Case Study Finish Companies Outsourcing in China

CASE A

Situation analysis

A Finnish company specializing in sports clothes, working closely with athletes and sports clubs, has five suppliers in China after changing them from Estonian ones. Thanks to the friend of the owner of the company, it was easier to start collaborating with Chinese. The company has one employee in china who checks the cloth’s quality once a week.

Identification of main issues and problems

The company has still many complexities and problems. The most important problem is delivery reliability.

Generation and evaluation of alternative solutions

Amongst alternative solutions we can distinguish automation in manufacturing process or official money penalties for not keeping the arrangements.

Recommended solution and justification

The best possible solution now seems to be automation process in supply management. It would improve the manufacturing process through better control. There should be any strict procedure connected with potential delays in deliveries and the company should have access to the suppliers’ database. It can work as for example weekly reports from suppliers about the progress in the manufacturing process.

Implementation

In the perspective of 1 year, the company should create an automatic system of supply controlling to involve its suppliers in it. To be able to start the cooperation in a good way from the very beginning.

CASE B

Situation analysis

A company offers injections and reaction injection-moulded plastic parts from single products to part assemblies buying the moulds ready for production and other raw materials from China. Amongst company’s motivation for choosing China there are lower costs, delivery reliability, precise culture, knowledge technology and the lack of suppliers in other countries. Cooperation is working quite smoothly and organized. The business is conducted in English. The company uses sea and air transport.

Identification of main issues and problems

The company has a perfect...