Risk Minimization in Global Sourcing (China)

Researcher:

Dr. R. Alard, Dr. Y. ZHU, Dr. O. Schneider

Financed by:

Sino Swiss Science and Technology Cooperation Program (SSSTC).

Motivation:

For Swiss companies, the Chinese procurement market is of great interest. However, the Chinese procurement market is a difficult one for Swiss companies and poses a lot of challenges. One critical and key issue for Swiss companies is the loss of bargaining power over time, as Chinese suppliers often become very powerful due to their strong economical growth. From a Swiss perspective, this can lead to serious problems or even to the loss of this supplier. The end of a long-term relationship
results in high additional costs. A new supplier has to be found and a new buyer-supplier relationship has to be developed.

Objectives:

The objective of this proposal is, in cooperation with our Chinese research partner (Chinese Academy of Science and Technology Management, Tongji University, Shanghai), to prepare and conduct case studies with selected Chinese companies. The topic of these case studies is the buyer-supplier relationship and the development of the mutual dependence and bargaining power over time (years).

Activities completed:

Preparation of the workshops and questionnaires started in 2009; Chinese translations were carried out in January 2010. Workshops in the area of Shanghai and Beijing haven been hold in January 2010 and Sumer 2010 with all together nine Chinese companies. SSSTC Final Scientific Report written in Fall 2010; results also presented on conferences.