My IBM colleagues have published an interesting paper on winning in China’s mass markets and there are lot’s of essentials for global supply chain management or in this case on supply chain management in China. Structure follows strategy. The key question is if your business model and supply chain operations aligned with your China strategy. There are several implication on your operational design of your whole supply chain.
In this research paper three operational levers were identified.
Sales and distribution channels – Transform inefficient, multi-layered sales and distribution channels suffering from limited collaboration and visibility into far reaching, cost-effective channels that provide valuable information about end customers
R&D and procurement – Develop products tailored to the needs and price points of the China market; develop deeper collaboration with cost-effective local suppliers
Human resources – Alleviate talent shortages and develop a large pool of cost-effective, scalable talent with the right skills for mass markets.
The first two of them are SCM related. I like this paper because the reader will receive deep insight in forthcoming trends on servicing China’s mass market and it’s a good example how to design supply chain strategies based on your business strategy.
Posted by aconris 