Critical Analysis of Huawei's Supply Chain Operations and Strategies

This report provides a critical analysis of Huawei's supply chain management within the context of the competitive smartphone industry. It begins with an executive summary highlighting the importance of strategic business units, particularly within Huawei's structure, and identifies key strategic issues such as technology, stakeholder management, and supply networks that affect the sustainability of the supply chain. The report then delves into a detailed analysis of Huawei's operations, examining these strategic issues and their impact on the company. It explores the significance of technology in facilitating business processes, the influence of stakeholders (customers, suppliers, shareholders), and the importance of supply networks for timely product flow. The analysis includes recommendations for improving Huawei's current operations, focusing on manufacturing processes, supplier relationships, logistics, customer relationship management, and demand management. The report emphasizes the need for strategic decisions at various levels to address the identified challenges and enhance supply chain efficiency, productivity, and profitability, ultimately contributing to the company's long-term growth and sustainability.

Supply Chain
Project

EXECUTIVE SUMMARY
Smartphone and cellphone industry is very vast sector. Companies dealing in this sector
have to face huge competition and develop effective strategies in order to gain competitive
advantage over other rival companies. Business environment of this industry is rapidly changing
and these can have positive and negative effect on organisation. Strategic business units are very
helpful in accomplishing desired goals and aims of organisation. Huawei has four strategic
business units and these play a major role in gaining profits for organisation. In this report
various strategic issues such as technology, supply chain, stakeholder etc. has been identified
which affect sustainability of supply chain networks of this organisation. Different strategic
issues are technology, stakeholder, supply networks. After identifying these issues organisation's
current operations are proper analysed in order to deal with these challenges by effectively
managing manufacturing process, customers and using advance technology.

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Critical analysis of Huawei's operations................................................................................1
CONCLUSION................................................................................................................................5
REFERANCES................................................................................................................................6

INTRODUCTION
Supply chain management is a very essential part of organisation as it leads to proper
flow of goods and services (Ayers and Odegaard, 2017). It includes different activities such as
planning, controlling, executing product's flow, acquiring raw materials as well as distributing
final goods to end customers. Smartphone or cell phone industry is one of the largest and fast
growing industry. This sector is attracting and influencing large number of customers to purchase
cell phones or smartphone by providing new and innovative features in it
(GowthamiandKumar2016). Companies dealing in smartphone industry have to deal with high
competition and develop effective strategies in order to achieve desired goals and objectives.
Smartphone strategic business units refers to an independent entity and these units directly report
to headquarters of organisation. SBU are also known as fully functional units which as their own
vision as well as direction (Behera, Mohanty and Prakash, 2015). Chosen company for this
report is Huawei technology which is a Chinese multinational organisation. This organisation
was established in 1987 and founder is Ren Zhengfei (Huawei, 2019). Huawei Technologies
company is dealing in a mobile phone, consumer electronics, telecom equipment and networking
equipment. It's headquarter is located in Shenzhen, Guangdong, China and it is providing its
products and services all around the world. Huawei has four strategic business units. This report
includes critical analysis of chosen company's operations. It consists of different strategic issues
affecting sustainability of supply chain network of organisation.
MAIN BODY
Critical analysis of Huawei's operations.
In order to critically analyse the operations of Huawei it is very important to identify
strategic issues of organisation. This company is facing various strategies issues which needs to
be identified and evaluated so that company can achieve its desired goals and objectives (Dalton,
2014). Huawei company needs to identify several strategic issues which are affecting
sustainability of supply chain network within organisation (Christopher, 2016). Huawei company
is facing different issues in maintaining sustainability in it supply chain management.
Sustainability supply chain can be refer to integration of environment and financially viable
practices which helps in successful completing supply chain. This provides a holistic perspective
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to supply chain processes and innovative technologies that addresses environmental, social and
economic aspects of supply chain.
Strategic issues affecting the sustainability of the supply chain network of Huawei.
Different strategic issues affecting the sustainability of supply chain network of Huawei
are technology, stakeholder, supply network. All these issues are mention below:
Technology: Technology is a one of the most important aspect of an organisation. This
factor plays a major role in effective and efficient functioning of business as well as its process.
With the use of high and advance technology Huawei company can easily facilitates its business
supply chain process. Supply chain management is essential in increasing productivity and
profitability of organisation (Čuš-Babič and et.al.,2014). Technology factor is very helpful in
dealing with comparative environment by maintaining high quality supply chain management.
For Huawei company technology is a major issue in developing effective strategies as well as
supply chain management. Due to ineffective technological planning and execution organisation
is not able to achieve its desired goals and targets (Li-Hua and Lu, 2013). Lack of technology
management is the major issue in Huawei company. This organisation has high technology but it
is not able to properly use it. Company is not able to train its employees so that they can
effectively use this technology and develop its supply chain system in order to achieve its desired
goals. Poor management of technology leads to lack of system monitoring and not able to detect
problems and deficiencies in supply chain before it actually occurs (Yan, Wang and Xiong,
2017). Technological strategic issue will also lead to lack of proactive maintenance plan. This
will affect latest security and software system on Huawei organisation.
Stakeholder: It refers to an any person or a group of people who have impact on business
as well as its process. Key stakeholder are customers, suppliers, shareholder and public.
Customers are those who purchase products of company (Dekker and et.al.,2013). Suppliers are
those who provide raw material or inputs to organisation so that it can develop final and finished
products. Shareholders are those who have purchases share of company and they have right to
take decision related to organisation. All of these have major impact on organisation as well as
its productivity and profitability. Stakeholder have huge influence in achieving corporate goals
and maintaining or managing supply chain of Huawei company. This organisation is not able to
develop proper plan and strategies in order to make effective supply management system (Xu
and Li, 2016). Shareholder's strategic issue will lead to affect overall business process as well as
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its productivity. Different issues are faced by Huawei company because of stakeholder strategic
issues. This will affect timely movement of products and other material from one place to
another. Supplier which are not supply raw material on time and this will affect development of
finish good on time. This can be considering as a major reason of failure of supply chain
management of this organisation (Chen, 2013).
Supply networks: Supply networks are the major part in management of supply chain.
Supply network and supply chain both are consider as a flow and movement of materials and
products to end customers (Ghadge and et.al.,2013). It can be describing as a networks design
which includes physical arrangement, design structural as well as infrastructure of supply chain.
Company needs to develop an effective network in different areas, location, manufacturing
plants warehouses outlets etc. This will be very helpful in maintaining effectively and efficient
supply chain management. Supply networks are responsible for timely and fast flow of products
and other materials of organisation. Supply networks of Huawei company can be considering as
a strategic issue for this organisation. Due to lack of proper supply network this company have to
face improper supply chain management. Networks play a major role in bringing new
opportunities in organisation. Because of ineffective networks, company is not able to supply its
products and services in global level market area. This directly affect profitability of Huawei
company as well as its market area. Smartphone industry is a very big sector and due to supply
network strategic issue this company is not able to handle high competition and gain competitive
advantage over it.
Organisation's current operations in relation to challenges identified.
Huawei organisation needs to develop effective and efficient supply chain management
in order to increase its profits and market share. There are many issues identified above in supply
chain system of this organisation. These challenges needs to be identified carefully and
understand so that company can be deal with these issues (Mello, Strandhagen and Alfnes,
2015). By handling these challenges company can effectively perform better as well as
accomplish its aim and objectives. There are some operational processes of supply chain that will
bring positive impact on supply chain management. At strategic level Huawei company can
develop high level strategic supply chain decisions. For example, developing new logistic
process, identifying potential customers, new and updated technology in manufacturing process.
This company needs to establish various strategic supply chain processes in its current business
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operations so that above challenges can be resolved easily. This includes manufacturing,
suppliers, logistics, customers, demand management.
Manufacturing: This includes the production process as well as technology used in
manufacturing of products. Huawei company needs to use effective and efficient manufacturing
process with high technology so that company can develop good quality products. Effective
manufacturing process can be consider as a crucial part of sustainability supply chain as it will
lead to long term growth of Huawei's business. Company have to take strategic decision
regarding product manufacturing. High level manufacturing infrastructure and technology will
be very helpful in dealing with supply chain management issues. This company should use
Computer Aided manufacturing and Computer Aided Design. This advance technology in
manufacturing process will increase production of Huawei organisation and selling of products
to end customers. This aspect will help in improving productivity and profitability of
organisation as well as support social and environment sustainability.
Suppliers: Management of Huawei organisation needs to consider suppliers while
developing supply management strategies. Supplier play an essential role in overall business
process and productivity of this organisation (Monczka and et.al.,2015). Huawei can develop its
strategic supply chain policies in regards to suppliers. By developing and implementing effective
strategies related to supplier company can increase its current profits. Suppliers can provide
discounts to company which will leads enhance profitability. By reducing the cost spend on
purchasing of raw materials and other goods from suppliers. Company should connect with
professional suppliers who will provide raw material on time so that organisation can finish its
business operations on time. With the decrease in cost of purchasing it will directly increase the
profits of company. Suppliers will have impact on economical sustainability of organisation.
Logistics: Logistics can be referring as management of flow of good from one place to
other. This process is very helpful in transferring goods or products from their point of origin to
the point of consumption. Huawei company can full fill needs and requirement of its customers
by developing effective logistic system (Skilton, 2014). This function can be considering as a
key to success of supply chain of organisation. Company needs to develop and design better
supply networks so that supply chain system can effective function and deliver its products to
end customers. In order to develop a better and effective work company needs to develop a
proper plan and accurately manage all resources and material of business. Logistic networks and
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operations will have significant influence on performance of supply chain management of this
organisation. By improving logistic system of company, it will contribute to the social
sustainability.
Customer: Huawei company needs to build strong relationship with its customers so that
they can gain trust from their customers. At this strategic level, it is very important to identify
potential customers for the products and services offered by company. By identifying potential
customers, company will be able to target right set of segments. This will lead to increase sales
of Huawei company. This organisation needs to develop effective strategies and take various
decision in order to attract customers towards their products. Customer relationship management
is the first and the most important function of organisation as it helps in accomplish desired goals
of business. Huawei company should use an effective CRM tool to gather information related to
customers. CRM will be very helpful tool in increasing relationship with customer and this will
lead to increase sales and revenues of organisation (Chinje, 2013). This will help company in
determining its supply chain management strategies for future. Identification of potential
customers will contribute to social sustainability.
Demand management: Demand management is closely related to supply chain
management of organisation. Huawei company needs to identify demand of its products in
market area before developing supply chain management strategies (Swink and et.al., 2017).
Demand management is an effective function which will helps company in forecasting how
much products needs to be supply in different market area. By managing demand of customers,
this organisation will be able to get sustainable growth in its supply chain process. Demand
management will support and guide supply chain management system of organisation and this
will help in proper functioning of supply chain management system. Demand management will
contribute to the economic sustainability and company should focus on full filling the demand of
customers.
CONCLUSION
From above report it is concluded that supply chain management is a design which plays
significant role to assess policies and programs of an organisation and meet targets to attain long
term goals by network design project. Company needs to focuses on strategic business units and
sustainability of its supply chain. Sustainability of supply chain management involves
performance of environment and financial activities to complete whole supply chain which also
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includes design of product, manufacturing, packaging, transportation etc. But there are some
strategic issues such as technologies, customers, suppliers or its sustainable performance which
can affect sustainability of supply chain in respective organisation.
REFERANCES
Books and Journal
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Ayers, J. B. & Odegaard, M. A. (2017). Retail supply chain management. CRC Press.
Behera, P., Mohanty, R. P., & Prakash, A. (2015). Understanding construction supply chain
management. Production Planning & Control. 26(16). 1332-1350.
Christopher, M. (2016). Logistics & supply chain management. Pearson UK.
Čuš-Babič, N. & et.al., (2014). Supply-chain transparency within industrialized construction
projects. Computers in Industry. 65(2). 345-353.
Dekker, R. & et.al., (2013). Reverse logistics: quantitative models for closed-loop supply chains.
Springer Science & Business Media.
Ghadge, A. & et.al., (2013). A systems approach for modelling supply chain risks. Supply chain
management: an international journal. 18(5). 523-538.
Mello, M. H., Strandhagen, J. O., & Alfnes, E. (2015). The role of coordination in avoiding
project delays in an engineer-to-order supply chain. Journal of Manufacturing
Technology Management. 26(3). 429-454.
Monczka, R. M. & et.al., (2015). Purchasing and supply chain management. Cengage Learning.
Skilton, P. F. (2014). Value creation, value capture, and supply chain structure: Understanding
resource–based advantage in a project–based industry. Journal of Supply Chain
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Swink, M. & et.al., (2017). Managing operations across the supply chain. New York, NY:
McGraw-Hill Education.
Waters, D., & Rinsler, S. (2014). Global logistics: New directions in supply chain management.
Kogan Page Publishers.
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(IJSEAS). 2(3). pp.473-478.
Dalton, M., 2014. Telecom deal by China’s ZTE, Huawei in Ethiopia faces criticism. Wall Street
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Li-Hua, R. and Lu, L., 2013. Technology strategy and sustainability of business: Empirical
experiences from Chinese cases. Journal of Technology Management in China. 8(2).
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Yan, J., Wang, L. and Xiong, J., 2017. Alcatel-Lucent falls, Huawei ascends: New product
development makes the difference. Journal of Business Strategy. 38(1). pp.22-30.
Xu, H. and Li, W., 2016. Analysis on Impact of Marketing Dynamic Capabilities' Against the
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Chen, C., 2013. The links between governance principles and corporate social responsibility:
Based on case study of comparison of Ericsson and Huawei.
Chinje, N.B., 2013. Customer Relationship Management (CRM) Implementation within the
Banking and Mobile Telephony Sectors of Nigeria and South Africa (Doctoral
dissertation, University of the Witwatersrand, Faculty of Commerce, Law and
Management, Graduate School of Business Administration).
Online
Huawei. 2019. [Online]. Available through:<https://www.huawei.com/en/>.
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