My review of this article is unique, as I have combined several insights to come up with an opinion. International manufacturing firms have to make and sustain good relations with local supply chain partners or distributors. With the perspective of China, local distributors are effective. They contain the customized supply chain process to reach the destinations according to the company’s requirements in an effective and efficient manner (Liu and Wang 135). It is a fact that China is still maintaining its traditional supply chain or distributor practices as compared to the western business culture. In China, there are two approaches, which have been considered with the passage of the time.
For Instance, in the economic approach, Chin’s distributors intend to make the whole process quite cheaper and effective in the best interest of global partners. However, on the other hand, when it comes to the concentrate suppliers in the global markets, China is looking to maintain the relationship management to retain best suppliers (Buvik and College 9). However, comparatively, according to insights, derived from the article, many distributors are using the economic approach to be effective and lucrative. In the dynamic business environment, there are some flaws in the supply chain process. For Instance, due to lack of holistic approach, the relationship has not been enhanced. It seems a big barrier in the strategic partnership process, and it is a big thing to worry, as far as the distribution sustainability in China is concerned. Relative to these local distributors and global manufacturing firms, still, these local distributors are gaining the success and profitability, which indicates missing links to derive some results with the perspective of relationship management (Carvalho and Sequeira 12).
Obviously, there are several relationship patterns, which are to be adopted in China like western business practices. However, this exploratory nature of the study has focused on these patterns an in the context of China, and hypothetically, derived some results. The chances of improvement in the distribution process are triggered by the relationship management and interactions of global manufacturing and local distributors are necessary to justify the purpose (Liu and Wang 144).
Work Cited
Buvik, Arnt and Agder College. “The Impact of Vertical Coordination on Ex Post Transaction Costs in Domestic and International Buyer-Seller Relationships.” Journal of International Marketing 10.1 (2002): 1-24.
Carvalho, José Crespo de and Luís Sequeira. “Buyer-seller conflict and cooperation in marketing channels: port wine distribution.” International Journal of Wine Research 5.1 (2013): 9-15.
Liu, Hong and Yen Po Wang. “Co‐ordination of international channel relationships: four case studies in the food industry in China.” Journal of Business & Industrial Marketing 14.2 (1999): 130-151.
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