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In Difficult Economy, Leading Companies Are Transforming Their Supply Chains
Core high-tech consists of semiconductors, contract & design manufacturing, original equipment manufacturing, consumer electronics, and telecommunications. Most companies in this segment are highly impacted by the economic downturn, trying to reduce working capital, and segmenting product decisions based on profitability.

Globalization is requiring high-tech supply chains overall to re-examine their organizational structures, performance management models and collaborative methods. Over the past 10 years, the high-tech network evolved to a global model, and visibility, for the most part, has been achieved. However, the challenge going forward is to build global...
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Asset-Lite Manufacturing Brings New Supply Chain Challenges
High-tech organizations have evolved their supply chains that specialized in flow of materials into supply-demand networks where information flow is more critical to manage. This has resulted in high-tech supply chains to be asset lite and information heavy. There is a need to cash this information into tangible business value through the creation of a flexible and responsive supply chain.

High-tech industries are showing a higher percentage of companies that indicate they have completed a redesign of their domestic and international supply chains. This indicates that they are ahead of the curve in terms of supply chain transformation based on the key pressures being faced in the marketplace. The top three pressures faced by the high-tech industries are: the need to contain supply chain costs to remain cost competitive (68 percent); demands to manage a more global business (44 percent); and the escalation of customer service demands (41 percent).

Some of the key business conditions faced by high-tech industries are:...
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On the Leading Edge - And Still Leading
High-tech companies helped to pioneer the concept of outsourced manufacturing. But did they create a monster? Those same vendors that took over the actual making of product are now branching out to provide other types of services - to the point where they are posing a competitive threat to name-brand original equipment manufacturers. Ann Grackin, managing director of the Supply Chain Intelligence Service of Marsh, discusses how the high-tech sector is dealing with...
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Intel Bypasses China to Manufacture in U.S.
It's been a dismal decade for manufacturing, with the more than 2 million U.S. jobs heading overseas. Then, along comes Intel Corp., which has announced a plan to spend $7bn to upgrade its manufacturing in the U.S.--a move that will retain or create about 7,000 jobs.
Intel is facing the same economic headwind slowing down all...
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What Worries Electronics Supply Chain Managers
Most OEMs understand the potential competitive advantage of their supply chain but are concerned about the viability of key supply chain partners, including both EMS providers and component suppliers. So says a recent survey from Riverwood Solutions, a managed supply chain services provider. Additionally, a large number of companies are considering strategic operations alternatives--such as relocating outsourced production to different geographical regions or partners--to address the heightened need to further reduce costs in this challenging environment.
Thirty-one percent of OEMs say they are...
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Japan's Electronics Firms: Too Big for Their Own Good?
To see the problems facing Japan's electronics companies, pop into one of the huge gadget shops in Tokyo's Akihabara district, the consumer-electronics capital of the world. Nine domestic firms make mobile phones. Then head over to the appliances section: five of the same firms offer everything from vacuum cleaners to rice cookers. Three of them make the escalators that carry you through the shop. In short, the industry has too many companies selling too broad a range of products that...
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Cisco Unlocks Value From Product Returns
The area of product returns was "a vast uncaptured opportunity" for Cisco Systems, Inc., according to Dan Gilbert, vice president of supply chain field operations. He is joined by senior director Rehman Mohammed in discussing how Cisco transformed its returns process from a cost center to a profit-generating operation in just three years. Before the program, fewer than one in 20 of Cisco's total returns was being put back to work - and the number was zero for product trade-ins. Gilbert and Mohammed talk about how Cisco raised that overall figure...
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Past High-Tech/Eletronics issues:
January, 2009
November, 2008

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