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Dr Neale O'Connor, CPA (Aust)
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The China Supplier 1000 Project - Largest ever face to face interview study conducted.
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China supplier prom
1.
Neale O’Connor FCPA
School of Business The University of Hong Kong 1 China Supplier 1000 Project
2.
China Supplier 1000
Project 2 Research Papers Talk to industry Talk to industry 2 COPYRIGHT © 2011 Neale G. O'Connor. All rights reserved. www.nealeoconnor.com
3.
China Supplier 1000
Project Largest ever face to face interview study of Chinese Suppliers Electronics industry focus Exploring how Chinese suppliers win contracts and manage their large customers. Questions/Challenges? What emphasis do Chinese suppliers place on the use of different performance measures? Do suppliers that align their measures with the largest customer perform better? Do suppliers with customers for a longer period use different performance measures? Do Chinese suppliers manage customers from different countries differently? Do Chinese suppliers that have specific strategy for their largest customer have different performance measures? With regard to risk assessment – how Chinese suppliers are managing the key challenges associated with rising material and labour costs? 3 COPYRIGHT © 2011 Neale G. O'Connor. All rights reserved. www.nealeoconnor.com
4.
4 A. Performance
Measurement - Importance5.1 Overview The most important measurement criteria in the decision whether major customer order from supplier is quality, followed by cost and delivery. (n=217) Figure 5.1 Performance measurement importance COPYRIGHT © 2011 Neale G. O'Connor. All rights reserved. www.nealeoconnor.com
5.
5 A. Performance
Measurement - Importance5.2 Country of Origin N Compared with other customers, the importance put on technology by American customer is higher, while cost is more important for Chinese customer than others, and service is more important for European. However, all of Chinese, European, American and other Asian customers regard quality as the most important criteria. (n=221) C I PM F T Figure 5.2 Performance measurement importance – country origin COPYRIGHT © 2011 Neale G. O'Connor. All rights reserved. www.nealeoconnor.com
6.
6 A. Performance
Measurement – Importance5.3 Customer Size N (n=221) C I PM F T Figure 5.3 Performance measurement importance – % sale to largest customer COPYRIGHT © 2011 Neale G. O'Connor. All rights reserved. www.nealeoconnor.com
7.
7 A. Performance
Measurement - Importance5.4 Investment Commitment N Quality is more important to customers who relatively get more recurring investment from their suppliers, while customers with less recurring investment value cost more. (n=217) C I PM F T Figure 5.4 Performance measurement importance – investment commitment COPYRIGHT © 2011 Neale G. O'Connor. All rights reserved. www.nealeoconnor.com
8.
8 A. Performance
Measurement - Importance5.5 Sharing Performance Measurement N Although all of the customers value quality most, customer sharing performance measurement put more importance on technology and cost, while delivery and service is more important to not-sharing customers. (n=221) C I PM F T Figure 5.5 Performance measurement importance – sharing performance measurement COPYRIGHT © 2011 Neale G. O'Connor. All rights reserved. www.nealeoconnor.com
9.
9 A. Performance
Measurement - Importance 5.6 Accurate Forecasts N (n=217) C I PM F T Figure 5.6 Performance measurement importance – the extent that actual order quantity equals the planned forecast quantity COPYRIGHT © 2011 Neale G. O'Connor. All rights reserved. www.nealeoconnor.com
10.
10 A. Performance
Measurement - Importance5.7 Change in Trust N Trust Trust-decreasing customer doesn’t pay much attention to service as other customers, while trust-increasing customer doesn’t care about cost too much, but value quality most. (n=217) C I PM F T Figure 5.7 Performance measurement importance – change in trust COPYRIGHT © 2011 Neale G. O'Connor. All rights reserved. www.nealeoconnor.com