A Study on Process Reengineering of Supply Chain Management of Bike Industry from the View Of Transaction Cost Theory - A Case Study of the Original Equipment Manufacturer in Central Section of Taiwan

• Main Authors: Kuang, Ho Fang, 曠合芳
• Other Authors: Hon, Jau Shin
• Format: Others
• Language: zh-TW
• Published: 2012
• Online Access: http://ndltd.ncl.edu.tw/handle/63466938918472264087

碩士 === 東海大學 === 管理碩士在職專班 === 100 === The purpose of this research is to analyze how an OEM (Original Equipment Manufacturer) can re-establish a supply chain procedure in Taiwan’s bicycle industry according to a case study, using an OEM bicycle assembling factory in central Taiwan as an example. Due to the global competing environment, the current Taiwan bicycle industry has transformed to produce and manufacture expensive products with high added value. However, recently international bicycle companies have controlled the advantage of the product designs, specs and so on. In addition, bicycle component factories have controlled key components. As a result, OEM bicycle assembling factories have to change to meet bicycle companies’ requirements. Due to changes of the bicycle industry supply chain, OEMs have replaced the role of trade agents with the research and development department, using the concept of the transaction cost. The research and development department completes the processes of collecting information on international bicycle brands and follow-up monitoring procedures. It helps the bicycle companies to lower the transaction cost and further increased their reliance on OEM factories. Moreover, OEM factories have employed the agency cost concept to improve their internal order process procedures, and selecting the ERP system to reduce the time cost caused by job overlapping. Besides, in order to shorten the delivery time, OEM factories re-organize their internal materials in stock as well as the production line, and also re-construct the order process procedures. Lastly, OEM factories have invested in the new machines and inspection equipment to improve the product quality. For the bicycle companies, OEM factories’ research and development department and final inspections greatly reduce their original transaction costs. For OEM factories, with improvements of internal process procedures as well as increases of machinery equipment, they can reduce job overlapping costs caused by production errors, increase production efficiency, and hence lower agency costs.