In the last century, vertical manufacturing strategies were still the rule for manufacturers of high-technology electronics. In 1990, the global market was worth nearly $100 billion, while less than 5 percent of all manufacturing was outsourced. A tremendous surge in manufacturing outsourcing began in the mid-1990s and continued into the 2000s. During this time, a [...]
Tag Archives: Manufacturing
ASCET: Solectron has implemented lean logistics extensively. Have you achieved a pull model of demand-centric inventory with this approach? Marc Onetto (MO): Lean logistics is a journey, not a destination. If you asked Toyota today if they have perfect demand-centric inventory, I think they would tell you that they still have things to improve [...]
Retail inventory management is what many automotive manufacturers call their attempt at vendor-managed inventory. As with all inventory-dependent industries, wrestling with inventories and balances is a huge battle with every original equipment manufacturer building and supporting multiple vehicle models, each with thousands of individual parts. Many automotive manufacturers have tried to control their dealers replacement [...]
Cascade Designs is a Seattle-based manufacturing company. Established in 1973 by two ex-Boeing engineers, we make and sell products that enhance the active lifestyles of our consumers. Our primary line of business is selling products that allow millions of people to enjoy the great outdoors. Our outdoor brands include Therm-a-Rest, Mountain Safety Research, SealLine, Platypus [...]
In their pursuit of high performance, one of the most powerful and least leveraged tools that companies have is price. The reason is simple: price increases usually reach the bottom line in one piece, while the advantages of lower unit costs or higher sales are diluted. Thus, for a company with 10 percent [...]
Today, the concept that the service business can be the profit engine for product manufacturers and resellers looking to achieve high performance is not new or even particularly insightful.
Many companies, such as Caterpillar and General Electric, have understood this premise for decades and they have driven their bottom line with service profits. Others, such as Dell and Home Depot, have recently scaled up their service capabilities to capture profit while simultaneously growing their top line.
Perhaps better than any other manufacturing sector, the electronics manufacturing services (EMS) market understands the impact of the bullwhip effect.1 Small changes in end customer demand can result in large variations in orders placed upstream. Customer orders may be buffered to ensure inventory availability in times of short supply. In time, these and other sources [...]
ASCET: Many experts have called Dell’s supply chain its most competitive advantage. How was that accomplished, and how long did it take? Hunter: In the early ’90s Michael [Dell] really came to grips with the value of supply chain when we had some setbacks with notebook computers, and wrote off a fair amount of inventory. [...]
ASCET: What exactly is the Supply Chain 2020 project about? Lapide: The Supply Chain 2020 project is a multiyear initiative. Ultimately, it aims to identify the innovations that will be the foundation of successful supply chains 10 to 15 years into the future. The project deliverables will entail a variety of publications, including one or [...]