| Since the launch of smart phone product,it has been developed and grown significantly in the market.There were a lot of smart phone manufacture emerged from the China market in the recent years.The majority of sale volume comes from the several giant ODM manufacturers in China.The relationship of coordination between the smart phone branded company and ODM manufacturer has a great impact on the competition advantage of branded company in the market.How does the branded company to be grown continuously from the next competition? The ability to shorten lead time of supply chain is one of the most important factors.With different reasons,the smart phone branded company in China has a long supply responsive lead time to the market for their products.The Lead time shorten is becoming one of important strategy for supply chain management of smart phone branded company and one of the important key performance indicator to measure their ODM manufacturer partner.Under the circumstances of smart phone product similar quality and configuration,the lead time to the market compression will be essential for the branded companies.1.Reduction of loss from product shortage.Due to tough competition for smart phone companies,they need to sell good products to their customers,but also need to sell it in a quick way.If their customers cannot get the products timely from the company,they will choose the alternative products from competitors,thus,deliver the smart phone products to the market earlier than their competitors,which will be helpful for branded company to guarantee the timely supply and reduction of loss from the product shortage.2.When the product quality and selling price is in the similar level with their competitors,if the smart phone branded company is able to deliver the products to the market earlier than their competitor,which will be helpful for branded company to obtain more market share and promote sales performance.Meanwhile,the boost of sales volume will stimulate the branded company to obtain the more right of speech and power of price negotiation through the whole supply chain.3.Improve the sales forecast accuracy.The lead time has direct impact to sales forecast accuracy,normally,the shorter time point to sales activities,the more precise in sales forecast can be made by companies for their products,on the contrary,the worse precise in sales forecast estimation.Furthermore,the LT also has big impact for safety inventory preparation and time of re-order point.Longer LT,and higher total inventory level in whole supply chain.4.Customers can be divided as loyalty and non-loyalty customer,the compression of lead time to the market will be helpful improve the satisfaction of non-loyalty customer,further to defeat the competitors.This article will take the case of L smart phone company and ODM manufacturer as example,explain the current situation of lead time of L smart phone company,and analyze the causes in details from the aspect of both L smart phone company and ODM manufacturer.By means of the supply chain theory and literature research result,study strategy of the lead time compression for smart phone branded company,and propose the improvement plans in terms of information sharing,inventory management strategy,manufacturing process optimization etc.At last,the author provide the actual data to verify the validity of improvement plan,and given a certain suggestions for other smart phone branded companies in terms of compression of lead time. |
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