still Effective.

Due to the relatively limited physical and technological infrastructure, China's supply chain is often asked to "do more with less money".

The information systems and operating procedures of many production enterprises are obsolete, and it is difficult to track the production performance indicators of the factory.

Multinationals face many difficulties and challenges in integrating their own enterprise resource planning (ERP) systems and their IT partners in China.

If we can better understand the supply chain of Chinese partners, these problems caused by IT integration obstacles can be better controlled.

For example, a retailer's business in North America uses radio frequency identification (RFID) and mobile technology, which enables them to keep track of products and components in the entire chain from suppliers to consumers.

At the same time, they utilized advanced analysis techniques aimed at terminal sales data to optimize product planning and forecasting.

The company has recently entered the Chinese market to make better use of China's product supply capability while developing potential new markets.

When L.E.K. consulted and analyzed the company's three year marketing development strategy, it was found that many operations related to the implementation of the revenue and the timing related forecasts were incorrect.

This is because the US side misunderstands the infrastructure and real-time reporting capabilities of Chinese partners.

L.E.K. consulting is working with company management to study how to achieve short-term basic supply chain integration and plan its long-term integration strategy.

Compared with other countries,

The supply chain can achieve a commendable operational efficiency under relatively limited resource conditions.

Now that the supply chain can flourish to the present level under such material conditions, imagine the future of China under the more advanced infrastructure conditions.

What level can we reach?

This is why everyone is aware of the importance of cloud computing to China.

Cloud technology can provide limited data connection and information sharing, so as to achieve effective cooperation between enterprises and organizations. All of these do not require huge investment in new technology, or spend a lot of time to integrate and integrate the entire supply chain.

The existing IT facilities and massive data have actually become the burden of the supply chain of many developed countries, while many Chinese supply chains start with a blank sheet of paper, which enables them to use cloud computing to straddle traditional learning curves and rapidly improve their operational flexibility.

During the "12th Five-Year plan" period (2011~2015), China plans to focus on the field of information industry.

More than 1 trillion yuan, of which cloud computing is one of the important investment areas.

Just as cellular communication technology has enabled developing countries in South America, Africa and other regions to move beyond the traditional fixed line service development stage into mobile phone communication directly, cloud computing has the potential to achieve similar leap forward development in China's manufacturing industry.

Multinational companies tend to oversimplify the domestic supply chain from overseas.

Executives will go to China every year for a small number of dragonflies, and are mostly limited to big cities like Shanghai or Beijing.

Many multinational companies mistakenly believe that one China's partners are enough.

In reality, multinationals need a wide range of cooperation in China, and these local cooperation is the key to success.

Building a cooperative relationship with the entire supply chain requires effort and commitment.

Face-to-face business meetings are more effective in any culture, and China is no exception.

Moreover, Chinese entrepreneurs will be more likely to establish successful business relationships with people they know and trust.

The strategic partners of multinational enterprises in China are not limited to Chinese companies.

Like DHL, Cardinal Health and TAL, multinational companies providing logistics services are also actively thinking about how to cooperate with other multinational companies and Chinese local companies to expand their service areas.

At the same time, there are many partners in China that can provide different services to support the needs of multinational enterprises in different stages of China's business development.

For example, an enterprise can hire an auditor to collect sales data manually, and at the same time, enterprises can build and distribute their own networks simultaneously and automate them.