China’s Role in Purchasing Chain.doc

China?s Role in Purchasing Chain In current world market, “Made-in-China” often meansgood price and competitive quality. In terms of China’strade pattern, more than half of Chinese exporting productsbelong to processing trade industry according to the demandsand requirements of international orders. On the purchasingchain, China is learning from its international partners. Safetyand quality always tops all issues. International giants control Raw materials provided to international enterprises,such as retail giants Wal-Mart and Carrefour, fast-food tycoons KFC, McDonald and PizzaHut, have all been localized.Each company has itssuppliers and a completesystematic supply-chainin Mainland China, whichis a great promise to thepublic and customers.Though each internationalgiant have sets of strictstandards and regulations,Chinese suppliers can meetthem all well. Let’s see what Chinese KFC behaves first. Its100% chicken material and 85% package material aredomestic provided under a global assessment system,”STARSYSTEM”. Another example is from Wal-Mart. A small town inChina veils Wal-Mart’s cloth supplier, but every processingcycle in this cloth factory is supervised and assessed underWal-Mart’s strict standard. Workers and stuff there evercomplained that “Making cloth for Wal-Mart is a toughtask. You have to work very carefully, because any flaw inthe product may make your work null”. The first McDonald was opened in 1990 in Shenzhen,but its suppliers entered China to establish its farmsand factories in 1983. Its vegetable planting, from seedselection, sowing, irrigation, to fertilization and animalbreeding and slaughter are detailed recorded andregulated according to its manual of supply chainmanagement. Every producing and processing step istrustable. Chinese supply companies should make sure thattheir products in accordance with the purchasingrequirements. A standard tomake options, assessmentto raw materials has tobe regulated and requirea good r