波士顿-上海宝钢报告-BaoSteel-Board-Presentation-30Jul01-JS-SHI.pptVIP

Multi-sourcing channel to enhance product range Various segments/product grades Domestic and import Minimize product conflict with BaoSteel through coordination BaoSteel as preferred supplier Pre-determined share quota in key competitive categories CUSTOMER SHOULD RECEIVE A PACKAGED SERVICE OFFERING FOR TRANSFORMATION  “Cutting, Processing, Delivery and Services” Supplier relationship Warehousing Shearing cutting Deep processing Transportation Customer relationship Realize regional synergy through coordination virtually centralized logistics through IT system optimize supplier and customer match to realize better serving distance Build up national logistics network and provide flexible transportation means /delivery Broaden service varieties by leveraging equipment/technology within the region Balance workload allocation within region to maximize capacity utilization Right mix on TP and CP to meet both profit targets and utilization targets Forward integration in selective sectors/ customers (bending, punching,etc) Customer relationship management system Strengthen sales force joint marketing sales efforts with FG trading within region Establish leading position in SC service market capture value via downward integration fully leverage existing assets to set up development foundation PARTNERSHIPS WOULD BRING SIGNIFICANT VALUE TO BAOSTEEL IN SC BUSINESS Internal capabilities Small customer base – low capacity utilization High operating cost Limited expertise in deep processing Access to new customers/markets Joint customer development capability Cost sharing and scale effects Mutually complementary technology and experience Management goal Current issues External environment Market just emerging and with huge uncertainty Severe competition with high price pressure Risk sharing Lower financial commitment Pre-empt competitors Exert more control on the market Value proposition expected from partnership RECOMMENDED ORGANIZATION FOR TRANSFORMATI