Analysis Optimal Replenishment Strategy Of Electronic Industry In China

With the increasing trend of globalization and outsourcing, China has been a major electronic manufacturing base in the world. As a part of global supply chain, Chinese electronic industry also faces the increasing pressure from rising competition of global market and shrinking profit margins. To keep competitive advantages, manufacturers continuously search the optimal strategies to improve their supply chain. 'Lean' as a well-known management philosophy has been widely adopted by the electronic manufacturers extending to both the upstream and downstream of the supply chain. As 'lean' environment is not mature in China, currently due to the vulnerability supply chain, there are some specific constrains to develop 'lean' strategy in the upstream supply chain. Therefore, the manufacturers could not be successful in implementing 'lean' without appropriate replenishment strategy by the suppliers.In this paper, firstly we introduce the development of 'lean' management. Through analysis the application of 'lean' in different supply chain models, including plan-based supply chain, agile supply chain and hybrid supply chain, we get the optimal supply chain strategy corresponding to the different characters of the market, the product and the supply. We develop a four-box strategy to help companies selecting the supply chain strategy. Then, through an investigation in the Chinese manufacturer, we analysis the risks and constrains of 'lean' implement with the suppliers in China. Base on the particular features of the upstream supply chain environment, by utilizing the four-box strategy, this paper proposed the replenishment strategies suitable for the Chinese enterprises.