Chinese Foreign Trade Enterprises Of Supply Chain Management Problems And Countermeasures

From 1980's on Supply Chain and Supply Chain Management has been a hot topic. Though the existence was not long it has became one of the most popular management models. A lot of famous company benefited from it and also developed it such as: HP, IBM, and Dell. Above all made people believed it is an effective way to adapt the company to the global competition.The SCM of foreign trading company is according to the two platforms to make good use of information-flow, logistics and cash flow and achieve the cost reducing, Value-adding and enhance the compete. China is abounding with large quantity of labor force, the domestic cost of manufacturing is very low, and it is one of the advantages in the international market. However with the competition became intense, the original advantages became weaker. At present as to Chinese foreign trading company SCM is the one way to achieve value adding.Nowadays many domestic foreign trading companies began to look the SCM as a very important factor, but there are lots of misunderstanding in the operation, such as did not establish strategic alliance, information-flow is not smooth, high logistics cost, inefficient management on cash and working capital all above lead company fail in SCM.In this article the author introduce some improvements on the success of Li&Fung's operations. Aim at the problems of implements of SCM the Chinese foreign trading companies should establish a set of operating model which is suitable to the Chinese circumstance, enhance the operation management and financial management of SCM.