alpha electronics presentation

8/3/2019 Alpha Electronics Presentation

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A D V A N C E D S U P P L Y C H A I N M A N A G E M E N T

P R E S E N T E D B Y :

A M I T J A I N

A N I R U D D H A B H A T T A C H A R Y AA N U S H R E E K H A N D A L K A R

A R N A B K U M A R R O Y ( 0 1 )

A U M K A R W A Y K E R

Case Study: Alpha Electronics

Global Strategy


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SWOT Analysis

Strengths:

Being the most successful consumer electronicsfirms, it has a strong brand name & is well

established.The customers base of Alpha is also very wide.

Executives are passionate & open to try new things.

Learning tours to build competency and apply theglobal learning knowledge to strengthen its supply

chain.

Employee training for quality enhancement.


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Weaknesses:

Low employee training, motivation & morale.

Overall quality of its products, and business practices

is very low.Their products seem to have high numbers ofdefects.


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Opportunities:

Learn from the Japanese firms.

Improvements in products, in terms of better quality.

Introducing brands in new markets withimprovements and innovations.

Threats:Japanese firms have flooded the market with low-prices high quality products.


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How Alpha Electronics might havearrived at its current strategy

Pressure to be responsive and cost-effective due tothe entry of Japanese firms forced Alpha Electronicsto makeover.

Increased availibility of new product at cheaper price& of high quality motivated Alpha Electronics tofocus on quality.

The changing market forces towards high speed,

flexibility, reliability , rising expectation of end-users, retailers made Alpha Electronics to revamptheir business strategy.


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Similar Indian firms: M&M

Mahindra Top Gear Programme: Aim to boostproductivity by 50% in a year.

Six principles followed by M&M are:

Build Product UnitsCreate Cellular Systems

Deploy Flexible Processes

Try to Cut Cycle TimesCustomize Your Shop Floors

Let Your Workers Own the Factory


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PrimaryBusiness Strategy

Principal Business strategy Global expansion ofthe firm

Reducing costs

Leveraging competitive advantage throughdiversification of Business

Evolving through procurement and sourcing indomestic markets followed by cross - borderprocurement

Launching newer products


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Supply Chain - Business Strategy Fit

Emphasis on low costs and quality products

Procurement from strategic locations where cost is lowand consumerism high Asia, Africa

Sourcing from multiple locations, not only from Japanto mitigate risks

Developing an integrated supply chain co-ordinationand information sharing from design to delivery

Outsourcing to contract manufacturers/EMS Leverage their economies of scale


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Implications for the SC strategy above

Overcoming Material Shortages

Regular Availability of critical components & parts

Procurement at low cost

Good relationship with suppliers and distributorswith a willingness to share information at every stage

Faster product development

Making design in house

Outsourcing Manufacturing - Lower costs, lesser

investment in fixed assets & inventories, concentrating

at core competencies


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Efficient vs. Responsive Supply chain

Efficient Supply Chain Responsive Supply Chain1. Main objective is of pursuing efficiency

goals w.r.t Supply chain operations

2. Predictable demand for theproduct - functional

3. Cost optimization &maximum utilization ofresources

4. Generate high turns andminimize inventory

5. Long term relationships withsuppliers and betterinformation sharing acrossthe supply chain needed

6. Standardized productionprocess with minimaldifferentiation

1. Need to develop capability to respondfaster to market requirements

2. Demand is uncertain for the product -innovative

3. Reducing time to market/lead time

4. Deploy significant bufferstocks

5. Capturing POS data and immediateupdating of the system using EDI and weblinkages necessary

6. Postponement ofdifferentiation


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Real Life Examples

Efficient Supply Chain Responsive Supply Chain

Toothpaste manufacturer - Colgate Fashion Apparel Nike, Zara

Steel Producer SAIL, TSL Personal computers - Dell

Oil Companies HP, BPCL Fast Food - McDonalds


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Measures To Evaluate

Success Of Strategy

Operational

Financial

RnD


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Operational Measures

1. RFTR 4. Customer Complaints 2. No of Processes validated 5.Cost of quality failures 3. Quality awareness trainingQuality

1. Automation 2. Material Handling 3. Removal of Bottlenecks 4. Reduction in cycle time

Productivity 1. Time required to setup processes for new products 2. Capability to adjust processes according to changingvolumes

3. Allowing variations in process sequenceFlexibility

1. Time for NPD 2. Time required to source new raw material / parts from

supplier 3. Time to market for new products 4. plc time

Time


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Financial Measures

Total sales

Value added

ProfitMargin

Turnover ofcapital


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Measures To Evaluate R&D Department

Financial

Revenue growth

R & D spending

Percentage ofsales from newproducts

ROI Profit growth

Changes in

market share

Operational

Number of ideasor concepts in thepipeline

Number of Newproducts orservices launched

Number of R & Dprojects

Number of peopleactively devoted toinnovation

Others

Customersatisfaction

Potential of entirenew product /service portfolio


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SC strategy

Supply chain management - supply chain operationsare controlled to reduce costs

Supply chain strategy is an iterative process that

evaluates the cost benefit trade-offs of operationalcomponents.


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External Considerations For SCM Strategy

Customer Demand

Market structure

Customs clearances and duties

Vendor selection Terms of purchases in international markets

Performance of competitive firms

Cross border taxes

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