To read the full version of this content please select one of the options below:

Value challenges in supply chain management

W.K. Poon (W.K. Poon is Director of Supply Management & Group Planning, Asia Pacific Supply Management Operations, Mortorola Semiconductor Products Sector Hong Kong Ltd, Hong Kong.)
K.H. Lau (K.H. Lau is a Lecturer in the Department of Manufacturing Engineering, The Hong Kong Polytechnic University, Kowloon, Hong Kong.)

Logistics Information Management

ISSN: 0957-6053

Publication date: 1 June 2000

Abstract

In response to on‐going global business pressure, the supply chain management of Motorola Semiconductors Hong Kong Limited has imposed a “value challenge” programme to bring in excellence from outside suppliers to increase a purchase’s contribution. Through the changes of supply chain management philosophy together with additional participation of suppliers, the original practice of trimming profit margins at the supplier side to increase the value of a purchase has now been replaced by the collaborative effect to add value in its downstream supply chain activities. Based on such a value improvement initiative, a three‐layer value challenge practice has been developed. Through the use of such a technique, the company has been able to attain over 20 per cent unit cost reduction per pin count. This is equivalent to a US$30 million saving in over two years.

Keywords

Citation

Poon, W.K. and Lau, K.H. (2000), "Value challenges in supply chain management", Logistics Information Management, Vol. 13 No. 3, pp. 150-155. https://doi.org/10.1108/09576050010326547

Publisher

:

MCB UP Ltd

Copyright © 2000, MCB UP Limited