Manufacturing Industry
Strategic sourcing computes at Palm and Sun.(Sun Microsystems Inc)(Palm)
Purchasing, April, 2006 by Teague, Paul E.
Paul E. Teague Supplier partnerships control costs and enable development of new technologies. One has products that fit in your pocket. The other's products sit on a desk or can take up a small room. But despite those differences, Palm's Treo Smartphones and Sun Microsystems' computers and servers are remarkably similar in the strategic sourcing that is behind their development.
Both companies consider the supply base a strategic asset and have developed strong partnerships with original design manufacturers (ODMs), joint design manufacturers (JDMs) and component suppliers. PALM: Virtually complete Three years ago, Sunnyvale, Calif.-based Palm was in survival mode and opted for a centralized purchasing model. Today, partly due...
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