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Cost innovation in global supply chains: the case of Huawei Technologies
University of Gävle, Faculty of Engineering and Sustainable Development, Department of Industrial Development, IT and Land Management, Industrial economics. University of Gävle, Center for Logistics and Innovative Production. University of Gävle, Faculty of Engineering and Sustainable Development, Department of Industrial Development, IT and Land Management, Industrial economics. (Industriell ekonomi)ORCID iD: 0000-0001-8238-034X
University of Gävle, Faculty of Engineering and Sustainable Development, Department of Industrial Development, IT and Land Management, Industrial economics. University of Gävle, Center for Logistics and Innovative Production. University of Gävle, Faculty of Engineering and Sustainable Development, Department of Industrial Development, IT and Land Management, Industrial economics. (Industriell ekonomi)
2016 (English)In: International Journal of Logistics Systems and Management, ISSN 1742-7967, E-ISSN 1742-7975, Vol. 23, no 2, p. 189-208Article in journal (Refereed) Published
Abstract [en]

Cost innovation has been used to describe how firms offer a variety of customised and high-tech products at low prices. Insights into how this trade-off is overcome by supply chain design are lacking. This paper analyses the global supply chain strategies and practices of Huawei Technologies, and specifically how these contribute to cost innovation capability. The paper is based on interviews with managers at Huawei headquarters in Shenzhen, plus managers at two European supply chain centres. The case study shows that even though Huawei does not possess specifically unique supply chain solutions, there are some features that drive Huawei towards cost innovation in its supply chains. Some of them concern low-cost operations based on the location of main R&D, manufacturing and suppliers to China, in combination with a strong customer orientation, an integrated supply chain organisation and a balanced outsourcing strategy.

Place, publisher, year, edition, pages
2016. Vol. 23, no 2, p. 189-208
Keyword [en]
Cost innovation, Global, Huawei, Integrated supply chain, ISC, Low cost, Outsourcing, SCM, Supply chain design, Supply chain management, Telecom industry, Trade-off
National Category
Other Engineering and Technologies
Identifiers
URN: urn:nbn:se:hig:diva-17737DOI: 10.1504/IJLSM.2016.073969Scopus ID: 2-s2.0-84953389157OAI: oai:DiVA.org:hig-17737DiVA: diva2:758488
Available from: 2014-10-27 Created: 2014-10-27 Last updated: 2018-01-25Bibliographically approved

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CiteExportLink to record
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Citation style
  • apa
  • harvard-cite-them-right
  • ieee
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  • Other style
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Language
  • sv-SE
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  • de-DE
  • Other locale
More languages
Output format
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