Manufacturing Industry
How to run a global supply chain: technology advances set stage for further disruption of ingrained management practices; electronics industry, Solectron are good examples.(Cover Story)
Manufacturing Business Technology, January, 2005 by Parker, Kevin
Technology makes globalization possible: it's computerization that caused the cost of enterprise transactions to drop like a rock, so companies can outsource even manufacturing. Given telecommunications advances, there's no reason why outsourcing can't be to India or China.
So today when IBM puts its PC business up for sale, it's reportedly selling a supply chain that for a $2,500 laptop gets its memory and display screen from South Korea; case, keyboard, and hard drive from Thailand; wireless card from Malaysia; graphics controller chip from Taiwan; and microprocessor from the United States. Assembly takes place in Mexico.
"You have specialization in the electronics industry because much of the work, beginning with design, can be modularized....
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