Supply Chain Management and Unexpected Market Conditions

Topics: Supply chain management, Supply chain management terms, Inventory Pages: 2 (416 words) Published: July 7, 2012
1- Altera modified its strategy to a build to order one. This increased the led time so the company can be protected from unexpected market conditions as the technological industry is evolving too fast. Moreover this new strategy will help them avoiding past mistakes.

2- According to the success of Dell company which adopted a make to order concept as a pillar of its supply chain management, this strategy can be successful. The advantages of this strategy are decreasing risks as they have more time to adapt to the market and increasing profits. The disadvantage is that they will have longer lead times, which is not good to retain clients. In addition, customer will have to fully commit in order to purchase.

3- Most of their customers might flee because of the lead times adjustment which can be measured in months and not weeks anymore. However, this new strategy can bring new customers more faithful as they will have to commit and work together in some way. The result will be more satisfaction for both as the client will have exactly what he desired and Altera will have more control on the supply chain and overall on demand. On the other hand, some customers might not appreciate being too in involved the process. Those who dont really care about how special or adapted the product is.

4- Flextronics manufactures equipments for many clients so it has opportunity to see the aggregated demand and supply that they are producing. This information in regards to demand and supply can benefit both its suppliers for VMI inventory and clients for its requirements. Flextronics is very good at manufacturing equipments. They got to where they are by using the information that benefits everyone including its clients, supplier and partner.

5- IBM manages its suppliers in order to make its pull strategy more effective by producing forecast that goes out 90 days out. This forecast is updated on weekly basis and made available to all its suppliers which allow them to...
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