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Wednesday, May 29, 2013

Huawei Says Apple’s China Experience Teaches Supply Chain

Huawei Technologies Co, China's largest maker of telecommunications equipment, said Apple Inc (AAPL)'s experience in the world's most populous nation shows the importance of supply chain
management. Foxconn has resolved 98 percent of the 360 issues

 raised by the group last year, yet faces a "challenging" task to meet a July deadline for cutting work hours to legal limits, the association said this month.

"Violation of overtime limits is a common problem with suppliers in China," Zhang said, declining to provide details on how Huawei suppliers fare in complying with the rules.
Huawei carried out on-site audits of 101 suppliers last year, 16 percent more than a year earlier, the company said in its 2012 Sustainability Report released today. The supplier wasn't allowed to enter into contracts with Huawei until those were addressed and it passed a second audit, the report said.
Huawei seeks 10 percent compound annual revenue growth in the next three to five years by expanding beyond mobile-network equipment and into smartphones, tablets and cloud computing.
Huawei, which ranks behind only Ericsson AB (ERICB) in sales of equipment for phone networks, was founded by Ren Zhengfei in 1987, about four years after he retired from the Chinese military. Huawei is employee-owned, with about 74,000 of the total 155,000 workers holding shares, according to its annual report released in April.

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