Analysis of Huawei's Supply Chain Management Challenges and Strategies

This report provides an analysis of Huawei's supply chain management, focusing on the risks faced by the company, such as interstate relations and technological challenges. It examines the preventive measures taken by Huawei, including investments in refining manufacturing capabilities an...Read More

Running head: SUPPLY CHAIN MANAGEMENT 0
Supply Chain Management
2019

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Answer 1.
The main supply chain risk suffered by the manufacturing companies like Huawei is interstate
relation, collapse of government, failures to adapt new technologies, customer service defects in
the production of the Huawei products such as smartphones. These risks can adversely affect the
supply chain of the company in many way1. For example: US government banned China Huawei
declared by Trump Administration.
Answer 2.
Huawei decided to take preventive measures against the challenges that can affect the supply
chain of the company. They forecasted that:
 The board of the company decided to invest $2bn for refining the abilities and the
capabilities of the company to manufacture good products2. Huawei developed a High-
level plan for preventing themselves from risks.
 Huawei declared that they would endure to work with National Cyber Security Centre
and the UK operators for meeting their needs and requirements.
Answer 3.
Supply chain of Huawei, when affected caused some of the interruptions in the organization.
When it get affected by the crisis that happened with the company, it decreased the share price of
the company. Supply chain of Huawei also raises the cost of insurance because of which their

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business was not working in the global market after the problems and interruptions it faced for
example: fire chips in china Huawei banned by US government3.
When an interruption by disruption generated, the organizations required a mitigation plans
instead of precluding the loss of the market share to get less affected from the competitors and be
prepared for the coming interruptions.
Answer 4.
Huawei has taken major overcoming measures to reduce the impact of its recent events. With its
major foot forward, Huawei has reduced its impact by initiating in globalization and building
relationships by collaborating with different industries, government and customers4. It has a
huge impact on targeted market and maintained its positioning focus and stakeholders
commitments. Huawei has a leading brand ensured its market lead and apart from its recent
events impact it completed with various dynamic environment forces. Huawei offers great
features and product commitments, which it definitely cherished in its depraved times.
In the era, where change is necessity with random disruptions is laying innovative guidelines for
many industries like Huawei5. In those times where resources were held as a game changer has
taken place with the creative talent as a key-factor.
Answer 5.
The decision and forecast declared by Huawei will work for a long time as the company already
seen the growth in the month of April. The beginning of the ban troupe a sleuth, but other

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organizations left the business with Huawei. The forecast focused more on the technologies and
the needs and demands of the consumers.
Huawei does not felt that there is going to be any huge disadvantage as it would relate to the
technology6. The CEO of the Huawei already declared the forecast about the improvement and
betterment of the technologies, before the interruptions occurred in the organization.
Answer 6.
Manager of the company sometimes fails to control the interruptions that occur in an
organization. The large companies like Huawei can diminish the threat by re-designing the
supply chain instead of allowing it to extent it within the supply chain. They can adopt advanced
technologies and can improve customer services to regain their status in the global market.
The managers and the CEO of the company can change their internal structure of the
organization and can follow some strategies to reduce further disruptions in the company. They
should have control on the amount of complexity, which can further lead to increase the cost
efficiency and decrease the risk. These are some long term strategies or methods which are
required by the large companies like Huawei to reduce the occurrence of the interruptions and
generate profit to reduce the risk7.

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Answer 7.
From the supply chain perspective, the reader an adopt some new strategies and techniques from
the Huawei case. This made us learn about the importance of precautionary measures to be kept
in mind at the time of forecasting, planning and controlling in order to decrease the last time
pressure. Enterprise resource planning should be dynamic and utilized effectively. Word of
mouth and a belief in brand has created a plus point for Huawei to at least secure consumer
endeavor as a last resort8.
Furthermore, it explained how easily manipulate with the help of goodwill and run its two major
forces to be considered as a important part of supply chain which are demand and supply. At last
it explains how forecasting and planning could lead to the betterment of the consequences in the
coming future, be it life or from a corporate perspective.

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Bibliography
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[1] Wojciech Piotrowicz and Richard Cuthbertson, Supply Chain Design and Management for Emerging
Markets.: Springer, 2015.
[2] Voratas Kachitvichyanukul, Kanchana Sethanan, and Paulina Golinska- Dawson, Toward Sustainable
Operations of Supply Chain and Logistics Systems.: Springer, 2015.
[3] Andrew R. Thomas and Sebastian Vaduva, Global Supply Chain Security.: Springer, 2014.
[4] Yutao Sun and Seamus Grimes, China and Global Value Chains: Globalization and the Information
and Communications Technology Sector.: Routledge, 2017.
[5] Weiwei Huang, Built on Value: The Huawei Philosophy of Finance Management.: Springer, 2019.
[6] World Intellectual Property Organization, Intangible Capital in Global Value Chains.: WIPO, 2018.
[7] Robert Grosse, Emerging Markets: Strategies for Competing in the Global Value Chain.: Kogan Page
Publishers, 2015.
[8] Tian Tao, David De Cremer, and Wu Chunbo, Huawei: Leadership, Culture, and Connectivity.: SAGE
Publications India, 2016.
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