How has Solectron ‘s value to its customers evolved over time?
Solectron’s value to its clients has evolved over time through the acquisition of client manufacturing facilities that has enabled the firm to gain long-term contracts from clients. The electronic business has contributed to the success of their implemented strategy of attaining increased resource utilization. The firm focuses on management techniques that sought to avert the development of challenges. The firm has added more clients and taken business from existing clients. Thus, Solectron is stronger than their customers in negotiating with suppliers. Lastly, offering of clients with access to critical information through the web has enabled extranet meant to reduce the bull whip effect, i.e. from contract to global perspective.
How has global expansion contributed to Solectron’s ability to move from a contract manufacturing supplier to a supply chain integrator?
Global expansion is the aspect of implementing business from a global point of view. Initiating business globally entails more investors, more clients, new expertise and more profits. Global expansion has enabled Solectron to implement global strategies and expertise that has led to its ability to assist customers from an international perspective. Global expansion has contributed positively towards the firm’s ability to move from a contract manufacturing supplier to a supply chain integrator based on new expertise and investment. Evolution from a contract manufacturing supplier to a supply chain integrator has been made possible through the introduction of customer supply chain management, supply base management and material fulfillment.
How has the company been able to successfully integrate its acquisitions?
Solectron has successfully integrated its acquisition through the incorporation of sourcing and order fulfillment. Sourcing entails the presence of supply base management, controlling total cost and creation of value partnership with suppliers. Significantly, outsoaring ensures that the firm is reliable, low prices and inventory reduction because of operating from a global perspective. Order fulfillment has helped Solectron effectively integrate its acquisition by focusing on plant management, configuration of commodities to customer orders and post-manufacturing support. The contents of order fulfillment entail maintaining low inventory and reduce the cost to customer.
What was the impact of the company’s culture on the success of the company, on the business downturn of 2001, and on its ability to respond to the business downturn?
The impact of the firm’s culture on the success of Solectron is consumers gained high level of access to the information. It is true because on the business of downturn, the strategy of keeping the client first and developing supplier partnership failed in 2001 due to the ingrained culture to be the best. So as to respond to the downturn, Solectron had to modify their culture in order to overcome the downturn as it pushed excess resources back to the OEM clients to decrease its inventory. Therefore, it created a high and new demand for the firm’s clients. The process also generated new chances of development and the contents of system integration for the company. Essentially, Solectron has acted as an individual’s centric organization with its culture of coming up with value through quality.
What additional products and services should Solectron provide to its customers in the future?
The firm needs to have access to warehouse demand information and be in the position to provide distributors pricing and information on particular component offered by suppliers.
Recovery and remarketing
6. What should the company do in the short term? In the long term?
In the short-term, Solectron ought to focus on realigning its business of evolving on the lines of a stable growth and agile supply chain to effectively succeed. Thus, the firm needs to focus on the contents of clearing order backlogs and getting rid of efficient just in time practices. When it comes to the long-term perspective, the company can aim at developing its service base in upcoming markets where dramatic expansion is expected with newly formed business strategies.