An oft quoted study published by the National Institute for Standards and Technology reported that there was approximately $3.9bn of waste in the electronics supply chain due to poor coordination. Given the limited product and geographic scope of that study, I believe their numbers are modest. Our research indicates that, globally, there is more than $250bn of waste in the electronics value chain and over $900bn across all global manufacturing value chains. Waste, in this context, doesn't refer to environmental refuse, but to unnecessary delays and costs in the classic lean manufacturing context. Given the tight profit margins in the electronics industry, recapturing these costs and shortening cycle times should be central to a supply chain excellence strategy.
Source: Industry Week, http://industryweek.com
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