The Case Study Of Global Sourcing Based On Supply Management In The Example Of Finisar Corporation

The companies of optical devices are in the middle reaches of optical communication industry.They supply optical devices(optical modules)to Cisco,Huawei,etc for their tele-communication equipment or to Google,Baidu for their networks.The optical devices are the core of optical communication products.The ability of manufacturing the optical devices represents the level and ability of a country in the field of optical communication technology.It is also the high-tech technology pursued by enterprises for prospective,leading and exploration.In recent years,The appearance of all kinds of network platform,online service,handheld of mobile devices,the data center,and also the rise of cloud computing and the internet of things bring the big chances to the optical communication industry.Along with the start of global investment cycle,the continuous drive of bandwidth demand,the popularity of global optical access,China's integration of three networks,and the climax of optical network construction across the world will drive the global market of optical devices towards steady growth.Meanwhile,the competitions of the optical-device companies become more and more fierce.The major companies strengthen their own market positions,make the global layout,improve their own product catalog by acquisition and investment,so that they could provide the better and complete solutions to customers.The product competition is mostly the competition of supply chain.So the global supply chain competition is the priority among the priorities.Finisar Cooperation is the world's largest supplier of the optical devices and has the most advanced technology in the industry.This paper took Finisar as the research object,analyzed the problems of the global procurement process,supplier management,inventory management,and logistics management,and gave the solutions according to supply chain theory,raised the global sourcing strategy servicing the company strategy,which would enhance the supply chain efficiency.This paper follows the rule of putting forward problems,analyzing problems and solving problems.Aim at those problems,analyze by supply chain theory,and also use fishbone diagram,ABC inventory classification,VMI,5Rs to give the solutions.Through the research on the problems of Finisar in supply chain,we found out to solve those problems we need to bring about the transformation of global sourcing strategy.That is to change from buy for stock to buy for order which would reduce the stock and speed up the inventory-turn-over rate,to change from the material management to the supplier management which would forge the strategic alliance with some important suppliers and do the supply chain management,to enhance the level of purchasing management from general consideration to the strategy consideration which would improve the company's agility and competitive,to optimize the enterprise source and implement the process reengineering.All of above would enhance the company's competitiveness.