Abstract

This study is part of the CHISU project. Economic growth has increased rapidly for many decades and China offers a lot of possibilities for both large and small companies. This study focuses on purchasing from China and defining the supply chain between Finland and China. The intention is to help SMEs planning to start collaboration with Chinese suppliers. This study focuses on SMEs in Vaasa region.

First, this study reviews Chinese markets and development of its economy. The trade between Finland and China was observed as well. Second, the theoretical part of the study focuses on supply chain and supply chain management. In addition, attention is paid to global supply chain and global purchasing as global purchasing has become a critical strategic decision for companies competing on a global basis. Third, in the empirical part of the study, four case companies were interviewed. The goal was to find out the fluency of the supply chain, how the process has developed and what kinds of problems have occurred.

The results of the study show that the main factors affecting the selection of suppliers are price, quality, loyalty, and know-how. In general, companies have been very satisfied to the cooperation with Chinese and the supply chain process has been very fluent. Chinese people are hardworking, friendly and precise, and they really respect their customers. In the future, the interest towards China seems to increase. China is offering a numerous chances, and by benefiting these chances might offer assets and success to the companies. However, creating relationships to China takes a great deal of investments, and it includes risks as well. Anyhow, cooperation may offer both business development potential, and opportunity for learning.