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4 - Huawei’s Transformation of Supply Chain Management
- By Ying Li, Can Huang, Yongyi Shou
Xiaobo Wu, Zhejiang University, China, Johann Peter Murmann, Universität St Gallen, Switzerland, Can Huang, Zhejiang University, China, Bin Guo, Zhejiang University, China
Book:

The Management Transformation of Huawei

Published online:

21 March 2020

Print publication:

09 April 2020, pp 136-170
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Summary

This chapter documents how Huawei transformed its supply chain management over the past two decades. We argue that Huawei’s supply chain management transformation can be divided into two stages: the establishment of an integrative supply chain from 1999 to 2003 and the establishment of a global supply chain from 2005 to the present. In the integrative supply chain management transformation project, IBM consultants helped Huawei identify problems in its operational processes, IT system and organizational structure. Subsequently, Huawei addressed these problems through process reengineering, an integrated IT system, and organizational change management, respectively. In the global supply chain management transformation phase, Huawei first promoted the enterprise resource planning (ERP) system in overseas subsidiaries and representative offices by tailoring the system to local laws, regulations and customer requirements and then made efforts to build an integrated global supply chain network.