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Value challenges in supply chain management

Value challenges in supply chain management In response to on‐going global business pressure, the supply chain management of Motorola Semiconductors Hong Kong Limited has imposed a “value challenge” programme to bring in excellence from outside suppliers to increase a purchase’s contribution. Through the changes of supply chain management philosophy together with additional participation of suppliers, the original practice of trimming profit margins at the supplier side to increase the value of a purchase has now been replaced by the collaborative effect to add value in its downstream supply chain activities. Based on such a value improvement initiative, a three‐layer value challenge practice has been developed. Through the use of such a technique, the company has been able to attain over 20 per cent unit cost reduction per pin count. This is equivalent to a US$30 million saving in over two years. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Logistics Information Management Emerald Publishing

Value challenges in supply chain management

Logistics Information Management , Volume 13 (3): 6 – Jun 1, 2000

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References (12)

Publisher
Emerald Publishing
Copyright
Copyright © 2000 MCB UP Ltd. All rights reserved.
ISSN
0957-6053
DOI
10.1108/09576050010326547
Publisher site
See Article on Publisher Site

Abstract

In response to on‐going global business pressure, the supply chain management of Motorola Semiconductors Hong Kong Limited has imposed a “value challenge” programme to bring in excellence from outside suppliers to increase a purchase’s contribution. Through the changes of supply chain management philosophy together with additional participation of suppliers, the original practice of trimming profit margins at the supplier side to increase the value of a purchase has now been replaced by the collaborative effect to add value in its downstream supply chain activities. Based on such a value improvement initiative, a three‐layer value challenge practice has been developed. Through the use of such a technique, the company has been able to attain over 20 per cent unit cost reduction per pin count. This is equivalent to a US$30 million saving in over two years.

Journal

Logistics Information ManagementEmerald Publishing

Published: Jun 1, 2000

Keywords: Supply‐chain management; Value analysis; Suppliers

There are no references for this article.