Supply chain management is defined as the management of the flow of goods and services that involves the movement and storage of raw materials and finished products. Improved supply chain management (SCM) capability is essential for firms in New Zealand that are often distant from their suppliers and the market as well as it enables them to maintain or sustain effective efforts that are essential for competition within the ever-growing and demanding business environments. Enterprises in New Zealand such as Huawei have to deal with advances in technology, ever-growing competition, and short-life cycles among other issues that necessitate effective supply chain management. Huawei uses improved supply chain management to establish strategic supply chain management, facilitate supply chain collaboration, and effectively share quality information.
Improved supply chain management certainly helps organizations to secure cost, technology, quality, delivery, and other competitive advantage strategies in different ways. Huawei has integrated the use of strategic supply chain management to enable it to maintain or sustain more profitable and productive operations in the ever-growing competitive business environment (Basnet, Childerhouse, Foulds, & Martin, 2006). Additionally, the firm uses strategic supply chain management to act as a chain-link between manufacturing and supply processes of raw materials, through to their ultimate customers. Thus, supply chain management helps to reduce the firm’s overall production cost to ensure that the end products are not too costly for the target customers to afford them. Furthermore, it enables Huawei to meet the specification standards of the end products and service delivery, as well as, service performance and reliability. Effective supply chain management also helps Huawei to enhance its products or service delivery so that they can meet the needs of their ultimate customers in a fast way.
Another benefit of supply chain management is that it promotes collaboration between stakeholders of an enterprise to ensure an effective flow of information and materials in a supply chain. Huawei has integrated collaboration practice into its supply operations to maintain and sustain a competitive edge in the competitive business environment. Thus, Huawei enjoys a wide range of benefits such as improved resources, time, cost, and risk management and incremental business value and innovation. Essentially, supply chain involves different stages and effective supply chain management tends to encourage the parties involved in the Huawei supply chain to engage in collaborative practices such exchange of resources and information, and sharing of risks, profits, and losses that may be registered. Thus, it helps Huawei to achieve the common aim of maximizing the total supply chain profitability and add value to their ultimate customers (Agus & Hassan, 2008). Huawei often encourages all stakeholders to jointly coordinate and participate at various stages of the supply chain to enable for effective problem-solving and making of appropriate decisions to allow the firm to achieve its common aim.
Information sharing is also a fundamental and effective aspect in Huawei’s supply chain management. Huawei often encourages stakeholders to engage in information sharing practices to enable the firm to fulfil the demands of their ultimate customers more quickly. Sharing of information such as sales trends, inventory levels, and forecasting data certainly helps the organization to reduce the high costs that may always be incurred in excess inventory programs, as well as, it improves the forecast data accuracy. Huawei benefits from information sharing practice as to a large extent, it coordinates various physical flows and interdependencies in various supply chain stages (Khan, & Siddiqui, 2018). Effective decision-making and problem-solving at these supply chain stages often include all their stakeholders such as the suppliers.
Huawei has also integrated technology into its supply chain management for various reasons. For example, the firm uses technology to conduct research and develop new products such as 5G phones to enable them to maintain or sustain a competitive edge over their competitors. Besides, it uses various forms of technology to enhance the information sharing practice. These forms of technology enable Huawei to exchange information across electronic networks or platforms such as e-commerce, with all their stakeholders and ultimate customers. Thus, the integration of technology has benefitted Huawei by lowering its administrative costs related to sharing of information with their stakeholders, as well as, the ultimate customers.
To sum up, through the use of improved supply chain management, Huawei has established itself as one of the most competitive firms in the global business environment. The firm has integrated strategic supply chain management into its operations that has enabled maintenance of profitable and productive operations in the competitive business environment as well as reduce overall production costs. Besides, the firm has integrated supply chain collaborative practices into its operations to ensure that the risks, profits, and losses are shared fairly amongst its stakeholders to achieve the common aim of maximizing the total supply chain’s profitability and adding value to the ultimate customers. Integrating information-sharing practice into the firm’s operations has helped all stakeholders involved to jointly solve problems and make effective decisions at various stages of the supply chain.
Agus, A., & Hassan, Z. F. (2008). The strategic supplier partnership in a supply chain management with quality and business performance. International Journal of Business and Management Science, 1(2), 129. Retrieved from https://search.informit.com.au/documentSummary;dn=719407054646337;res=IELBUS
Basnet, C., Childerhouse, P., Foulds, L. R., & Martin, V. (2006). Sustaining supply chain management in New Zealand. International Journal of Logistics Systems and Management, 2(3), 217-229.
Khan, A., & Siddiqui, D. A. (2018). Information Sharing and Strategic Supplier Partnership in Supply Chain Management: A Study on Pharmaceutical Companies of Pakistan. Asian Business Review, 8(3), 117-124. Retrieved from https://abc.us.org/ojs/index.php/abr/article/download/162/395