Managing Supply Chains in China:
An Elective Course for MBA program
Prof. Xiande Zhao
Chinese University of Hong Kong
Tel. 852-29790608
E-mail: xiande@baf.msmail.cuhk.edu.hk
第十二届全国MBA《生产运作管理》教学和学术研讨会
Director of Center for Supply Chain Management and Logistics
Li & Fung Institute of Supply Chain Management/Logistics
http://lf-scml.baf.cuhk.edu.hk/index/
第十二届全国MBA《生产运作管理》教学和学术研讨会
Organization Structure
Li & Fung Institute of Supply Chain
Management & Logistics
Center for Logistics Technology &
Supply Chain Optimization
Center for Supply Chain
Management & Logistics
Supply Chain Management Research Center
Joint R & D Center for Supply Chai
& Logistics (with Tsinghua)
Cyber-logistics Research Center
Knowledge Transfer Office
第十二届全国MBA《生产运作管理》教学和学术研讨会
Managing Supply Chains in China
• The objectives for the course are for students
to:
– Understand the business environment in China and roles
that China plays in global supply chains.
– Comprehend Chinese culture and traditions and how
they influence supply chain operations and decisions
– Make important decisions related to the choice of supply
chain strategies, design and improvements of supply
chain processes
– Learn how to select supply chain partners and manage
supply chain relationships in the dynamic business
environment of china
第十二届全国MBA《生产运作管理》教学和学术研讨会
Teaching Methods
Case Method and Participant-centered Learning (CMPL)
advocated by the Harvard Business School
• Students are required to:
• read the assigned cases and articles
• write down answer to these assignment questions
before they come to class
• discuss these questions among their groups, but
individual reports are collected
第十二届全国MBA《生产运作管理》教学和学术研讨会
Teaching Methods
The instructor will:
– facilitate the case discussions
– encourage students to:
• participate in the class by sharing their opinions and
insights concerning the managerial issues related to
the case.
• share their personal and working experience
– Share his/her opinion and insights with the
students but will not try to make conclusion as to
what will be the best decision.
第十二届全国MBA《生产运作管理》教学和学术研讨会
Teaching Methods
• All cases used in class involve supply chains
that have at least part of the activities in
China.
• Some of the cases are written by the instructor
and some are written by others
• The instructor has direct involvements with the
companies through research, consulting and
other activities and will share information and
insights not contained in the case.
第十二届全国MBA《生产运作管理》教学和学术研讨会
Teaching Methods
• Through these case discussions, we demonstrate
how to:
–
–
–
–
identify problems/opportunities,
analyze them,
recommend a solution and
develop an implementation plan after thorough analyses of
pro and cons of different decision alternatives.
• Students will also learn:
– how to take into considerations of the Chinese contexts in
term of culture, traditions, political, legal and business
environment in making supply chain decisions.
第十二届全国MBA《生产运作管理》教学和学术研讨会
Assessment
•
•
•
•
•
Items
Case reports (individual)
Final Project (group)
(reports and presentation)
Attendance and class participation
Weight
50%
20%
30%
第十二届全国MBA《生产运作管理》教学和学术研讨会
Topics and Materials
• Dec. 14 and 21, 2009
• Introduction and background to supply chain management in China
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A Brief History of China
The Stages of Economic Developments in China
Economic Developments in different regions
Logistics and distributions in China
Challenges and issues for managing supply chains in China
Readings:
1. Supply Chain Management in China: Challenges and Opportunities, lecture notes by the instructor in
the form of ppt
2. Flynn, B. Zhao, X. and Roth A. “The Myth of the Dragon: Operations Management in Today’s China”.
Business Horizon. May-June 2007, Pages 177-183
3. Zhao, X., Flynn, B., Roth, A. V. (2007), Decision Sciences Research in China: Current Status,
Opportunities and Propositions for Research in Logistics, Supply Chain Management and Quality
Management, Decision Sciences, Vol. 38, No.1, 39-80
第十二届全国MBA《生产运作管理》教学和学术研讨会
Topics and Materials
Assignment questions:
1. What are the major challenges for managing supply chains in China?
2. How do Chinese culture and traditions influence supply Chain Decisions?
3. What suggestions can you provide to non-Chinese managers who will
manage supply chain activities in China?
•
第十二届全国MBA《生产运作管理》教学和学术研讨会
Topics and Materials
• Jan. 4, 2010
• Role of Supply Chain Management in Global
Competition
• Value creation through supply chain
coordination
• Strategic Choices in Supply Chain
Management
• Discussion of Li & Fung and Luen Thai cases
第十二届全国MBA《生产运作管理》教学和学术研讨会
Topics and Materials
• Jan. 4, 2010
• Role of Supply Chain Management in Global
Competition
• Value creation through supply chain
coordination
• Strategic Choices in Supply Chain
Management
• Discussion of Li & Fung and Luen Thai cases
第十二届全国MBA《生产运作管理》教学和学术研讨会
Topics and Materials
• Jan. 4, 2010
• Role of Supply Chain Management in Global
Competition
• Value creation through supply chain
coordination
• Strategic Choices in Supply Chain
Management
• Discussion of Li & Fung and Luen Thai cases
第十二届全国MBA《生产运作管理》教学和学术研讨会
Topics and Materials
• Readings:
• “ Fast, Global, and Entrepreneurial, Supply Chain Management, Hong
Kong Style: An Interview with Victor Fung” Harvard Business Review,
Sep/Oct, 1998, Vol. 76 Issue 5, p102-114
• Luen Thai Holdings Limited - Creation of Value through Supply Chain
Integration, case developed by Luen Tai Supply Chain Management R &
D Center, Peking University
• Fisher, M.L., “What is the right supply chain for your product?”, Harvard
Business Review, March-April 1999, pp. 105-116
• Mason-Jones, R., Naylor, B. and Towill, D.R., 2000, “Lean, agile or
leagile? Matching your supply chain to the marketplace”, International
Journal of Production Research, Vol. 38, No. 17, pp. 4061-4070
• Lee, Hau, 2004, “Triple A Supply Chain” Harvard Business Review,
(case No. R0410F)
第十二届全国MBA《生产运作管理》教学和学术研讨会
Topics and Materials
• Assignment questions for Li & Fung Limited
case: (due at the beginning of class on Jan. 4.
2010)
– What roles does Li & Fung play in the supply
chain?
– How does Li & Fung create value for its
customers?
– What are some of the key success factors of Li &
Fung?
第十二届全国MBA《生产运作管理》教学和学术研讨会
Topics and Materials
• Assignment Question for Luen Thai (due at the
beginning of class on Jan. 4. 2010)
• How does China’s entry to WTO change the competition
in the garment and textile industry?
• What are some of the major challenges and
opportunities for Luen Thai when China enters into the
WTO?
• What strategic choices did Luen Thai make and how did
it implement its strategy?
• What are the major differences between Luen Thai and
Li & Fung in term of its strategies and supply chain
models? Please comment on the pros and cons of their
strategies and supply chain models.
第十二届全国MBA《生产运作管理》教学和学术研讨会
利丰分散生产模式：
• 分散生产是如何实现的？
利丰公司
订单
订单
纺纱
织布，染色
（韩国）
（台湾）
订单
销售
（美国）
销售
拉链，纽扣
制衣
（位于中国的日
本工厂）
（泰国五个工
厂）
（欧洲）
18
利丰是如何实现增值的?
利丰在香港做高附加值 的供应链前端和后端工作.
前端
后端
设计
质量控制
工程
测试
生产计划
物流
它通过包括7500个供应商网络，其中有2500
个能即时响应供应商， 来组织中间低附加值
部分的生产。
原材料和辅料供应商
制造商
19
Winning Model in the New Era
新时代的致胜模型
Winning Model: Design and Logistics Driven
致胜模型﹕由设计及物流所推动
Information Technology Platform 信息科技平台
Design &
Development
设计及开发
Manufacturing
生产
Sourcing
采购
Logistics
物流
Store
零售店
Logistics and Compliance Platform 物流及推行平台
联泰
Pioneering the New Model
新模型的先驱
Luen Thai Supply Chain City
One Stop Shop – Development Center
联泰供应链城
一站式 – 开发中心
Production
&
Warehouse
生产及仓库
Under construction
Production
&
Warehouse
生产及仓库
Print & Wash
Facilities
印花及洗水设施
Dillard’s Development Center
Dillard’s开发中心
Technical Center技术中心
Fabric & Accessories
Testing Lab
布料及配件测试中心
POLO Development Center
POLO开发中心
兴建中
Employee Amenities
员工酒店
Design Center
设计中心
Topics and Materials
• Jan.11, 2010
• Strategic alignments in supply chains
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Competitive strategy
Order winners/qualifiers
Operation Strategies
Supply Chain Strategy
Impact of environments on strategies and performance
Discussion of Galanz case
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第十二届全国MBA《生产运作管理》教学和学术研讨会
Topics and Materials
• Jan.11, 2010
• Strategic alignments in supply chains
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–
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Competitive strategy
Order winners/qualifiers
Operation Strategies
Supply Chain Strategy
Impact of environments on strategies and performance
Discussion of Galanz case
–
第十二届全国MBA《生产运作管理》教学和学术研讨会
Topics and Materials
• Readings:
1. Lecture notes on strategic alignments in supply chains in the form of ppt.
2. Operations Strategy of Galanz, case developed by center for supply chain
management and logistics, Chinese University of Hong Kong
•
• Assignment Questions for Galanz Case (due at the beginning of class on Jan. 11,
2010):
1. What lead to the success of Galanz company? Please analyze the company from the
perspectives of competitive strategy and operations strategy?
2. What should Mr. Leung do to lead his company to greater success? How should the
company set priorities and utilize its resources and capabilities to gain competitive
advantages in the marketplace?
3. Should Galanz develop its OBM business in the international market? Should Galanz
contintue its OEM and ODM business?
第十二届全国MBA《生产运作管理》教学和学术研讨会
Topics and Materials
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Jan. 18, 2010
Relationship Management and Supply Chain Integration (SCI) in China
Major Types of SCI
Factors that influence SCI: power, trust, and relationship commitment
Roles of Information Technology in SCI
Issues and challenges of managing supplier and customer relationships in
China
Readings:
1. Lecture notes on relationship management and supply chain integrations in the form of
ppt
2. Flynn., BB., Zhao,X., Huo,B., Yeung,J. (2008) “We've got the power! How customer
power affects supply chain relationships” Business Horizons, 51, pp. 169-174
3. ASTEC Power: A Division of Emersion Network Group, case developed by center for
supply chain management and logistics, Chinese University of Hong Kong
第十二届全国MBA《生产运作管理》教学和学术研讨会
Topics and Materials
Assignment Questions for Li & Fung and Luen Thai (due on
Jan. 18,2010)
1.
How did Luen Tai and Li & Fung manage relationships and integrate their
supply chains?
Assignment Questions for Astec Power case (due at the beginning of
class on Jan. 18,2010)
1.
2.
3.
What is the competitive and supply chain strategy for Astec?
How did Astec integrate its supply chain? What can be improved and how?
How do power, trust and relationship commitment influence supply chain
integration?
第十二届全国MBA《生产运作管理》教学和学术研讨会
Topics and Materials
Jan. 25, 2010
• Product Recalls and alternative strategies for handling recalls
• Problems and issues related to recent recalls of product made in China
• Product recall strategies and component of product recall systems
• Consumer reactions to product recalls
• Corporate social legitimacy and responsibilities
Readings:
1. Lecture notes on product recalls
2. San Lu’s Malamine-Tainted Milk Crisis in China, Asia Case Research
Center, University of Hong Kong
第十二届全国MBA《生产运作管理》教学和学术研讨会
Topics and Materials
Assignment Questions for San Lu Case (due
at the beginning of class on Jan. 25, 2010)
1. What are the major causes of this crisis?
2. How should the crisis be handled and how product
recall strategies influence the company in terms of
corporate social legitimacy, customers response and
company’s competitiveness
3. What advice would you give to companies in this
industry in terms of how to design and manage their
supply chains to avoid future crisis such as this?
第十二届全国MBA《生产运作管理》教学和学术研讨会
Topics and Materials
Feb. 1, 2010
• Supply Chain Quality Management
• Problems and issues related to recent recalls of product made
in China
• Framework and components of supply chain quality
management systems
Readings
1. Mattel case, case developed by Ivey School of Business
2. What happened in the toys industry of the world? Material
developed by the center for supply chain management and
logistics, Chinese University of Hong Kong
第十二届全国MBA《生产运作管理》教学和学术研讨会
Topics and Materials
• Assignment questions for Mattel Case: (due at the
beginning of class on Feb. 1,2010)
1. What are the major costs of a product recall to the
company? How does product recall influence the
performance of the company?
2. Please analyze the root cause of the problem using quality
management and supply chain management principles?
3. What will be the necessary components of supply chain
quality management systems in order to prevent future
quality problems?
4. What advice can you give to companies who are sourcing
from china?
第十二届全国MBA《生产运作管理》教学和学术研讨会
Topics and Materials
• Feb. 8, 2010
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Managing logistics in China
Logistics infrastructure and systems in China
Challenges of managing logistics and distribution in China
Logistics Outsourcing
Third party logistics (3PL) service providers and collaborations
between users and 3PL providers
• Readings:
1. IDS case, Case developed by Standford Business School
第十二届全国MBA《生产运作管理》教学和学术研讨会
Topics and Materials
• Assignment questions for IDS case (due at the beginning of
class on June 5)
1. What led to the demise of traditional distributors in Asia?
2. What distribution/supply chain challenges did companies faced as it
tried to address the expanding markets in Asia?
3. What is Value Chain Logistics? What benefits were provided by
supply chain solution providers, such as IDS, to companies there
were trying to grow in Asia?
4. How sustainable was IDS value proposition to companies? In other
words, how sustainable was IDS’ business model?
第十二届全国MBA《生产运作管理》教学和学术研讨会
Topics and Materials
Feb. 22, 2010
• Managing distributions and retail operations in China
• Competitive strategies in the retail industries
• Logistics and distributions strategies and operations
•
• Readings
1. DCH Logistic’s Plan for LaCafetiere, case developed by center for
supply chain management and logistics
2. Wal-mart Stores: “Every Day Low Prices” in China. Asia Case
Research Center, The University of Hong Kong, HKU591.
•
第十二届全国MBA《生产运作管理》教学和学术研讨会
Topics and Materials
• Assignment questions for DCH Logistics (due at the
beginning of class on Feb. 22, 2010)
1. What should DCH Logistics do for its client: LaCafetiere?
2. What should DCH Logistic do to further develop its business?
• Assignment questions for Wal-mart Stores: “Every Day Low
Prices” in China (due at the beginning of class on Feb. 22,
2010)
1. Why is Wal-Mart successful in the US? What are its competitive
advantages and its source of advantages?
2. Should Wal-mart replicate its domestic model in its original form in
China? Why?
3. How should Wal-Mart adjust its strategies, business models and its
logistics/distribution systems to achieve success in China?
第十二届全国MBA《生产运作管理》教学和学术研讨会
Topics and Materials
• March 1, 2010
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Green supply chain management and sustainable developments
Issues and challenges for green supply chain management in China
Reverse logistics
Sustainable operations and supply chain strategies
• Readings:
1.
2.
3.
Lecture notes on green supply chain management and sustainable developments
Wal-mart China: Sustainable Operations Strategy, Ivey School of Business Case
collection, developed by School of business and Economics, Tsinghua University
Porter, M.E. and Ver De Linde, C. (1995) “Green and Competitive” Harvard Business
Review, 120-134
第十二届全国MBA《生产运作管理》教学和学术研讨会
Topics and Materials
• March 1, 2010
•
•
•
•
•
Green supply chain management and sustainable developments
Issues and challenges for green supply chain management in China
Reverse logistics
Sustainable operations and supply chain strategies
• Readings:
1.
2.
3.
Lecture notes on green supply chain management and sustainable developments
Wal-mart China: Sustainable Operations Strategy, Ivey School of Business Case
collection, developed by School of business and Economics, Tsinghua University
Porter, M.E. and Ver De Linde, C. (1995) “Green and Competitive” Harvard Business
Review, 120-134
第十二届全国MBA《生产运作管理》教学和学术研讨会
Topics and Materials
• Assignment Questions for Wal-mart China: Sustainable
Operations Strategy case (due at the beginning of class on
March 1, 2010).
1. Why does customer patronize Wal-mart China Stores? What does
sustainability mean to them and how important is it?
2. How should sustainability be incorporated into vendor selection and
evaluation? How could vendors be encouraged to participate in Walmart China’s sustainability initiatives?
3. What are the distinguishing features of Wall-mar China’s distribution
system? How does it achieve relatively high availability with similar
level of stocks to other companies?
4. How can Wal-Mart improve sustainability in its distributions and retail
operations (consider “reduce, reuse and recycle” as well as
innovation)?
第十二届全国MBA《生产运作管理》教学和学术研讨会
Other Activities
• March 8, 2010
• Group presentations of a case or a company related project.
• Lecture on managing supply chains in china by Mr. Tommy
Lui, General Manager of IDS China
• Lecture on supply chain management and lean
manufacturing by Mr. Raymond Tan, Executive Vice
President of Luen Thai
• Visit to IDS/Li & Fung, Astec Power and Luen Thai
第十二届全国MBA《生产运作管理》教学和学术研讨会
Case Book on Operations and Supply Chain Management
Long Cases
•
Operations Strategy of Galanz Group:
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Astec Power: A Division of Emerson Electric Network
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Competitive Strategy and Operations Strategy
:
Supply Chain planning and Integration, Cross Border Logistics.
Luen Thai: Building the world class apparel supply chain:
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Strategic Choices in Supply Chain, Supply Chain Integration and relationship management
Medium Cases:
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Sims’ Logistics: 3PL services for La Cafetière
Flextronics: International Sourcing, centralized vs. decentralized purchasing
KELON’s Shunde Plant: Inbound logistics management under diversified
overseas consumer demands, modularization and postponement
Supply Chains in India
Short cases:
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Huawei: Innovation and Technology Management
Hai’er: competing through customers services
Wu’xi Guo Sheng Precision Molding Company
Nikon
Lung Kee
第十二届全国MBA《生产运作管理》教学和学术研讨会
Center for Supply Chain Management and Logistics
Li & Fung Institute of Supply Chain Management & Logistics
The Chinese University of Hong Kong
Q&A
Thank You
第十二届全国MBA《生产运作管理》教学和学术研讨会