There are times when I wonder why companies have purchasing departments. Wouldn’t it be a great cost reduction to get rid of the overhead for this group and just let designers pick suppliers and set component pricing? A demand planner could interface with contract manufacturers that would keep costs competitive and take care of all […]
Turning Ordinary to Great Read More »
I have just figured out what my company does! It may sound strange that a CEO of seven years has this epiphany, but it’s true. Lytica Inc. makes knowledge power tools for supply management. Freebenchmarking.comwas our first tool and Component Cost Estimator is our second. Oh, and by the way, this is what we do
Is Your Company Reinventing Itself? Read More »
Out of capacity, lead times at 44 weeks, and price increases: Sounds familiar? Since my blog on volume vs. price last month, there’s been a continuing discussion of what sets the pricing of electronic components, starting with the question: “If not volume, then what?” I will share here some thoughts on component pricing, starting with
Putting the Volume-Price Myth to Rest Read More »
Now that the Consumer Electronics Show (CES) 2012 is over and the flurry of Freebenchmarking.com activity resulting from it is under control, I have had time to reflect on the various participants at the exhibition and the issue of vertical integration. I must confess to being most impressed by the Koreans and would give them
Vertical Integration Champions Read More »
Exactly what knowledge do market-leading companies gain from vertical integration? My thought process here considers a very high-level product design process. Though I will portray that process as linear and sequential, the reality is messier, iterative, and probably chaotic. For my purpose, the process starts with a market spec, which defines the customer experience (a
Knowledge From Vertical Integration Read More »
I am in the business of price benchmarking and cost reduction, but even so, I am amazed at what supply chain professionals have achieved. With specials and deals of all kinds during the holiday season, it is astounding the value that is being passed on to customers at very low prices in electronic products. Thirty-two-inch
The Virtues of Vertical Integration Read More »
As chief procurement officer for Nortel Networks Ltd. during the downturn in the optical business in 2000, I had to preside over the management of billions of dollars of excess material. This is not something I ever want to have to do again, and I am sure none of you want to do it, either.
Avoiding Inventory Overload Read More »
Corporate governance is a pretty dry subject in the best of times, but it just may become a bit more interesting, particularly if we have gotten it wrong and it turns out to be the source of the current worldwide economic crisis. The Occupy Wall Street protests clearly show the people’s frustration with high unemployment
An Inevitable Clash Read More »
Knowledge chains enable supply chain performance. They bring together the information and context that let you make decisions and take actions. Gaps in a supply chain are noticed and fixed immediately, but holes in a knowledge chain often go undetected. This is because supply chain gaps are usually catastrophic, but knowledge gaps are performance-limiting. How
Many Advantages of a Strong Knowledge Chain Read More »
To paraphrase Peter Drucker in his book, Post Capitalist Society, what Karl Marx envisioned has been achieved in America, and true capitalism is alive today in China. Marx wanted the wealth of companies to be in the hands of the workers. This has been achieved in the West through the holdings of pension funds. Capitalism,
The Post Capitalist Society Read More »
