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Supply Chain Management Case Study: Groupe SEB

706 Words3 Pages

Groupe SEB is a multinational corporate (MNC) and a leader of Small Domestic Appliances (SDA) and Cookware market. In 2015, its sales volume is around €4,770 million. It has buying offices located in different countries, in Asia, Hong Kong branch is the one who responses for component sourcing in China and Southeast Asia from over 200 materials, spare parts and component suppliers to support the oversea factories to complete the product to fulfill the global market demand. To have better understanding about the supplier strategies and how the strategies affect the key supplier relationship to achieve the win-win situation, I selected Groupe SEB as a investigate target because I have worked in its Hong Kong buying office before. As a control …show more content…

However, the total cost in China is increasing and it causes some of the 2nd Tiers supplier decided to move their production line to Southeast Asia, such as Vietnam, Thailand, India and Cambodia. The advantage for production line moving is cost reduction, in return, some of the area need to improve again as the worker and operation in these countries are not mature. To narrow down and discuss the topic, we will focus on the supplier communication and relationship and related development strategies between a buying firm and the 2nd Tier suppliers in developing …show more content…

To achieve the total cost reduction, Groupe SEB selects the 1st Tier suppliers to provide the semi-products, and source the materials and spare parts suppliers to support the 1st Tier suppliers. Groupe SEB has sent the different functional teams to work with 2nd Tier supplier and develop them to ensure their total quality meet the company and difference market requirements. It achieves economic scales and has more bargaining power with 2nd Tier suppliers. In China, Groupe SEB has only few well developed 2nd suppliers’ response to supply the silicon parts and materials to all the 1st Tier suppliers. At the cost, these 2nd Tier suppliers are hard to replace because Groupe SEB rely on their supply to support the market demand and it has less chance to change in future (Ivens, Van de Vijver and Vos,

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