Summary
Operational models of global supply chains consist primarily of the business model (OEM/ODM) and the process model (BTF/BTO/CTO). This study aims to understand the specific characteristics within different operational models used by to firm to achieve operational targets. An empirical study was conducted in Taiwan to identify the key factors used by managers in analyzing such supply chain models. Data were collected by means of in-depth interviews with 36 senior managers in 12 notebook computer firms in Taiwan. In the interviews managers used the four dimensions of 'supply chain targets, 'supply chain management efficiency', "strategic alliances' and 'logistics facility locations' and 64 initial factors to analyse and compare each of six main operational models, and thus to help them decide whether or not they should use the model in their attempts to achieve their various targets. The Grey Relation Analysis (GRA) method was used to identify the key factors in the global supply chain models upon which the mangers decisions were based. The results suggest that different factors were identified and used to analyse different operational models and to serve as reference points in making decisions about practical global operations. The results suggest that 'hidden knowledge' of the cooperative relationship between manufacturers and multinational brand companies plays an important role in the analysis and that it can be systematically described. A number of managerial implications are developed from the results, which could be helpful to further strategic analysis.
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Extract
Key Factors Used by Manufacturers to Analyse Supply-Chain Operational Models: An Empirical Study Among Notebook Computer Firms
1. Introduction
Innovative global supply chain management operations are critical for modern enterprises aspiring to work in multinational business activities. In the face of globalization, managers of transnational companies need to understand the key characteristics within the existing operational models. Such understanding will equip them to make effective managerial decisions regarding global operations and accommodate themselves to the dynamically changing business environment.Excellent process control in manufacturing and product quality is the most important competitive advantages for Taiwanese firms in the global notebook-computer market. These characteristics have driven the continue growth of Taiwanese notebook firms and helped them achieve a 74.7% global market share through cooperation with major international brands such as HPQ, Dell, IBM, Fujitsu, NEC, Sony, Acer, Apple, and Gateway which together have a combined market share of 80%. OEM/ODM (OEM is an abbreviation of "Original Equipment Manufacturing" and ODM is an abbreviation of "Original Design Manufacturing") are the main business models in Taiwan and together account for 94% of domestic production volume. Table 1 shows the global market share of Taiwanese notebook-computer manufacturers. Such manufacturers play an important role in supporting multinational brands in their glob...See the full content of this document
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