HIGH-TECH & ELECTRONICS
High Supply Chain Priorities
for High-Tech in 2011
As high-tech companies
move forward into 2011, it is
critical to develop a list of
supply chain priorities for the
year. Topping this year’s list
is a renewed focus on logistics and manufacturing outsourcing and an increased
sense of urgency in developing the Chinese consumer
market for new revenue. In
addition, there is a growing
need to create additional
value from an often under-appreciated source—the service supply chain.
—Greg Hazlett, principal at Tompkins
he past year’s challenges have left high-tech companies with a
new set of significant priorities for 2011:
Logistics and Manufacturing Outsourcing: Outsourcing provides
the opportunity for high-tech companies to maximize results by
focusing on core competencies, while delegating non-core processes and activities.
Globalization—China as a Consumer Market: Global business is looking to
China not only for sourcing and production but for growth. Companies around
the world are gearing up to begin selling or further ramp up sales capabilities
into China’s growing consumer market.
Reverse Logistics/Service Supply Chain: The service supply chain helps companies differentiate themselves from their competitors while reducing costs and
improving residual value recovery from their returned products.
Uncertainty: High-tech organizations must accept uncertainty and implement agile processes that allow them to move forward.
Maximizing Supply Chain Flexibility:The primary factors driving this industry—frequent new product introductions, short product lifecycles, speed to
market, new distribution channels, and changing consumer preferences—
require more flexibility in supply chains than normal. Agility is an absolute
requirement, while maintaining operational excellence.
Global Trade and Risk Management: Automating global trade processes will
help high-tech companies enhance supply chain performance. Furthermore,
effective global trade and risk management must address margin protection, brand
integrity, and customer satisfaction.
Sustainability: Companies are fighting to be environmentally friendly and
keep the costs of recycling, de-manufacturing and scrap at a minimum.
Tax-Effective Supply Chain Management: The process of integrating tax
planning into the overall management of the company’s supply chain.
On-line Digital Content to Drive Product Innovation, Acceptance and Obsolescence: How high-tech companies respond and innovate will determine what
audiences embrace or reject.
Inventory Working Capital/Sales Optimization Planning: With demand
returning, the “people, processes and technology” of Sales, Inventory & Operations Planning must be brought to a new level to enhance inventory turns
while improving customer service.
With these top priorities in 2011, high-tech companies have their work cut out
for them. High-tech companies will need to ensure that each of these areas are
included in their continuous improvement strategies.