KULICKE & SOFFA INDUSTRIES, INC.: DESIGNING A SUPPLY CHAIN NETWORK

Topics: Supply and demand, Market economy, Free market Pages: 7 (2436 words) Published: February 1, 2014
1. What are the underlying forces that led to K&S’s desire to make changes to its current supply chain network? 


The underlying forces that led K&S’s need to make changes to its current supply chain network are because of the cheap labor. The geographical movement in the electronics manufacturing industry to Asia and other Pacific nations has implied that organizations have needed to update their inventory Network. With clients moving to Asia, and new markets opening up, numerous K&S contenders have as of recently put resources into new destinations. By examining figure 2 (semiconductor equipment spending by geographic region) it is obvious that the Asia-Pacific using on Semiconductor supplies is expanding year on year, and outpaced Europe's use marginally in the year 2000, and is relied upon to keep on developing throughout the following couple of years. With the end goal K&S should keep on holding its overwhelming position in the business it must research conceivable chances and guarantee that their inventory network is dexterous enough to have the ability to meet client prerequisites in this developing business sector. To support their present business sector fortress, it is vital that K&S look at their present supply chain. With the geographical shift in the market comes expanded pressure from competitors. Some Semiconductor firms have recently initiated movement and have moved, with new plants being implicit in Singapore, Taiwan, the Philippines and South Korea. This permits them to be closer to their customers and increases the firm’s purchasing power by exploiting cheap labor, decreased working expenses, charge taxes and raw material expenses subsequently gaining competitive advantage. Despite the fact that K&S have a good market position, rivalry inside their essential business sector is intense. Variables, for example, performance, quality, customer support, cost and delivery all impact the way of K&S's multicounty competitive cooperation. For K&S particularly in this industry changes and innovations are very common and happen often, in order to maintain competitiveness K&S should change their current supply chain network

2. What factors should K&S take into account in each decision to redesign its supply chain network? 


Economic factors:
These elements can incorporate Economic development, tax changes, inflation and exchange rates. K&S must be particularly aware of variables, for example, inflation and economic development. With prospected territories of development including China, K&S should carefully monitor these areas as it may influence any future investments. Currently the Chinese government are taking an involved methodology of how their economy is improving and are inviting outside speculation with offers incorporating assessment motivating forces which obviously make it an alluring area for numerous firms. And in spite of the fact that there are other underlying components that make China an alluring alternative, K&S must be attentive to the numerous monetary variables in each area that could possibly influence there development. •Political factors:

This alludes to government strategy and what impact it has on the economy. It additionally affects on what products and administrations they wish to furnish. Such political choices could have tremendous suggestions on numerous ranges of the business from the workforce training to the nature of the framework. It is imperative that K&s can distinguish these conceivable suggestions and element them in where vital when settling on their choice. Case in point despite the fact that Jordan may have a moderately shabby introductory venture cost and be spotted shut the Israeli plant, it does have questionable conciliatory relationships and that can utmost K&S's operations. •Environmental factors:

Environmental factors include the climate, climate change and biological issues, for example, global warming. K&S must...
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