Solectron: From Contract Manufacturer to Global Supply Chain Integrator Brief Case Overview: In 1977, Solectron was founded in the wake of the solar energy boom, and primarily focused on making solar energy products. They soon began assembling printed circuit boards for other electronic firms. Solectron was located close to Silicon Valley and its electronic industry, so a number of clients were readily available for its manufacturing services. In the early 1980s, Solectron turned their efforts towards contract manufacturing, which turned the job shop business into an important industry. Solectron began to purchase the manufacturing facilities of its customers, which enabled them to sign long-term supply contracts with them as well as …show more content…
By becoming in essence a global supply chain integrator, Solectron is able to utilize each production facility to an optimal level, source from regions where most value is captured, as well as capitalize on market lead-times from close proximity to target markets. • Service – Building upon a great foundation of customer service, Solectron has developed to encompass an essential array of services to offer their customers. This cornucopia of services was broken down into three distinct business units, with one supplying each. As stated by Diana Farrell in Beyond Offshoring, the IT/business process outsourcing in a global standpoint has only a 1% annual value of global trade to annual value of industry sales ratio, indicating significant potential for improvement and capitalization of future revenues. By offering these services especially in the EMS industry that is mostly production centered, Solectron is able to differentiate themselves from its competition by offering excellent service competence. Considering this service factor coupled with great product quality, Solectron is very hard to beat in this industry. o The technology solutions unit provided modular and embedded systems design and manufacturing systems that customers could utilize to enhance their operational efficiency. o The global manufacturing unit allowed Solectron to
FUTRONICS Inc. is a private company located in Lexington mainly categorized for modems, monitors, disk drives and terminals. It is moreover in to sales and services. This case is about the replacement of Futronics’s central office stores by an outside service provider. In this case supply management manager have an opportunity for investigating selected outsourcing in-house services.
Contrary to the situation at E-Z RP, there is no linkage of customer service representatives to development teams. For instance, CRSs are often the last to gain access about new information or new products. In terms of the organization of customer service, E-Z RP uses a specialized call center where customer service representatives deal with a single product. At Datatronics, the call center is centralized and CRSs deal with all products. E-Z RP uses the second tier support while Datatronics uses a minimal second-tier support. In terms of the training of CSRs, Datatronics only provides minimal on-the-job training while E-Z RP provides extensive training. Datatronics hires employees with basic customer service ability while E-Z RP recruits employees based on customer service skills, business knowledge, and communication ability. The performance metric at E-Z RP is the level of customer satisfaction, while the metric at Datatronics is the time on call or between calls. Although Matt does not intend to reproduce E-Z RP’s customer service system at Datatronics, these are the key issues that he ought to consider in making recommendations for changes at Datatronics.
Utilized company's business processes as well as the in features and capabilities of the EDI software - contributed to system enhancements, vendor resolutions and delivered solutions that met the business unit objective
Businesses benefit from having a good relationship with their suppliers of raw materials and components. In manufacturing, companies are adopting “Just-in-time” manufacturing. This means that businesses only produce when they have an order, and they only get materials delivered when they are needed. Businesses require reliable and efficient suppliers to be able to order their stock last-minute.
United Parcel Service (UPS) and Hewlett Packard (HP), both global leaders in their industries, strategically aligned themselves to capitalize on their ability to competitively provide superior services to their customers. UPS, a global distribution company and HP an information technology firm signed a contract solidifying a three year partnership in the early 2000s enabling them to capitalize on both company’s core competitive competencies already in place. UPS and HP recognized their competitive strengths and abilities in domestic and international territories as they continued to seek
Quick to react to market trends due to its supply chain design, operation & delivery
3. Centralized IT system for the affiliates with the rollout of new technologies outsourced –
The new business process and integration tool also offered real-time visibility into its extensive manufacturing process, including tracking inventory, handling billing and monitoring vendor performance for on-time delivery and other measures. The system was fast, reduced errors and improved efficiency.
Datatronics is a leading organization which serves their customers with Enterprise resource planning integrated solutions. Matt, leading a small team of developers at E-Z RP for fully integrated CRM/ERP/service management suit for small and medium sized enterprises. Matt’s team was working actively for sales and customer group. EZ-RP was
Supply Chain Management : The vertical integration in the supply chain led them to achieve shorter time frame of release and also helped them to
Solectron Corporation is but another classic case of a company that benefited immensely from the dot.com boom, only to experience the pains of the bust as the dot.com companies went down in the early 2000s. From its humble beginnings in Milpitas, CA as a solar energy products manufacturer, Solectron grew to be a highly successful global supply chain integrator with revenues of $18.6 billion by 2001. From the time it was founded in 1977 through 2000, the company grew in leaps and bounds mainly through lateral acquisitions.
* MM possesses a competitive position in this segment in terms of quality product offering and close customer relationships through high level of customer support.
Procurement: More than 50 of Intel's most important material suppliers have online access to confidential engineering and product-specification documents, reducing the amount of time it takes to design products and get answers about Intel's needs. Using a "vendor-managed inventory process," allows Intel to accurately reconcile its suppliers' inventory on hand, materials in transit, and shipment projections with a customer's shop-floor consumption rate. The process has given Intel more-accurate forecasting data and allowed the company to respond faster to demand fluctuations.
Quantum Corporation had formed the eSupplyChain Group in April 2000 with the aim of restructuring it's, then inefficient, supply chain and take the advantage of new emerging e-technologies to improve efficiencies across the chain. The company has recently entered into a new strategic alliance with eleven other top computers makers and suppliers. This alliance, known as eHITEX would build a new B2B online exchange protocol for supply chain management and
One of the major drivers of success at Tata Motors Ltd. (TML) was its ability to fully exploit information technology to drive business goals and reduce cost. The company was an early adopter of CAD and CAM systems