NOORI Electronic Supply Chain Optimization Management

1Innovative ideas

NOORI Electronic believes that to carry out supply chain innovation, we must first completely eliminate two long-standing assumptions: One assumption is that any company can do anything. The reality is that work should be done by the company or person who is in the best position to do it, not by those who directly benefit from it. Another assumption is that units outside the company are the company’s enemies, and other departments within the company are the enemies of the department. Tear down the walls between the company and its customers, and between the company and its suppliers, and seek to achieve the best performance within the supply chain.

2 Ways to innovate

(1) Reduce the number of suppliers. The past practice of enterprises was to select multiple suppliers for the same parts in order to put pressure on the suppliers and reduce the purchase price. The company’s gains come at the expense of its suppliers. Currently, this situation has begun to change. NOORI Electronic reduces the number of suppliers and expands the supplier’s supply, thereby allowing suppliers to gain economies of scale, and both enterprises and suppliers can benefit from low costs.

(2) Concession to retailers. Establish partnerships with selected retailers. By signing cooperation agreements, NOORI Electronic and retailers jointly carry out training and provide specific services.

(3) Comprehensively understand the customer’s operating system and needs. NOORI Electronic’s factory representative places an order with his company and formulates the required supply materials for the customer’s plan.

(4) Share detailed information with suppliers and customers. Reduce intermediate links and improve efficiency.

(5) Early participation of suppliers. In the new product development stage, supplier preparation time is shortened and resources and costs are saved.

(6) Maintain close collaborative relationships with customers and suppliers. Form teams that include customers and suppliers to jointly develop new products and share information to create competitive advantage. The innovative NOORI Electronic is trying to transform the original loose buyer-seller relationship into a close collaborative relationship, and even forms organizations with some suppliers and their customers to provide products and services that a single company cannot provide.

3 Innovation Directions

Technological progress has improved people’s ability to manage complex systems, prompting supply chain management to continuously move forward and achieve breakthrough progress.

(1) Rapid response flexible supply chain. Because the market is constantly changing, it is necessary to continuously improve the supply chain configuration. Therefore, NOORI Electronic designed a flexible supply chain for a series of possible changes to avoid chaos, excessive investment or large-scale personnel changes.

(2) In the NOORI Electronic supply chain, its elements can naturally adapt to changes in other elements, changes in external conditions and substitution of elements (such as changing a supplier).

4 Deepen cooperation

(1) Help key suppliers adopt new technologies and improve management.

(2) Within the framework of the agreement, a simplified ordering method is adopted.

(3) Share annual, quarterly, monthly or even shorter period forecast and ordering information with key suppliers.

(4) Hold monthly supplier meetings to share performance information and discuss methods and measures for further improvement.

Supply chain management innovation is a focus of NOORI Electronic’s corporate management. The NOORI Electronic supply chain is based on optimizing the allocation of the capabilities of all partners. Supply chain management must achieve innovative results. NOORI Electronic communicates with partners in multiple aspects and at multiple levels, jointly trains, develops and improves, establishes long-term cooperative relationships and improves performance. Achieve a balance between evaluation and benefit distribution.