Importance of Supply Chain Management for Mncs in China

Topics: Supply chain management, Logistics, Management Pages: 16 (5289 words) Published: July 28, 2013
Table of Contents

ABSTRACT.............................................................................................................. .5 I. Introduction............................................................................................................. 6 1.1 China’s Retail Market…................................................................................. 6 1.2 China’s logistics condition.............................................................................. 7

II. Supply chain management...................................................................................... 8 2.1 Concept of Supply Chain Management.......................................................... 8 2.2 Elements of the Supply Chain......................................................................... 9 2.3 Three levels of Supply Chain Management.....................................................11 2.4 Supply Chain Management Technology…….................................................. 13

III. The supply chain solution for Multinational giant Retailers in China................. 13 3.1 Wal-Mart’s development in China............................................................. 14 3.1.1 When Wal-Mart first came into China............................................. 14 3.1.2 Challenges Wal-Mart met in China.................................................. 17 3.1.3 Wal-Mart’s supply chain solution in China....................................... 17 3.3 Carrefour’s development in China ............................................................. 17 3.2.1 Introduction of Carrefour ............................................................ 19 3.2.2 Learn from Taiwan’s experience entering into China....................... 19 3.2.3 Supply chain solution of Carrefour in China..................................... 21 IV. Conclusion............................................................................................................ 25 Bibliography................................................................................................................27 Acknowledgements......................................................................................................28

ABSTRACT

Due to the globalization and the increasing purchasing power of Chinese customer, China attracts more and more multinational retail corporations to set their subsidiaries in China. American based Wal-Mart and the French based Carrefour are the two largest retailers in the world and two pioneers in the globalization of the retail industry. This essay introduces the supply chain management solutions of these two multinational retailer giants in Chinese market. The weakness and strengths of the supply chain management of these two retailer giants are also analyzed here. It also points out the importance of supply chain management to the success of multinational retailers. Culture adaption is one of the most important factors for the future expansion of multinational retailers in China.

Key Words: Multinational Retailers; Wal-Mart; Carrefour; Supply Chain Management; China’s Retail Market.

1:Introduction
1.1 China’s Retail Market
The marketplace of today’s China is tremendously competitive. Since China’s economic reform in 1978, China has been developing at full speed. China’s economy has made remarkable gains over the past three decades. The GDP ranked NO.3 worldwide in 2012. China is not only highly successful in capturing world export markets. According to the research of retail industry in China, “In January to June of 2012, Chinas total retail amount of social consumer goods grew at a stable level of about 11%, of which, growth rates in June and July hit 11.3% and 11.1% respectively, 0.7 and 1.1 percentage points (at a low CPI level) higher than the same period last year, reflecting a stabilized trend in actual consumption”.  1-1...

Bibliography: 1. China Retail Industry Report 2012-2015, Sino Market Insight. 2012
2
3. Fang Yang, The Importance of Guanxi to Multinational Companies in China. Asian social science. 2011
4
5. Net sales in China of Carrefour between 2007 and 2011, Cross-cultural Learning, Carrefour in China, 2011
6
9. Mankiw, N. Gregory. Principles of Microeconomics. New York: Thompson South Western; 4th edition, 2006. Print.
10. Mankiw, N. Gregory. Principles of Macroeconomics. New York: South Western; College Pub; 5th edition, 2008. Print
11
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • THE IMPORTANCE OF INFORMATION SYSTEMS IN GLOBAL SUPPLY CHAIN MANAGEMENT. Essay
  • Essay about Sustainable Supply Chain Management
  • Supply chain Management Essay
  • Essay on Supply Chain Management
  • Supply Chain Management Essay
  • SUPPLY CHAIN MANAGEMENT Essay
  • Essay on supply chain management of Walmart
  • Essay on supply chain management

Become a StudyMode Member

Sign Up - It's Free