Global Sourcing, i2 Articles

Strenghthening The Supply Chain, an i2 White Paper (44KB)

Large wireless communications manufacturers and their equally large telecommunications carrier customers provide an excellent case study in how the supply chain becomes compromised across multiple divisions. The
manufacturers operate business units that produce equipment spanning the wireless network — everything from mobile phones to base stations to switches to antennas. The carriers also have a multitude of divisions ranging from regional diversity, network build-out, operations and maintenance as well as retail outlets.

Conventional wisdom would dictate that a carrier could place one huge purchase order covering all its equipment needs and receive special dispensation in terms of volume discounts and reduced shipping charges. Conventional wisdom would be wrong.

In today’s supply chain IT system, numerous purchase orders must be issued by the carrier to the individual divisions of the manufacturer, resulting in multiple order fulfillment documents, invoices and bills of lading. Add to that the variables affecting inventory levels of the manufacturer and the potential for mass inefficiency rules the day.

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