High Technology Industry
Overview
High technology businesses often define their value add in terms of their research and development capabilities while turning to others for the actual manufacturing. Such businesses have all the requirements of managing the entire product life cycle with the exception that actual production is handled by a contract manufacturer. These companies strive to maximize efficiency, both internally and externally within their supply chains, through better visibility and understanding of both customer and supplier partners. In addition, they have the imperative of extremely tight interaction with their chosen sub-contractors.
By definition, high technology businesses do not have the historical information bases often available to manufacturers of more traditional products. Often critical components have extremely long lead times and are also severely constrained by their vendors. Mistakes in forecasting critical components can lead to outages on one hand and obsolescence on the other. Either way, the financial consequences can be devastating for an organization.
Managing while utilizing a sub-contractor for manufacturing takes information on many fronts. The business is still responsible for authorizing purchasing, maintaining accurate product definition with change level control, and working with the capacities of the sub-contractor’s manufacturing sites. All this must be carefully synchronized with the demand coming from the customer side of the supply chain. Sales are often handled by a combination of a direct sales force, certified OEM’s, Value Added Resellers (VAR’s), and manufacturer’s representative. Accumulating information on customer opportunities and converting that data into a forecast is challenging.
Consistent information, as found in a solid ERP backbone, is critical to all high technology businesses that utilize sub-contact manufacturing. Beyond that consistent information, it is critical to implement and manage flexible business processes that meet the needs of an ever changing marketplace. Reaction time to supply chain events can often determine whether the sub-contractor is building the right product at the right time.
Key Business Drivers
- Forecasting
- Planning at the component level for availability and obsolescence
- Product definition management
- Master productions scheduling
- Sales force management
- Supply chain management
- Collaborative planning
- Technical support and service
Our Experience
Logan Consulting has tremendous experience working with high technology companies that utilize subcontract manufacturers. Our ability to execute projects quickly and successfully, and our dedication to implementing business, manufacturing and project standards, make us an ideal partner for companies that utilize subcontract manufacturers. This same range of experience also makes Logan Consulting an ideal partner for companies that are engaged in being the source manufacturer for others.
Specific Clients: