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Chapter 7 - Chapter 7: Supply Chain

After hearing Xu Shenxue's suggestion, Xu's mother instinctively wanted to refute, but she held her tongue. After a moment of silence, she finally said:

"Boarding might not be suitable. She's in her second year of high school, and her studies can't be disrupted. Changing her environment suddenly could be detrimental. Besides, if she boards, it will be hard to find a tutor. How would the tutor teach her in the dormitory?"

Xu's mother sighed and added, "Recently, I've been busy opening a beauty salon with a few friends. The store is far from Anhua, and there's so much to prepare for the opening. I've invested over a million yuan and hold a major stake, so I need to oversee everything personally. I plan to stay at the Anhua house for a while; it'll be more convenient for me."

She looked at Xu Shenxue and concluded, "You stay here and take good care of your sister."

Xu Shenxue nodded. "That works."

While he wasn't eager to meddle in family matters, he recognized his responsibility after inheriting the original owner's business and family. Given the strained relationship between his mother and sister, he figured temporary separation would ease tensions.

By the next day, Xu's mother had relocated to the Anhua house. She called Xu Shenxue at noon to remind him to look after his sister, ensure she studied hard, and prevent any rebellious behavior.

Xu Shenxue readily agreed. In his view, his sister Xu Weiwei wasn't truly rebellious. The loss of their father had been a heavy blow, and their mother's constant nagging had exacerbated the situation. With a stable environment, she would likely return to normal.

After a quick lunch at the company cafeteria, Xu Shenxue spent the afternoon visiting a circuit board supplier's factory, accompanied by several members of the purchasing department. The visit was prompted by ongoing issues with their current supplier, whose recent batches had severe quality problems. One shipment even had incorrect hole placements—a basic and inexcusable error.

Weiku Electronics had returned the faulty goods, demanded a refund, and claimed compensation as stipulated in the contract. They were also seeking a new supplier.

Circuit boards weren't technically complex, and there were many manufacturers in Shenzhen capable of producing them. However, quality control was a persistent issue, particularly with smaller factories. While larger factories offered better quality management, they also charged significantly higher prices.

The purchasing department had already pre-negotiated prices and payment terms with potential new suppliers, narrowing down options. Xu Shenxue's visit aimed to assess the factories' capabilities firsthand.

For Weiku Electronics, which produced and sold 40,000 to 50,000 phones per month, a stable and reliable supply chain was crucial. Any disruption could halt production.

Shenzhen's supply chain ecosystem for consumer electronics was unparalleled. In Huaqiangnan, suppliers for virtually every component were readily available. Compared to other regions, where assembling a supply chain was challenging and costly, Shenzhen's network allowed manufacturers to source parts quickly and efficiently.

For Weiku Electronics, this meant that the purchasing department didn't need to look far. As soon as the circuit board issues became known, numerous manufacturers approached them with proposals. After initial screenings, only those meeting basic quality, price, and payment criteria were presented to Xu Shenxue for final consideration.

During his visit, Xu inspected the factory's operations, assessed its scale and production capabilities, and observed its management processes. Satisfied with what he saw—along with the favorable price and payment terms—he approved the new supplier.

That evening, the supplier's boss hosted a banquet for Xu Shenxue and his team. The event was brief and without pressure. No one dared to insist that Xu Shenxue drink alcohol, given the circumstances surrounding his father's death.

Although few outsiders knew the details, it was common knowledge within the industry that Xu's father had died in a drunk driving accident. As such, Xu Shenxue had adopted a firm no-alcohol policy at social events, sticking to tea. If others insisted on toasting him, they would drink wine while he sipped tea—an arrangement everyone respected.

With the supply chain issue resolved and his stance on drinking clear, Xu Shenxue's focus remained on stabilizing and strengthening the company's operations.

(End of Chapter)