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Improvement of Material Flow in the Production and Supply Chain of ...

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ecause this only gets from experience <strong>and</strong> under normal situation.<br />

In a whole, evaluat<strong>in</strong>g current suppliers by quality, delivery, cost as well as supplier<br />

capabilities, all <strong>of</strong> <strong>the</strong>m are able to satisfy requirements <strong>of</strong> Haldex <strong>in</strong> current situation.<br />

But <strong>the</strong> dense distribution <strong>of</strong> suppliers has a problem with risks. Risks here <strong>in</strong>cludes<br />

both natural factors <strong>and</strong> man-made factors, such as energy crisis, raw material<br />

shortage, natural disasters, strike, enhanced social welfare or salary <strong>and</strong> so on. Some<br />

<strong>of</strong> <strong>the</strong> risks could be avoid if suppliers distribute <strong>in</strong> a large scope. Fur<strong>the</strong>rmore, with<br />

<strong>the</strong> change <strong>of</strong> market, it will be a good idea to select some suppliers as well as <strong>in</strong>vest<br />

new workshop close to <strong>the</strong> market to save transportation cost <strong>and</strong> reduce risks.<br />

Certa<strong>in</strong>ly, <strong>in</strong> that situation, evaluations from many aspects are needed before<br />

<strong>in</strong>vestment.<br />

5.3 Selection <strong>of</strong> future suppliers<br />

5.3.1 Market distribution <strong>and</strong> suppliers’ selection<br />

Beside <strong>of</strong> <strong>the</strong> quality, cost <strong>and</strong> delivery, distribution <strong>of</strong> market is a pivotal factor to<br />

decide <strong>the</strong> area to f<strong>in</strong>d suppliers. From <strong>the</strong> order quantity dur<strong>in</strong>g <strong>the</strong> period <strong>of</strong><br />

November 2007 to January 2008, <strong>the</strong> ma<strong>in</strong> market <strong>of</strong> ADB locates <strong>in</strong> Europe. The<br />

distribution is shown <strong>in</strong> Figure 5.4. Most <strong>of</strong> <strong>the</strong> suppliers locate <strong>in</strong> Europe <strong>and</strong> two<br />

with smallest percentage locate <strong>in</strong> Asia. Compar<strong>in</strong>g to <strong>the</strong> current suppliers<br />

distribution, <strong>the</strong> two distributions generally match well with each o<strong>the</strong>r.<br />

Korea<br />

Ch<strong>in</strong>a<br />

Austria<br />

Spa<strong>in</strong><br />

Belgium<br />

Pol<strong>and</strong><br />

Holl<strong>and</strong><br />

Turkey<br />

Sweden<br />

Russia<br />

France<br />

Percentage <strong>of</strong> <strong>the</strong> whole market<br />

0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% 90.00%<br />

Figure 5.4 Current Market Distribution <strong>of</strong> ADB<br />

44

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