Design for-supply principles

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By Madeleine Lee

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Adaption of the fittest.
o The know-how of global supplier management.
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2.
Ability to spot trend
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

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Three principles for the Design-For-Supply
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Commonality – products share components
Postponement – delays the step at which products become
different.
Standardization – use of catalogue items
Source: the triple-A supply chain by Dr. Hau L. Lee