The Research On Supply Chain Integration Strategy Of DP(Guangzhou) Company

DP (Guangzhou) Company Ltd., as a wholly own branch of DPES company, which is aleading U.S. automotive electric system solution provider in the world, set up operation inGuangzhou in March,1996. During the period, the targeted key customer was Opel, GM,who was intending to introduce Opel car project to Guangzhou. With the failure of Opelintroduction, as an America base component supplier, company was reluctant to achieve bigbusiness growth from local Japanese customers during short period and was forced toconcentrate on exporting business with both customers and key suppliers far away fromChina..DP (Guangzhou) Company Ltd. calls for strategic supply chain management to meetrequirement of local automobile OEMs. At the beginning of the article, there is a briefintroduction about the company, its supply chain evolution history, and a summary of relatedmanagement theory before going to the topic of strategic supply chain management. Secondly,the article describes current status and problems of the supply chain in detailed, coveringprocurement, inbound and outbound logistics and related sales and after-sales activities, askey parts of creation activities in value chain. There is a highlight of key supply chainmanagement problems, included impact of whiplash effect being suffered, high cost and slowresponse to customers. In general, the current supply chain management style neithercomplying with automobile industrial trend, nor meeting local customers’ expectation, asksfor an imperative strategic management. To develop an integration strategy for supply chain,an external environment analysis has been conducted by analyzing general externalenvironment, analyzing industry competition environment by means of Michael Porter’s fiveforces competition analysis and competitors. The conclusion shows that there is a gapbetween current supply chain management style and industrial trend, which yearns forstrategic management. Through SWOT analysis, come up a feedback that from total valuestream management respective, DP (Guangzhou) Company. Ltd has good resource, capacitiesand core competent in internal management, while, supplier chain is a bottleneck forimprovement in term of competition competence. Therefore, it will make sense to takeopportunity of Wuhan new business as a starting point to integrate resource of human being,resource of supplier, process and resources of production control and logistics to improvematerial cost and logistic cost, enhance information management system and performanceevaluation system, supply with agility and integrate culture for local business success. The case study provides an example for further local business development, as well as avaluable reference for global company’s supply chain strategic management, cost control andimprovement.