A comprehensive approach in sourcing suppliers and establishing collaborative partnership in cable market

Abstract

Historically, CLP had been employing renowned cable manufacturers from locations like European countries or Japan due to their obvious technological advantage and experience. Those cable manufacturers were capable of supplying a full spectrum of cables and accessories, giving assurance of good quality, convenience to project management and clear demarcation of accountabilities. The ever-changing business environment in the international HV cable supply market had however pushed the leading suppliers into forming joint ventures with local partners in developing countries to adapt to changing market requirements and to maintain a competitive advantage. They set up their cable manufacturing plants in the low-cost production locations and allowed technology transfer to their local partners starting from decades ago. The local partners absorbed foreign technology, sharpened their skill set and innovated in their own right to supply quality and reliable products at competitive price level. To grasp the market opportunity, CLP commissioned a cross-functional taskforce to develop a systematic approach in sourcing price-competitive yet quality suppliers around the globe, followed by establishing collaborative partnership with the suppliers. As a result, CLP managed to engage some capable medium-sized transmission cable manufacturers from a more diversified supply base, meeting its multi-dimensional business objectives such as cost, quality and timeliness. Another key benefit derived from the highly collaborative relationship with the medium-sized manufacturers is their full devotion to tailor services for CLP. For instance, a local manufacturer is willing to tailor slim cable accessories under CLP's support for managing the heavily congested installation environment in Hong Kong, while expanding its own product range for better competitiveness. This signifies CLP's success in establishing supplier partnership for mutual benefit which is also a fulfilment of its Corporate Social Responsibility (CSR) in the support of the local cable industry. In this paper, the authors would share the comprehensive approach adopted in sourcing cable suppliers and establishing collaborative relationship with them, and how it has been successfully implemented in the transmission cable projects in CLP.