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Case from journal
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Reference no. NAC2231
Published by: NACRA - North American Case Research Association
Published in: "The Case Research Journal", 2003
Length: 12 pages
Data source: Field research

Abstract

TTI, a limited line, specialty distributor of electronic passive components and connectors was experiencing a rapidly changing market in 1996. Supply chain management (SCM) and its related programs were causing a revolution in electronics distribution. Distributors were being asked to deliver more services related to inventory management and other value-added processing of products. A major issue was the globalization of the industry. As large customers opened facilities around the world, TTI had to decide whether to follow or risk losing customers to suppliers with a local presence. If TTI could not serve a customer at its new locations, it risked losing the entire account. TTI provided a complete vendor managed relationship for major customers. This threat was particularly severe in the then SCM environment since customers were seeking strategic alliances with companies having the ability to serve their needs anywhere in the world. The environment in the electronics field was one where shorter product life cycles were putting increasing pressure on companies to focus on their core competencies. Many firms were deciding to outsource non-strategic functions like purchasing and some value-added processes. TTI was determined to find a solution that improved customer service and at the same time stay profitable.

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Abstract

TTI, a limited line, specialty distributor of electronic passive components and connectors was experiencing a rapidly changing market in 1996. Supply chain management (SCM) and its related programs were causing a revolution in electronics distribution. Distributors were being asked to deliver more services related to inventory management and other value-added processing of products. A major issue was the globalization of the industry. As large customers opened facilities around the world, TTI had to decide whether to follow or risk losing customers to suppliers with a local presence. If TTI could not serve a customer at its new locations, it risked losing the entire account. TTI provided a complete vendor managed relationship for major customers. This threat was particularly severe in the then SCM environment since customers were seeking strategic alliances with companies having the ability to serve their needs anywhere in the world. The environment in the electronics field was one where shorter product life cycles were putting increasing pressure on companies to focus on their core competencies. Many firms were deciding to outsource non-strategic functions like purchasing and some value-added processes. TTI was determined to find a solution that improved customer service and at the same time stay profitable.

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