Authors: Young Won Park; Junjiro Shintaku; Paul Hong
Addresses: Manufacturing Management Research Centre, Graduate School of Economics, University of Tokyo, Japan, Kojima Hall 5F, 7-3-1 Hongo, Bunkyo-ku, Tokyo 113-0033, Japan ' Graduate School of Economics, Faculty of Economics, University of Tokyo, Japan, Kojima Hall 5F, 7-3-1 Hongo, Bunkyo-ku, Tokyo 113-0033, Japan ' Information Operations and Technology Management, College of Business and Innovation, University of Toledo, USA
Abstract: This paper aims to examine the strategic and operational issues related to supply chain configurations between set-makers and back-end suppliers in China. This paper analyses flat panel display (FPD) manufacturers that operate in China. The case studies examine supply chain practices through low cost module (LCM) and demand chain management (DCM) strategy, which includes the movement of production facilities in China, integration of upstream and downstream suppliers, and vigorous distribution network building. The case study suggests that these firms respond to the growing domestic demand in China while it addresses the competitive challenges in global markets outside of China with their supply and demand network capabilities. We also discuss new forms of supply chain issues of semi-completed products. Findings of this study show Korean global firms in China experience customs and border crossing issues because semi-completed products are delivered to suppliers by manufacturers of hosting countries for the final assembly operations. Future research may explore how global firms promote understanding and support of Chinese Government to facilitate the custom process with greater efficiency. Future research implications on supply and demand chain strategy for global firms operating in China are discussed as well.
Keywords: China; competitive advantage; manufacturing industry; supply chain integration; SCI; liquid crystal displays; LCDs; Korean global firms; Korea; supply chain management; SCM; flat panel displays; FPD manufacturing; low cost modules; demand chain management; DCM; distribution networks; customs issues; border crossing issues; semi-completed products; final assembly.
International Journal of Manufacturing Technology and Management, 2015 Vol.29 No.3/4, pp.161 - 179
Accepted: 03 Dec 2014
Published online: 06 May 2015 *