As part of an ongoing supply chain evolution intended to reduce cost and maximize quality, Nortel (NT) has launched a supply chain center in Shanghai.
The Shanghai Supply Chain Center is the first in a series Nortel plans to deploy around the world and a major step in Nortel's strategy to create the industry's leading supply chain. Similar launches are being planned in India, North America, Eastern Europe and Mexico throughout 2005.
Nortel's Supply Chain Centers work closely with a wide range of global and regional suppliers by providing the best expertise available to ensure that all materials and processes meet Nortel's stringent quality standards and maximize cost effectiveness for manufacturing, network solutions and services. The Shanghai Supply Chain Center will be focused on managing these objectives with Nortel's fast-growing base of suppliers in Asia.
"This is another important step forward in Nortel's continued focus on optimizing global supply chain resources and investments to strengthen its competitive advantage while enhancing value for customers around the world," said Sue Spradley, president, Global Operations, Nortel. "With establishment of the Shanghai Supply Chain Center, we are applying 'best-in-class' manufacturing capabilities in the region with close supplier collaboration to ignite and power global commerce."
The Shanghai Supply Chain Center is also expected to provide strong support for Nortel's growing research and development presence in China, which is intended to enhance value for customers in the region as well as those in other parts of the world.
"The Asian and Greater China Regions have emerged as a major supply base with 'best-in-class' manufacturing technologies," said Robert Mao, president and chief executive officer, Greater China, Nortel. "Launch of the Shanghai Supply Chain Center not only enables us to work more efficiently with our suppliers in the region and identify new sources of supply, but also to create closer synergy with our R&D initiatives in China and to elevate our customer responsiveness to a new level."
Over the past six years, Nortel has divested most of its manufacturing activities to electronic manufacturing services suppliers. This strategy has positioned Nortel to concentrate on its core competencies and address changing market needs with cost-effective solutions of premium quality.
The Shanghai Supply Chain Center is an expansion of the existing wholly-owned Nortel Networks Telecommunications Equipment (Shanghai) Company Limited.
Nortel has established a significant presence in China, including three manufacturing and service joint ventures and two world-class research and development centers in Beijing and Guangzhou in addition to the Shanghai operation.