ASSIGNMENT 1

Assignment 1



Assignment 1

Question 1: Explain with example how global supply chain for electronics work.

The industries of electronics and telecommunications today are highly technical, highly regulated and highly competitive. To stay abreast of market and technology landscape, regulations are rapidly changing. Therefore, under global business development, electronic firms cannot rely on a single source of integrated information and perspectives on the risks and market opportunities (Coyle, 2008). Additionally, new regulations are introduced and modified on electronic industry standards with respect to technological advances and best practices of engineering and procurement. IHS provides a comprehensive suite of information, knowledge, tools and services to make informed decisions.

The increasing competitiveness in the international context is now a common goal for both companies in designing their marketing strategies, and for governments in designing the policies for economic growth due to globalization. This phenomenon can be seen clearly in the electronic manufacturing industry. The five most dynamic principles of global supply chain for electronic work on the common feature of availability of resource. Availability of resources and technological skills is a key component in the electronic firms supply chain (Jespersen, 2005). This constitutes the purpose for joint alliances that are accompanied by increasing international competition. For example, Sony and Ericsson have established a common platform to manage the resource availability for the production of mobiles (Chopra, 2009). Sony Ericsson has jointly established a production plant in China due to low manufacturing cost; however, product development and designing is made in the R&D centers located in Japan and Malaysia.

Sustainable electronic firms continue to lead the production of electronic products. However, the constant pursuit of increased competitive power through lower costs and tax incentives has started the exodus of firms in electronics industry. Migration process by electronics firms shows that developed countries have most affected due to global partnership between major electronic firms (Wisner, 2008). In contrast, emerging economies have stagnated in this sector that includes Argentina, Brazil, Spain and Mexico. South Asian economies tend to be the new destinations of global supply chain investments for electronics firms.

Question 2: Explain with example the concept of “flexibility” as a competition strategy

The supply chain demonstrates the importance of global trade networks. Cities are linked in the chains of commerce, manufacturing, and distribution. The concept of flexibility plays an important role in the competition strategy. In this issue, materials management has become a key area within the companies. Zero inventory and just in time concepts are the key to success of large companies (Li, 2007).

In response, several strategies have been designed to improve materials management and contribute to increased competitive businesses. One such model is the "In-plant Store" (IPS), in which a dealer is responsible for planning, import and supplying the required components to the production line directly. Under flexible supply chain system, supply depends solely on the production requirements and customer's forecast (Levi, 2004).  The normal process of purchasing materials based on the material resources planning add variability to demand, costing and inventory risk associated with the ...