The case of Foxconn in Turkey: benefiting from free labour and anti-union policy

Starting from the 2000s Foxconn invested in Czechia, Slovakia, Hungary, Russia and Turkey, implementing a territorial diversification strategy aimed at getting nearer to its end markets. This chapter investigates the development of Foxconn in Turkey where the multinational owns a plant with about 400 workers. A few kilometres from the city of \uc7orlu and close to highways, ports and international airports, the plant enables Foxconn to implement an efficient global supply chain. We illustrate this process by examining the company\u2019s localisation within a special economic zone, underlining the economic advantages derived from such a tax regime, bringing labour costs down to the Chinese level and obtaining proximity to European, North African and Middle East customers, thus lowering logistic costs. We also analyse the roles of labour flexibility and trade unions. In order to impose far-reaching flexibility on its workers Foxconn put in place a range of strategies, including an hours bank system, multitask operators and the recruitment of apprentices thanks a special programme funded by the state. We show how these have been crucial for Foxconn\u2019s just-in-time production contrasting its labour turnover problem. Finally, we highlight how the company has been able to implement a flexible working pattern, weaken the trade unions and undercut workers\u2019 opposition, thanks to favourable labour laws approved by successive governments in the past thirty years

Introduction

This book investigates restructuring in the electronics industry and in particular the impact of a \u2018Chinese\u2019 labour regime on work and employ - ment practices in electronics assembly in Europe.1 Electronics is an extremely dynamic sector, characterized by an ever-changing organi - zational structure, as well as cut-throat competition, particularly in manufacturing. Located primarily in East Asia, electronics assembly has become notorious for poor working conditions, low unionisation and authoritarian labour relations. However, hostile labour relations and topdown HR policies are not unique to East Asia. They have become associated with the way the sector is governed more broadly, with a number of Western companies also coming to rely on such practices

Flexible workforces and low profit margins: electronics assembly between Europe and China

This book investigates restructuring in the electronics industry and in particular the impact of a \u2018Chinese\u2019 labour regime on work and employ - ment practices in electronics assembly in Europe.1 Electronics is an extremely dynamic sector, characterized by an ever-changing organi - zational structure, as well as cut-throat competition, particularly in manufacturing. Located primarily in East Asia, electronics assembly has become notorious for poor working conditions, low unionisation and authoritarian labour relations. However, hostile labour relations and topdown HR policies are not unique to East Asia. They have become associated with the way the sector is governed more broadly, with a number of Western companies also coming to rely on such practices

The utilization of key performance indicator appraisal for logistics outsourcing : a case of Defy appliances.

Master of Commerce in Management. University of KwaZulu-Natal, Durban, 2017.Background: Companies and customers around the world are embracing the trend of outsourcing their logistics requirements to outside logistics service providers. That being said, KPI appraisal can be regarded as an effective and reliable technique as to how a manufacturing company can measure the performance of its 3PL providers. Purpose: This research determined what factors motivate companies in their decisions to outsource their logistics needs to external logistics service providers as well as understand the logistics outsourcing process used to select 3PL providers. Moreover, the purpose of this research understood how performance measurement adds value to Defy’s operations and how KPI appraisal improves Defy’s relationships with its 3PL providers. This research also discovered a distinct list of KPIs that can be used by Defy in its efforts to measure the performance of its transporters. Lastly, the aim of this research is to examine the risks of logistics outsourcing and the remedial strategies that can be utilized to combat these risks. Methodology: This research is descriptive in nature and a case study approach was adopted. The empirical study included in-depth interviews with the executive and senior management of Defy whereby the use of open-ended questions were adopted to provide insight into the various facets of logistics outsourcing at Defy Appliances. A non-probability, purposive sampling method was used to select the participating company and its participants. Findings: The findings of this research indicated that there are eleven motivating factors that drive logistics outsourcing. Defy can also utilize a logistics outsourcing process that comprises seven steps. Additionally, this research determined that there are ten KPIs that Defy’s senior management can use to gauge the performance of its 3PL providers. Lastly, there are thirteen dangers that Defy can encounter in its efforts to outsource its logistics requirements, however, Defy has eleven remedial strategies to combat the dangers. Contribution: The field of logistics outsourcing and KPI appraisal is dynamic. There is a dearth of research dealing with KPI appraisal as a tool for successful logistics outsourcing in the leading companies of South Africa’s appliances industry. Therefore, it is envisaged that this research will play a momentous role in the field by offering fresh insights as well as contributing to the body of knowledge concerning logistics outsourcing and KPI appraisal

Leveraging the fully integrated supply chain

Thesis (M. Eng. in Logistics)--Massachusetts Institute of Technology, Engineering Systems Division, 2004."June 2004."Includes bibliographical references (leaves 65-69).(cont.) in the success of Lucent's turnaround and, from the patterns that emerge, a basis for a new holistic framework for designing and leveraging an integrated supply chain is offered. This framework suggests that attaining competitive advantage from supply chain capabilities lies in a firm's ability to incorporate corporate culture, leadership style, organization structure and both inter and intra tier governance methods into it's supply chain design in order to enable an integrated and extended organization where the channel expert can be identified and engaged in decision making in a natural, real-time and organic process.Over the past three years, in response to dramatic changes in the telecommunications industry, Lucent Technologies has realigned its corporate strategy from being a provider of manufacturing excellence to one of supply chain excellence. Supported by this realignment, Lucent has recently returned to profitability after eleven consecutive losing quarters, and has posted dramatic improvements in financial, operational and customer satisfaction metrics. Lucent's new strategy is focused on leveraging its supply chain capabilities to create a new extended enterprise that is both customer and supplier intimate, and operates as a broad reaching cross-functional Supply Chain Networks (SCN) organization. Pivotal to the success of this realignment was extending the scope of Lucent's supply chain activities, both internally and externally to the company. Internally, Lucent integrated such non-traditional SCM activities as sales, product design, and margin management into its newly created SCN organization. Externally, by outsourcing virtually all of its manufacturing, and much of the associated supplier management, to Electronics Manufacturing Services (EMS) partners, Lucent became responsible for the orchestration of an extended multi-tier supply chain that integrated abilities and expertise of functional teams within Lucent and within its EMS partners, raw component suppliers and customers. In this thesis, the Supply Chain Networks transformation at Lucent is examined in the broader context of the changes that took place in Lucent's: organizational model; leadership team; corporate culture; customer and supplier relationships; operations; and market space. The change that was effected in each of these areas is reviewed for its roleby Duncan M.L. Scholtz.M.Eng.in Logistic

Privatised and Unprepared: The NHS Supply Chain

Months after the arrival of the Covid-19 pandemic, huge numbers of UK health and care workers still lack adequate personal protective equipment (PPE). The aim of this report is to expose the role that the privatisation of health and social care has played in this preventable catastrophe. Privatisation has created a system which is both chaotic and bureaucratic – both fragmented and sclerotic. There has been an outcry over PPE shortages in media coverage of the pandemic, but little has been said about privatisation. This is a serious oversight, which this report will address

Managing multi-tiered suppliers in the high-tech industry

Thesis (M. Eng. in Logistics)--Massachusetts Institute of Technology, Engineering Systems Division, 2009.Includes bibliographical references (leaves 131-135).This thesis presents a roadmap for companies to follow as they manage multi-tiered suppliers in the high-tech industry. Our research covered a host of sources including interviews and publications from various companies, consulting companies, software companies, the computer industry, trade associations, and analyst firms among others. While our review found that many companies begin supplier relationship management after sourcing events, we show that managing suppliers should start as companies form their competitive strategy. Our five step roadmap provides a deliberate approach for companies as they build the foundation for effective and successful multi-tiered supplier relationship management.by Charles E. Frantz and Jimin Lee.M.Eng.in Logistic

Ready for Tomorrow: Demand-Side Emerging Skills for the 21st Century

As part of the Ready for the Job demand-side skill assessment, the Heldrich Center explored emerging work skills that will affect New Jersey's workforce in the next three to five years. The Heldrich Center identified five specific areas likely to generate new skill demands: biotechnology, security, e-learning, e-commerce, and food/agribusiness. This report explores the study's findings and offers recommendations for improving education and training in New Jersey

Characteristics of redistributed manufacturing systems: a comparative study of emerging industry supply networks

This paper explores the characteristics of redistributed manufacturing systems within the context of emerging industry supply networks (EI SNs), with a particular focus on their structure, operations and reconfiguration dynamics. A number of factors have resulted in the redistribution of manufacturing. Within Emerging Industries, advances in process and information technologies, have changed the physical and information characteristics of components and products, and the viable production economies of scale. Further, the emergence of new specialised companies fulfilling key research, production or service roles have changed industry structure and operations, and the conventional model of value creation. Six industrial systems are examined using an Industrial System mapping methodology providing a basis for cross-case analysis, selected on the basis of representing alternative and novel evolution paths that may provide insights into the characteristics of EI SNs within a redistributed manufacturing context. Cross-case analysis suggests several generic aspects to EI SNs, including the blurring of traditional industry boundaries and the critical requirement to manage uncertainty. Alternative forms of EI SNs are observed supporting particular EI evolution paths. Further, more adaptive SNs support increased product variety, with lower inventory models enabled by enhanced production and distribution flexibility, often located closer to demand.The authors would like to acknowledge UK Research Council EPSRC, the industrial collaborators who provided access to their organisations, and their supply network, industrial and institutional partners.This is the author accepted manuscript. The final version is available from Taylor & Francis via http://dx.doi.org/10.1080/00207543.2016.121476

The role of 1st tier suppliers in automobile product modularisation: the search for a coherent strategy

Modularization is a growing concept in auto industry. Architectural decisions had been many time studied from the car maker's point of view. This article addresses the question of supplier's strategy in the modular business. A prior publication (Fourcade Midler 2004) showed that supplier's involvement could take various forms, from light coordination to heavy investment in deep module redesign. This article will investigate how these different modular involvement profile could fit in general 1st Tier supplier's strategy. It is based both on a general study of automotive suppliers industrial field and an interactive research that we have been pursuing in conjunction with one 1st Tier supplier since 2001.