Subject category:
Production and Operations Management
Published by:
Stanford Business School
Version: 30 January 2007
Length: 18 pages
Data source: Field research
Abstract
In 1995, Lucent Technologies' supply chain in Asia had many problems: long lead times, high cost, poor reliability, high inventories, and poor technical support of customers and local Asian operations. This was, in many ways, a result of the historical supply of Asia from the United States. Local Asian facilities had been established as market entry vehicle and provided some high level assembly and test, but the supply chain was organized around US production and support. A substantial supply chain redesign was completed in 1996, providing more Asian content. This was very successful. However, continuing changes in the marketplace, suppliers, and the manufacturing environment suggested that the supply chain was no longer optimal.
About
Abstract
In 1995, Lucent Technologies' supply chain in Asia had many problems: long lead times, high cost, poor reliability, high inventories, and poor technical support of customers and local Asian operations. This was, in many ways, a result of the historical supply of Asia from the United States. Local Asian facilities had been established as market entry vehicle and provided some high level assembly and test, but the supply chain was organized around US production and support. A substantial supply chain redesign was completed in 1996, providing more Asian content. This was very successful. However, continuing changes in the marketplace, suppliers, and the manufacturing environment suggested that the supply chain was no longer optimal.