Research On Supply Chain Optimization For Sanmina(Kunshan)Company

The concept and managing model of SCM has been developing into one of the most important way for enterprise to improve their global competitiveness.The market competition of 21 centuries is the competition in SCM,Traditional high-volume,low cost model has been replaced by the superiority of SCM,and the efficiency of SCM has become the key element of enterprise competitiveness.Global economy has been developing rapidly,accelerated technological upgrading,shorter cycle of R&D and production,and the increasing of specialized cooperation and outsourcing project have become into the new feature of electronic manufacturing industry.The integration of world economy development has brought huge opportunities for enterprises,but also accompanied with lot of challenges.The competition between enterprises is getting intense;it's no longer on certain product only,but a competition in all-respect,including creation ability,SCM,cost control and so on.With the increase of labor cost and the improvement of market transparency,the pressure of cost competitiveness is getting bigger as well.In spite of the global economic downturn,international customer demands shrink and other factors,SANMINA is facing issue on cost,inventory,lead time etc.This paper first uses the SWOT analysis method to describe the advantages,disadvantages,opportunities and threats of the supply chain management of Sanmina Electronics Company,followed by the analysis of the current situation from three macroscopic aspects of supply chain management.As a Fortune 500 company,Sanmina Electronics plays an important role in the EMS industry.However,its supply chain management is not perfect and there are areas for improvement.The problems range from the long inventory backlog caused by large order quantity,the lack of slow-moving stock sharing platform,the singleness of order handling mode for the main components,the high transportation cost,to the inefficientcommunication between factory and customers.By utilizing Local Optimization Solution of Supply Chain Management Optimization theory,this paper proposes optimization solutions to improve part of the supply chain nodes,based on the design,opportunities and operation of Sanmina Electronics supply chain management.The solutions include authorizing supplier access to Sanmina Slow-moving component platform,modifying set up of Minimum Order Quantity(MOQ)in ERP,deciding MOQ or non-MOQ on project basis,establishing strategic partnership with main suppliers,introducing order management for supplier inventory,optimizing means and frequency of transportation,combining shipments,improving professional knowledge as well as negotiation skills of buyers,and enhancing communication between Project Team and Customers.Through implementation of these optimization solutions,the residue inventory and cost will be reduced,the supply chain response and surplus will be improved,and the core competitiveness of company will be improved.Therefore,more opportunities will be achieved by Sanmina.