Dell and Cisco are breaking with tradition and putting in place information-sharing initiatives that reach deeper into the supply chain, executives said Thursday at the
Semiconductor Supply Chain Association symposium in Monterey, Calif.
Designed to ensure continuous supply, increase visibility, and meet demand for more accurate forecasting information, the two players -- both known for their aggressive supply-chain strategies -- are establishing programs that go beyond the typical dissemination of data to first-tier suppliers.
Instead, the companies are looking to send data directly to second- and third-tier vendors as a way to avoid supply-chain disruption, some of which appears to be happening beyond the companies' sight range.
In Dell's (stock: DELL) case, the computer giant last year began witnessing significant problems with its
microprocessor, memory, LCD, notebook, graphics supply, said Anna Belle Williams, senior manager of global procurement.
"In [fiscal 2000], we experienced disruptions in commodities that were 70 percent of our total purchases," Williams said. "The disruptions were not always at our tier one suppliers. We were seeing the disruptions at our second- and third-tier suppliers. We are looking for ways to systematically and proactively manage the disruption risk for tier one and selective tier two and three suppliers." |
