Supply Side Risks Assessment of the Supply Chain : A case study of the Supply Side Risks Assessment in HUAWEI’s Supply Chain
Abstract: Research questions 1. What kind of risks in the supply side of HUAWEI supply chain can be identified? 2. How can supply side risks of HUAWEI supply chain be assessed? 3. How can supply side risks of HUAWEI supply chain be mitigated? Purpose This paper describes supply side risks in HUAWEI in China, the types of risks identified, provides guidelines for assessment of these risks and suggestions for mitigation. Methodology In order to answer above research questions empirical data have been collected through observations, interviews at with logistics managers of HUAWEI in China, and from the official documents, annual reports and authentic web pages of the HUAWEI. Theoretical framework has been built through scientific articles, peer reviewed journals, authentic web based documents, and textbooks. The information is then assessed and analyzed, which result in conclusion and recommendations for the company. Conclusion There can be four major risks identified on the supply side. Manufacturing risk, logistics risk, information risk and inventory risk. The manufacturing risk include risks related to production, skill, and quality. The logistics risk further include delivery risk, lead time risk, and transportation risk. Production risk and skill risk are critical and they can be avoided by enhancing risk awareness, evaluating production feasibility, strengthen staff training, investing in high skills, strengthening R&D, and analysis of the external environment. The quality and inbound delivery risks can be reduced through supplier inspection and establishing good supplier relations. Lead time risk and inventory risk can be reduced by vendor based managed inventory system and mass customization. Meanwhile, transportation risk can adopt risk transfer strategy. The information risk can be reduced by increasing information sharing levels and adopting modern communication technologies.
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