Philips and SPX-CQ Met for Supplier Development

Royal Philips Electronics of the Netherlands is a global leader in healthcare, lifestyle and technology, delivering products, services and solutions through the brand promise of "sense and simplicity". With sales of EUR 27.0 billion in 2006, the company is a market leader in medical diagnostic imaging and patient monitoring systems, energy efficient lighting solutions, personal care and home appliances, as well as consumer electronics. Its annual purchasing volume was up to EUR 5 billion. Among that, 25 percent or EUR 1.5 billion was purchased in China. Moreover, purchasing volume for accessories (spare parts, tools) was over RMB 5 billion.

On June 15th, 2007, vice president of Philips supply management Mr. Reinoud Selbeck and Director of SPX-CQ Mr. Wang Wei met for cooperation on supplier development.

Mr. Selbeck introduced about Philips, its purchasing situation in China and supplier development. So far most of Philips' suppliers are located in Shenzhen, Dongguan, Shanghai and Shenyang.  Because of rapid increasing cost and shortage of power supply in these areas, Philips is going to shift its purchasing strategy to West China.

During the meeting, Mr. Selbeck asked about SPX-CQ and what services can be provided for Philips. Mr. Wang Wei gave detailed introduction. SPX-CQ is the first SPX established by UNIDO in China, aiming at providing services for subcontracting and investment in the field of mechanical manufacturing --metal and plastic processing. It is an important Chinese partner of AIAG, VDA, CCIP and other international industrial organizations and has provided satisfying services for Bosch, Vastas, Ingersoll Rand, and etc.

Mr. Selbeck showed interest in cooperation with SPX-CQ on supplier development in West China. He would appoint an executive in the purchasing department to contact SPX-CQ for further details.

Up to now, one executive from Philips supply management department has contacted with SPX-CQ.

Philips is interested in developing the suppliers in  Chongqing and is collecting information for the strategic planning of 3 to 5 years . They hope SPX-CQ can help them to know about the business environment and industries in Chongqing and provide shortlist of potential suppliers (especially in metalworking field) for them.