文档介绍：SGSCMF-W1-2002
Supply Chain Performance Management
Stanford Global Supply Chain SGSCMF- W1-2002
Management Forum October 2002
Continuous and Sustainable Improvement Through
Supply Chain Performance Management
Hau L. Lee
Stanford University
Jason Amaral
merce
In 2001, electronics manufacturing services (EMS) provider Flextronics International Ltd.
was facing an exciting, but challenging environment. Fueled by the outsourcing trend of
high tech original equipment manufacturers (OEMs) like HP, 3Com, and Nokia, Flextronics’
annual revenues topped $12bn after three years of annual growth in excess of 50%.
However, orders across the EMS industry were slowing down and, at the same time, OEMs
continued to press for significant reductions in manufacturing and direct materials costs.
Unfortunately, Flextronics did not always source at the lowest available prices, despite
having purchasing power that often exceeded their OEM customers. Flextronics’s disparate
information technology (IT) systems led to pliance problems that made it
difficult to identify and correct sourcing problems with high prices, or take advantage of low
prices available in the market. Why? All of the top EMS providers, including Flextronics,
had predominately grown through the acquisition of their smaller peers and OEM facilities.
Management priorities had traditionally been on shipping product and capturing market
share, not on integrating processes and information systems across an extensive global
network.
In order to drive – and keep – material costs down, Flextronics had to e three key
pliance issues. First, local sites sometimes purchased parts at a PO (purchase
order) price greater than the lowest contracted price. Historically, the ordering process gave
local sites significant autonomy in terms of where to purchase. Even though global contracts
were negotiated with suppliers, site buyers could