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Accenture on Consumer Electronics
Accenture’s global managing partner of supply chain strategy, Greg Cudahy, is quoted in MMH as stating:
“Different products call for different supply chains. For commodities, the only selling point is low cost. You want to be able to fill orders at the lowest possible cost,” says Cudahy. Other products, like consumer electronics or trend-setting fashions, have a life cycle that’s so short that the time available to get maximum price is measured in weeks. “There, you need a supply chain that can get the product to market as fast as possible.” Too many companies try to run one supply chain to handle both products. “You end up paying too much to ship the low cost items and you’re not fast enough to ship the fast-moving items,” says Cudahy. The best companies set up a network of warehouses, with different purposes, or multiple processes in one facility to meet different needs.