How International Firms Insight from Industry Are Coping with Supply Chain Issues in China
Insight from industry How international firms Insight from Industry are coping with supply chain issues in China
Bin Jiang
Introduction
A recent US-China Business Council survey found that US companies cited the supply chain-related problem as a major problem facing companies operating in China. One reason for this is the restrictions placed on providing distribution services through third parties. Foreign firms are required to import products through officially sanctioned trading companies. Third-party foreign trading companies and distributors have been prohibited from direct participation in the market and from providing a complete range of trading and distribution services. Other supply chain-related problems include: . Difficulty in locating local qualified suppliers. . An underdeveloped information technology (IT) and telecommunications infrastructure. . The unreliability of the Chinese transportation infrastructure in many areas. . The high rate of damage/loss in transit. This paper addresses issues of interest to firms wishing to establish their supply chains in China. It provides a snapshot of current problems facing firms expanding operations in China and describes the practical strategies for solving these problems. Finally, it provides a synopsis of lessons learned by firms currently operating in China and future trends in the country.
The author Bin Jiang is a PhD Candidate at the Department of Information Systems and Operations Management, University of Texas at Arlington, Arlington, Texas, USA. Keywords China, Supply chain, International trade Abstract Foreign firms face many supply chain-related difficulties in China. These include China's overburdened, underdeveloped physical infrastructure; inexpert, underfunded state-owned distribution companies; an enormous, fragmented distribution and logistics sector; and regional protectionism. Additionally, foreign firms face bureaucratic restrictions that prohibit them from legally importing,
Bin Jiang
Introduction
A recent US-China Business Council survey found that US companies cited the supply chain-related problem as a major problem facing companies operating in China. One reason for this is the restrictions placed on providing distribution services through third parties. Foreign firms are required to import products through officially sanctioned trading companies. Third-party foreign trading companies and distributors have been prohibited from direct participation in the market and from providing a complete range of trading and distribution services. Other supply chain-related problems include: . Difficulty in locating local qualified suppliers. . An underdeveloped information technology (IT) and telecommunications infrastructure. . The unreliability of the Chinese transportation infrastructure in many areas. . The high rate of damage/loss in transit. This paper addresses issues of interest to firms wishing to establish their supply chains in China. It provides a snapshot of current problems facing firms expanding operations in China and describes the practical strategies for solving these problems. Finally, it provides a synopsis of lessons learned by firms currently operating in China and future trends in the country.
The author Bin Jiang is a PhD Candidate at the Department of Information Systems and Operations Management, University of Texas at Arlington, Arlington, Texas, USA. Keywords China, Supply chain, International trade Abstract Foreign firms face many supply chain-related difficulties in China. These include China's overburdened, underdeveloped physical infrastructure; inexpert, underfunded state-owned distribution companies; an enormous, fragmented distribution and logistics sector; and regional protectionism. Additionally, foreign firms face bureaucratic restrictions that prohibit them from legally importing,