In 2001, electronics manufacturing services (EMS) provider flextrac Luonikesi international companies are facing a full of opportunities and a challenging market environment. Such as HP, 3COM, Nokia and other high-tech original equipment manufacturer (OEM) outsourcing trends appear to 弗莱克斯罗 Knicks international companies for three consecutive years of annual income of more than 50% annual growth rate reached 12 billion U.S. dollars after the peak. However, orders from electronic manufacturing services is decreasing at the same time, electronic manufacturing services continue to be from the manufacturing costs and direct material costs and greatly reduces the pressure. Unfortunately, although flextrac Luonikesi the purchasing power of international companies are often more than their OEM customers, but it is difficult to obtain the lowest price available resources. Flextrac Luonikesi International specific information technology systems has also brought a number of procurement issues, such as the high price it is difficult to identify the issue and amendment of resource acquisition, or difficult to take full advantage of low prices offered by the market. Why is this? EMS providers, including all leading companies are 弗莱克斯罗 Knicks them through mergers with smaller companies and access to OEM equipment industry achieved growth advantage. Management advantages usually mainly in the transport of products and get market share, not reflected in the expansion of the global network through the process of integration and information systems.
In order to achieve and maintain the decline in material costs, 弗莱克斯罗 Knicks had to overcome three major corporate procurement. First, the local site and sometimes higher than the lowest price of the contract price to buy spare parts orders. Typically, where the purchase of spare parts order process give the full autonomy of the local site. Even if the global sourcing and supplier contract is negotiated, the site buyers can still choose a different procurement sources. Second, the local sites are not strategic partners from the purchase of spare parts there, so hard to strengthen and supplier management, access to large discounts on purchases. Because the site may not be aware that the purchaser will have a new contract, or may be established between local suppliers and strong relationship, or maybe the need for fast turnaround to meet customer needs, so it is often the case above. Traditional manual and periodic reporting process does not allow the purchaser to calculate costs and identify efficiency opportunities.
弗莱克斯尼 Cox's purchasing managers know they need a way to improve their contract negotiation and implementation of process performance. One unresolved question is "How to achieve?"
Ineffective supply chain performance management deficiencies
弗莱克斯尼 Lakes situation facing the company is not rare. In fact, many companies in other industries are in their supply chain is facing the same problem. There are many issues at stake in all aspects of the supply chain - procurement, manufacturing, distribution, logistics, design, financing and so on. Like the well-known Dutch boy saved by blocking the Dutch levee vulnerability as apply some simple, temporary solution to entice purchases of repair supply chain problems. However, experienced procurement managers know very little supply chain is only a single vulnerability, often with obvious long-term fix, the unintended consequences (Table 1).
Table 1: a temporary repair of long-term supply chain and unintended consequences
Leading provider of enterprise by focusing on two key dimensions of adaptive management of supply chain performance. First, they are usually defined to address supply chain solutions to the scope of the problem. Their efforts through the supply chain as an interactive system rather than functional "silos" to avoid unintended consequences. Second, they question what is the real solution to initiate preferences. They continually focus on to prevent problems rather than fight with the problem to continue to receive appropriate improvements. It looks all common sense, but many organizations still manage supply chain performance of three common defects afflict hard.
The first major flaw is to focus on the part of the overall sub-optimization. Easily from the infighting in the organization are often exposed uncoordinated tactical responses are more by internal or external conflict, coordination and cooperation, rather than driven. As a manufacturer of radio communications, Zenith was founded in 1915, it dominated the 1972-1978 color TV market. Although the advantages of a market share, but the low-cost Japanese imports began to Zenith TV sales have an impact. It also attempts to shift manufacturing operations to Mexico or Taiwan. Unfortunately, Zenith has never succeeded. For the lack of competitive advantage for the defense, accusing each other of internal departments, the company began to accuse competitors. Saddled with debt, declared bankruptcy in 1995, Zenith, LG Electronics acquired by the brand.
The second big flaw is the focus on the appropriate branch, but a continuous, balanced approach. Although the advantages of font organization can gather strength toward the center the company goal, but after some time, customers, suppliers and employees will drive the true value of the production troubles and confusion. From a single retail store in Los Angeles fast-growing brand for the United States third in sports shoes manufacturers, LAGear in 1989 with 10 billion market capitalization. It's good luck in the next few years, a series of radical strategic shift as the failure of change. To women's fashion footwear known LAGear, when its men's basketball shoe introduced into the stock when there is a crisis buckle leisure shoes sold poorly. It then 80 styles of women's shoes have become less and less popular the, LAGear way through the sale of surplus discount shoes, behold the action it further tarnished the brand. It's children light shoes were a temporary success, but soon the government inspectors discovered shoes in a circuit containing mercury converter. After this series of supply chain and quality issues, and not by the corresponding concentration of the corporate culture of containment, LAGear1998 filed for bankruptcy.
Currently, Kmart found it in a very similar environment. In the 80's and early 90's, Kmart through access to specialty retailers such as OfficeMax and Borders bookstores in the shares, realize diversification, and in the subsequent 90 years, in its supply chain, building on a lot of investment. Unfortunately, the lack of coordination of IT investment in the supply chain does not do it actively preparing to meet with Wal-mart started the price war.
The third major flaw is concerned about the right things until they become wrong business. "Firm" the organization will not be easy to adapt to change, because the functional relationship has been strictly defined, organized under the static program implementation activities.
The innovators dilemma in, Clayton Christensen stated that: It is precisely because the (business can not stay ahead in the industry) listen to their customers to be able to offer their customers more and better products for active investment in new technology and because they carefully studied market trends and systematically to ensure the highest return on investment on innovations in capital investment, they have lost the leading position in the market.
Digital Equipment Corporation (DEC) spend a lot of the cost of the implementation of vertical integration and expand its line VAX computer system. Publicity by the media and analysts, between from 1984 to-1988, DEC's sales doubled, revenue almost quadrupled. However, Unix and PC, the importance of open systems to DEC off guard. Temporary dismissal of employees, closing plants insufficient to prevent losses. Finally, the Compaq Alpha microprocessor for its high-end merger of the DEC.
As previously discussed, the adaptation by the secret organization to respond to the concerns and ensure continued proper things. GE unity of its wide range of business - including craft engine, television - mainly achieved through the entrepreneurial culture.
In Jack Welch's book, he stated that "My goal is to put in a large enterprise spirit of small businesses to build a place outside the old industrial enterprise organizations, it is more highly motivated, better adaptation, than those one-tenth the size of our company more flexible. " At the end of the book, he said, "Business success is not so much the role of the grand prophecy than it is to quickly respond to real changes in the results. That is why the strategy must be dynamic, expected." Gathered by The success of our customers, using 6σ as the integration of philosophy, identify and apply the best ideas regardless of resources, GE's market share at Welch as CEO of two decades from 180 million U.S. dollars to 400 billion U.S. dollars.