Effective supply chain integration: case studies for Korean global firms in China

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.