By Madeleine Lee

Adaption of the fittest.

o The know-how of global supplier management.

1. Ability to spot trend

2. Capability to change supply networks

o Example 1: Microsoft Xbox beat Sony PS2

• Short term – KSF is time to market, Xbox supplier Flextronics decides to

manufacture Xbox in Hungry and Mexico, they are near the target

market, NAM and Europe.

• Long term – the KSF is cost effectiveness, hence, Flextronics move the

manufacture to China.

o Example 2 : Cisco’s supplier policy

Standard, mass

production

Commissioning contract manufactures

Mid-value items Commissioning contract manufactures

customize Near-shore supplier

Three principles for the Design-For-Supply

1. Commonality – products share components

2. Postponement – delays the step at which products become

different.

3. Standardization – use of catalogue items

Source: the triple-A supply chain by Dr. Hau L. Lee