For years, Huawei has been working with leading consultancies such as IBM, the Hay Group, PwC and FhG to carry out management transformation in order to keep abreast with international industrial benchmarks. In terms of Integrated Product Development (IPD), Integrated Supply Chain (ISC), human resources management, financial management and quality control, we have undergone comprehensive transformation, introduced the industry's best practices, and established IT-supported management platforms.
Through consistent implementation of management transformation, we have gradually perfected our operation and management processes. In addition, we have managed to strike a balance between our company's size, business profitability, and cultivating our expertise.
With the introduction of practical industry benchmarks that are implemented through processes such as Marketing Management (MM), Integrated Product Development (IPD), Integrated Supply Chain (ISC) and Customer Relationship Management (CRM), complemented by the transformation of our financial management and human resources management (Hay Group), we have completely transformed our business processes and established an IT platform to support such transformation.
Starting from the product lines, Huawei's Executive Management Team and "Strategy and Customer Standing Committee" strengthened the decision-making ability of the marketing system for understanding customer requirements and planning Huawei's strategic direction and business development. With the help of the Investment Review Board (IRB), Marketing Management Team, Product System Management Team, Operation & Delivery Management Team and various other supporting teams, Huawei has ensured the efficient implementation of an overall strategy that is driven by customer needs.
Huawei's production process system including the 3D warehouse, the automatic warehouse and the entire production line layout was designed by FhG of Germany. The new system reduced the need for transportation of materials and decreased production time, thereby increasing the all-round efficiency and quality of production.
In 2007, Huawei inaugurated the IFS (Integrated Financial Service) program, addressing all essential financial reporting functionalities from a highly responsive worldwide platform. The new IFS program provides a uniquely strong backbone for Huawei's future business expansion and fulfillment of our global strategic goals. IFS capabilities also fulfill the essential role of extending and deepening our partnership with leading operators.
Huawei has developed a flexible supply chain, which has enhanced our competitiveness in terms of providing fast, cost-effective and quality supply. We have also formulated pertinent supply guarantee strategies and built flattened manufacturing organizations that allow us to meet market demands efficiently and flexibly. In addition, we carried out transformation of the Integrated Supply Chain (ISC) to ensure that new processes and systems were implemented effectively, and also introduced quality engineering technologies to continuously improve supply chain capabilities and customer service. We have also developed partnerships with principal suppliers, enhanced purchase performance management, and carried out supplier certification procedures based on the industrial benchmark, TQRDCE.
