Since the 1980s numerous Hong Kong toy businesses have moved their manufacturing locations to China to be able to get benefit from not just low labour and land expenses, but additionally a good enough labour force, a situation that is hard to attain in Hong Kong. In the present day, several local Chinese toy firms are well developed that may be a risk to Hong Kong toy businesses, specifically in cost. Regardless of this, Hong Kong toy firms are still competitive in design capability, item quality, responsiveness, consumer services and delivery. A lot of Hong Kong toy manufacturing activities are sourced to tier suppliers through Strategic Sourcing, having an objective to strengthening the sourcing overall performance when it comes to item quality, cost and delivery, Hong Kong toy companies can take on Chinese toy firms and fulfill customers’ requirements. In contrast to conventional procurement that is only relevant to industrial activities between a purchaser and a supplier, Strategic Sourcing entails proactively integrating supply-related activities. It is actually made up of a group of value added processes for a business to generate requirements, create sourcing methods, and handle suppliers.
This study looks at the development of Strategic Sourcing in the Hong Kong Toy Business and aims to better sourcing performance for the Hong Kong Toy Industry. The study comprises 4 stages, namely, “Hierarchical Strategic Sourcing Model”, “Strategic Sourcing in the Hong Kong Toy Industry”, “The relative value of Strategic Sourcing categories and major success elements for the Hong Kong Toy Industry” and “Self-assessment System in Strategic Sourcing for the Hong Kong Toy Industry”. The initial stage will be the “Hierarchical Strategic Sourcing Model”. A Hierarchical Strategic Sourcing Model with hierarchies of criteria (3 Strategic Sourcing categories) and sub-criteria (fourteen major success Strategic Sourcing elements) in Strategic Sourcing have been made through the literature evaluation. The next stage is the “Strategic Sourcing within the Hong Kong Toy Industry”. The Hierarchical Strategic Sourcing Model with the criteria (three Strategic Sourcing categories) and sub-criteria (14 important success Strategic Sourcing elements) has actually been analyzed by way of a questionnaire survey which has been performed in the Hong Kong Toy Industry.
The empirical data for this research has been drawn from a survey of 205 firms in the Hong Kong Toy Industry. The findings reveal that three Strategic Sourcing categories (SSC) and 14 major success Strategic Sourcing points (KSF) are crucial; nevertheless, the extents of implementation of fourteen KSF are lagging.
Source: City University of Hong Kong
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