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CONTENTS1.0Introduction..........................................................................32.0Distributionsystem..............................................................32.1InternationalenvironmentandtheIPD.............................32.2IPDcanincreasebusinesscompetitiveness........................32.3Thecontributionofqualitystandards................................42.4Technologyandthecompany’sdecision.............................42.5Thestrategicnature..............................................................63.0Methods,techniquesandequipment.................................63.1TheFactorsAffectingOverseasPurchasing......................63.2TheFactorsAffectingExchangeRates...............................63.3FinancialRiskFromCurrencyExchange..........................73.4Counter-trade........................................................................83.5ForwardBuying....................................................................83.6ContinuityandSecurity.......................................................84.0Outcome3.............................................................................94.1Strategicroleinreducingcosts............................................94.2Objectivesinmakingadecision..........................................94.3Thecompany’sinternationalpurchasingcycle...............104.4Purchasingandotherdepartments...................................104.5Contributiontoappraisalofsuppliers..............................114.6Theneedforpaymentdocumentation...............................114.7TheimpactofINCOTERMS..............................................115.0DistributionChannels.......................................................125.1Theintermediaries..............................................................125.2Freightforwardersindistributionchannels....................135.3ThecontributionofICT.....................................................135.4Transportmodes.................................................................146.0Conclusion..........................................................................157.0Reference.............................................................................161.0IntroductionHuaweiTechnologiesCo.Ltd.isaChinesemultinationalnetworkingandtelecommunicationsequipmentandservicescompanyheadquarteredinShenzhen,Guangdong.Itisthelargesttelecommunicationsequipmentmanufacturerintheworld,havingovertakenEricssonin2012.Itsproductsandserviceshavebeendeployedinmorethan140countriesanditcurrentlyserves45oftheworld's50largesttelecomsoperators.ThisreportisabouttheroleandstatusofHUAWEI'sinternationalpurchasingdepartment.2.0Distributionsystem2.1InternationalenvironmentandtheIPDTheeconomicenvironment:Economicglobalization.Withtherapiddevelopmentofcommunicationtechnologyandcomputernetworktechnology,maketheenterprisecommunicationwiththeoutsideworldhasbecomemoreconvenient.Enterprisecompetitionfromdomesticmarkettotheregionalmarketandglobalmarket.Enterprisesofrawmaterialscanbederivedfromtheforeignmarket,servicecanbegearedtotheneedsofglobalsales.GlobalprocurementwhichisbuiltonGlobalmarketsandglobalunderthesamespecificationofaglobalallocationofresourcesway.Inthepast,Huawei‘sdevelopmentdependsontheregionorthecountry'sresources,technology,marketoperation,bothinprocurement,productionandsalesinthedomestic.Withtherapiddevelopmentofcommunicationtechnologyandcomputernetworktechnology,Huaweiandtheoutsideworldcommunicationbecomemoreconvenient,forexternalinformationtoenhancetheability,Huawei’scompetitionfromdomesticmarkettotheareathemarketandglobalmarket.SotheIPDofHuaweicouldbeuseful.2.2IPDcanincreasebusinesscompetitivenessProfitisamotiveforceofthecapital,onceinthegreaterscopeforbetterallocationofresources,capitalacrossnationalboundariesandgeographicalbarriersmustbewithinthescopeofthelargerseekbetterresources.Internationalprocurementcanenjoypreferentialpoliciessuppliersexportofthehostcountries.Implementationofinternationalprocurementcouldreducethecosts.Atthesametime,theinternationalpurchasingforsupplier'scountry'seconomicdevelopmenthasbroughtbenefits(suchasincreasingemployment,GDP,etc.),andhelpclientstoacceptPurchaserproducts.GlobalsourcingisadvantageoustotheHuaweicompetitionintheglobalscope.Throughtheinternationalprocurement,HuaweicouldreducethecostsandhelpclientstoacceptHuawei’sproducts.SotheinternationalprocurementdepartmenthasimportantsignificancetoHuawei.2.3ThecontributionofqualitystandardsNationalStandards:Chinesestandardsmaybeeithermandatoryorvoluntary.MandatorystandardshavetheforceoflawasdoothertechnicalregulationsinChina.Theyareenforcedbylawsandadministrativeregulationsandconcerntheprotectionofhumanhealth,personalpropertyandsafety.Allstandardsthatfalloutsideofthesecharacteristicsareconsideredvoluntarystandards.NationalStandardscouldhelphuaweistandardizationproduction.Moreover,NationalStandardscouldhelpHuaweitoopenthedomesticmarket,andaccumulatedthefundsofoverseasprocurement.Internationalstandards:Internationalstandardsarestrategictoolsandguidelines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