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| Thought Paper |
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Supply Chain Solutions for High-Tech
Industry: Need vs. Reality |
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| Abstract |
Supply Chain is a strategic business area for most organizations in any industry. This is
more so in case of the high-tech industry, which pioneered the use of distributed
manufacturing, around-sourcing and third party logistics. The characteristics of high-tech
industry such as high uncertainty in demand and supply, has rendered the traditional
supply chain model under-optimized. In addition, the growing trends of consumer
orientation and focus on competitive advantage, coupled with a renewed stress on cost
and productivity have led the way to many innovations. Technology has also advanced to
support these new paradigms. Supply chain solutions, like SAP SCM, along with
improvised ERP systems have helped organizations to improve supply chain efficiencies
to a large extent. However, these applications are still 'generic' in nature and most
customer organizations find it difficult to fine-tune the application to their unique supply
chain challenges. The result is either extensive customized packaged solutions or homemade
bespoke supply chain solutions with messy interfaces with packaged solutions. This
paper summarizes the business requirements and challenges of supply chains in the Hitech
industry and suggests the approach global manufacturers must adopt to create highly
agile and productive supply chains.
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