Abstract:
Hon Chuan, a leading producer of polyethylene terephthalate (PET) bottles in Taiwan, has developed a unique production setup to serve its Asian clients. The company has established production facilities at clients’ sites, using its in-house, in-line operation, which has won over beverage companies across Asia. This new operation model allows beverage companies to reap the advantages of outsourcing without incurring any related drawbacks. The beverage companies enjoy the benefits of vertical integration without bearing the associated costs. The case highlights this operational innovation, which helped Hon Chuan grow from a small family-owned business serving mostly Taiwanese clients to a publicly traded company controlling dozens of production plants across Asia.
Keywords:
Outsourcing Relationship, Vertical Integration, Production Setup, Supply Chain Management, Taiwan, Hon Chuan Group In-house Supplier of Beverage Packaging Materials Case Solution
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