What You Need To Know

About

Group Members
Muhammad Umar
Muhammad Waqas
Muhammad Mubin
Wasif Iqbal
Shiraz Shahid
Course:
procurement & strategies

Teacher:
Sir Anas Intikhab
OUTLINE

Sourcing from China a challenging experience.
Western aggressive dependence on sourcing from
China.
Breathtaking changes in China.
Weak assumptions & Myths about China.


Supply Chain Operations Reference Model
(SCOR)

Developed by Supply Chain Council (SCC)

SCDC: Independent, not-for-profit Global organization
in 1996.

Started with 69 voluntary companies; now used by
thousands of organization world wide.

SCC Objective: To develop a standard supply-chain
process reference model enabling effective
communication among the supply chain partners.


















Supply Chain Operations Reference Model
(SCOR)
BENEFITS OF SCOR MODEL

Rapid assessment of supply chain performance.


Real identification of streamlined management
reporting an organizational.


structure alignment of supply chain team skills with
strategic objectives.


A detailed game plan for launching new business and
products.

1.PLANNING
(How well Chinas factories manage for tomorrow)

Less then 10 % of companies have formal SOP.

Lack of planning to expand production and
distribution network.

Lack of cross-functional planning.

But surprisingly Chinese are performing much better than
U.S. based companies in planning their manufacturing
activities.

Chinese suppliers show high levels of planning
maturity for their manufacturing activities. The mean
results of the survey were 104 out of a maximum score of
125, well above the mean of 75.8 for our database of U.S.-
based companies.

2.Design and Sourcing
(Identifying the Chinese supplier)


Unstructured End to End Supply Chain.


Only focus on Up-side flexibility.


But Chinese suppliers performance compete U.S. based
companies.


Chinese suppliers have limited abilities in source
planning and execution. The
mean score for Chinese suppliers on our scale of 0 to 70 was
just 43. (But U.S.-based companies did not do much better:
Their mean score is 44.5.)
3.Production capabilities and working conditions.

Effective and Efficient production management.


Focused on economy of scale.


Compliance of environmental and labor laws.

Our maturity
assessments showed that Chinese producers rated
a mean of 50 on a score of 0 to 60compared to
mean of 38.5 for our database of U.S.-based companies.
4.Logistics Infrastructure
Finding & hiring logistics carrier can take several days
Low equipment performance
Space Constraints or Congestion
Lack of Railcars services in the state
RFS capacity problem
Use personal relationships to solve logistics problems
Nowhere near as compared to U.S and European standards

Our research using the SCOR-based survey
revealed high levels of maturity in the deliver
processes of Chinese suppliers. The mean results
of the survey were 102 out of a maximum score
of 120 , well above the mean in
our database of U.S.-based companies (79.3).
5. Conclusion

Best approach is use of agent.

Better understanding of cultural norms.

Short listing of supplier.

Time consuming negotiation process.

Beware of sanctions imposed by U.S govt.

Payment according to milestones