A Case Study Of The Impact Of RMB Appreciation On Rich’s Export Business From The Supply Chain Perspective

Starting from July2005, RMB began the journey of continuous appreciation. Unfortunately, RMB appreciation has brought great impact to China’s foreign trade enterprises. A large number of foreign trade enterprises face big challenges and batch after batch of foreign trade enterprises have declared bankruptcy, which hinders the development of China’s foreign trade industry and the national economy as well as the employment situation. Therefore, in this context, especially when many foreign trade enterprises introduced supply chain management in recent years, to study the impact of RMB appreciation on foreign trade enterprises’supply chain management links has important practical significance.In order to answer the impact of RMB appreciation on foreign trade enterprises’each supply chain links and find the corresponding countermeasures, in this dissertation, Rich International Trading Co., was used as the case study sample, and by applying case study method and supplemented by theoretical research and literature analysis method, the company’s export business processes, the impact of RMB appreciation on the company’s export business, and the corresponding measures were analyzed. The main conclusions are as follows:(1) After11-year development, Rich International Trading Co., Ltd. transformed from a middleman between customers and suppliers to a supply chain management-based foreign trade enterprises. The company’s export business process can be broken down into four links: accessing to customers, looking for suppliers, tracking orders and transportation.(2) The impact of RMB appreciation on Rich International Trading Co., Ltd.’s export business is multifaceted. The impact on the four links respectively are:①In the accessing to customer link, RMB appreciation increases Rich International Trading Co., Ltd.’s risk of losing customers and operating costs and decreases the company’s profit;②In the looking for supplier link, RMB appreciation increases Rich International Trading Co., Ltd.’s cost of supplier management, customer management and operating costs, and operational risks; and③In the tracking order link, RMB appreciation increases Rich International Trading Co., Ltd.’s operating costs.(3) In order to cope with the impact of RMB appreciation on the company’s export business, Rich International Trading Co., Ltd. should apply the following strategies according to the above impact:①In the accessing to customer link, the company should create a virtual supply chain, early warning systems and contract legal norms template and get foreign exchange services;②In the looking for supplier link, the company should create a virtual supply chain, enhance their own strength, expand the range of customers, and apply fixed asset guarantee; and③In the tracking order link, the company should create a virtual supply chain.