Devising supply chain strategies for a major semiconductor manufacturer
Synovate Business Consulting was approached by one of the world's largest chipmakers in 2006, to advise on whether it should offer supply chain services to better meet the needs of its key Original Equipment Manufacturers (OEMs) in Asia.
Synovate first engaged with each of the OEMs to determine their procurement patterns, terms and conditions, vendor selection criteria, perceptions, and unmet logistical needs. We then mapped the locations, sales breakdown by geography, key accounts, supply chain capabilities, and strategic intent of our client's key competitors, to determine their likely capabilities of providing different value-added services. Finally we created a decision framework for our client that prioritised the specific services to be offered to each account, based on their customer lifetime value and inventory requirements.
Our client felt that our model supported an optimum balance between meeting customer needs and creating defensible competitive advantage, and yet helped them to maintain profitability, and implemented our recommendations to the delight of its key accounts. This helped the company to maintain its leadership till today.