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01 | 2015 msg systems study

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Sourcing in China

Results and Outcomes of

Results and Outcomes of the Survey – Suppliers and Quality Risk Management to Ensure Supply To ensure supply companies utilize the usual measures without dominant preference. However, choosing an alternative supplier from an emerging market appears to be less beneficial. From Figure 18 it can be clearly observed that most companies already use buffer stocks but also alternative suppliers from developed markets and / or China. This option has apparently been exploited to the extent of 75 percent already. The use of further alternative suppliers from other emerging markets is also already being exploited by 63 percent of survey participants although the degree of further unknown costs and risks that cannot be anticipated in advance is a little higher in those markets which makes companies slightly more cautious. Companies remain in China but additionally explore alternative markets. Supplier Awareness towards Sustainability The majority of measures in regard to sustainability have already been taken by companies (Figure 19). Only supplier awards and workshops are not too popular. All companies participating in the survey work with audits in order to measure sustainability. Spot checks, assessments and training also take place in the sustainability program of most companies with the aim to guide and support their suppliers in that topic. Supplier awards and workshops are still less implemented and will get more attention in the future. Already taken Planning to take / not to take at all Already taken Planning to take Buffer stocks / increase of inventory 78% 22% Spot Checks Assessment beyond certification 82% 86% 18% 14% Alternative 2nd source supplier from developed market country 75% 25% Audits 100% Alternative 2nd source supplier from an emerging market country 63% 37% Supplier Awards Workshop 42% 46% 58% 54% Alternative 2nd source supplier from China 75% 25% Training 78% 22% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90%100% 0% 20% 40% 60% 80% 100% 120% 18 | Measures to Ensure Supply 19 | Supplier Awareness Categorization 22

Results and Outcomes of the Survey – Suppliers and Quality Sourcing Challenges China’s top challenges confirm previous findings in regard to quality and cost control. Improved quality thereby has a direct impact on saving costs and hence companies mainly regard both challenges accumulated. The importance of sustainability has increased significantly in previous years (Figure 20). Other differences such as language and culture also play a role and count as difficult to manage. Quality related 23% Cost control 17% Others (Eg. Culture, Flexibility) Substainability Raw materials volatility Government policy 10% 10% 13% 17% Demand fluctuations 7% Delivery rate 3% 20 | Sourcing Challenges Categorization 0% 5% 10% 15% 20% 25% 23

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msg ist eine unabhängige, international agierende Unternehmensgruppe mit weltweit mehr als 6.000 Mitarbeitern. Sie bietet ein ganzheitliches Leistungsspektrum aus einfallsreicher strategischer Beratung und intelligenten, nachhaltig wertschöpfenden IT-Lösungen für die Branchen Automotive, Banking, Food, Insurance, Life Science & Healthcare, Public Sector, Telecommunications, Travel & Logistics sowie Utilities und hat in über 35 Jahren einen ausgezeichneten Ruf als Branchenspezialist erworben.

Die Bandbreite unterschiedlicher Branchen- und Themenschwerpunkte decken im Unternehmensverbund eigenständige Gesellschaften ab: Dabei bildet die msg systems ag den zentralen Kern der Unternehmensgruppe und arbeitet mit den Gesellschaften fachlich und organisatorisch eng zusammen. So werden die Kompetenzen, Erfahrungen und das Know-how aller Mitglieder zu einem ganzheitlichen Lösungsportfolio mit messbarem Mehrwert für die Kunden gebündelt. msg nimmt im Ranking der IT-Beratungs- und Systemintegrationsunternehmen in Deutschland Platz 7 ein.


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