INFORMATION FLOW OPTIMIZATION OF PURCHASING FROM CHINA : Case: Suomen Glasluckan Oy
Guan, Qiubo (2013)
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Due to the rapid development of globalization and modern logistics, a sig-nificant growth of Finnish SMEs has been established sourcing partnership with Chinese suppliers in recent years. However, on account of the differences of language, standards, rules, cultural concepts as well as fre-quent changes, most SMEs that sourcing from China has experiences complexities and problems especially in the information flow phase. Since information flow is the basement of communication and interaction; in-formation flow also influences material flow and money flow in return. Suomen Glasluckan oy is a typical Finnish SME company that purchasing raw materials from China. According to this company, even though it has been established good partnership with trustable Chinese suppliers, the complexities and problems still occur in the information flow quite often. To optimize a clear information flow is strongly desired by both purchasers and suppliers and an optimized information flow can helps both buyers and suppliers linkage their communication, strengthen their partnership, increase the efficiency, reduce the cost as well as improve the quality con-trolling. This thesis starts with analyzing the information flow of Suomen Glasluckan oy in the whole purchasing process and followed by two inter-views, one is with Suomen Glasluckan oy sourcing personnel; another is with exporting personnel from one of Suomen Glasluckan oy’s Chinese suppliers. By interviewing two people, the reasons and expectations from both purchaser and suppliers’ point of view will be compared and analysed. Lastly, the recommendations to improve the information flow complexities and problems will be found out based on former interviews and analysis. In addition, a third interview with a China specialist will help to sort out more practical suggestions and recommendations tend to complexities. The objective of this thesis is to improve the information flow complexities for Suomen Glasluckan oy’s sourcing case and give an example to all other Finnish SMEs that also sourcing from China.