CASE: GS-49 DATE 04/14/06 EVOLUTION OF THE XBOX SUPPLY CHAIN With the first generation of Xbox‚ our ambition was to change the way people think about video games. Starting today with Xbox 360‚ our ambition is to transform the way people play games and have fun. 1 —Robbie Bach‚ President of the Microsoft Entertainment and Devices Division In November 2005‚ Microsoft prepared to launch its next-generation video game console‚ the Xbox 360. A global release was scheduled‚ beginning on November
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What information does Flextronics have that its clients do not? Why? How can Flextronics leverage? Flextronics is one of the worlds largest EMS companies‚ with 12 billion in revenues‚ had an on usually good vantage point of the inventory surplus. The Singapore – based company makes everything from printed circuit boards to cell phones for a variety of high-tech clients‚ including Cisco‚ Lucent‚ Nortel‚ and Ericsson.” The telecom guys thought‚ ‘We can do no wrong‚” says Dan Pleshko‚ vice president
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fiscal 2003‚ which ended in December. Hon Hai’s control of expenses is as obsessive as its control of data‚ something Lehman expert Emily Chang acknowledged on a visit to EMS offices in China a year ago. The "pleasant lodging and workplaces" of Flextronics’ expats stood out pointedly from the housing of Hon Hai’s directors. "Indeed‚ even the nearby administrator’s workplaces had uncovered solid floors‚" she says. "This organization is truly thrifty." Hon Hai can depend on the 30 percent and higher
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Global Supply Chain Design Evolution of the Xbox Supply Chain Management Summary Contents Evolution of the Xbox Supply Chain 1 - Introduction It was in 1999 when the initial proposal to Bill Gates was made to create a game console. Long before the legitimization of this project‚ Microsoft was not only encouraged by the gamer’s scene to enter this market‚ but the main driver was to secure shares in the console market
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The Great Inventory Correction Cole Stripling ------------------------------------------------- November 8‚ 2012 ------------------------------------------------- Summary Flood of the century or not‚ tech companies are taking steps to limit their exposure to the next traumatic event. Some are revising their inventory models; others are implementing supply chain software and setting up Web supplier hubs. Everyone wants tighter collaboration with suppliers and timelier information from customers
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inventory GSCM – Group 3 3 Case summary II ALTERA • California-based chipmaker (Programmable Logic Devices) • Supply to a giant Taiwanese company • Chute in revenue due to declining customer demand • Write-down 115 mio. worth of inventory FLEXTRONICS • One of world’s largest EMS (electronics manufacturing services) • Makes everything : from printed circuit boards to cell phone • Customers: Cisco‚ Lucent‚ Ericsson • Inventory growth 2000: from 470 mio. to 1.7 bil. dollars IBM • Giant‚ diversified
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References: 1. Appendix 1 data chart‚ BLS: http://www.bls.gov/opub/ted/2007/jan/wk1/art03.htm 2. Thor Olavsrud‚ " Flextronics Relocates Xbox Manufacturing Facility‚" Business Internet‚ May 15‚ 2002‚ http://www.internetnews.com/bus-news/article.php/1129171 3. Ryan A.‚ "Games outsourcing in China grows rapidly‚" MMORPG‚ January 22‚ 2007‚ http://www.qj.net/Games-outsourcing-in-China-grows-rapidly/pg/49/aid/80223
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of well-known computer technology corporations like IBM and ATI technologies. In order to reduce costs‚ both ATI and IBM agreed to let Microsoft own the designs of the chips which allows them to produce the chips anywhere. EMS companies like Flextronics and Wistron were partners ever since the first Xbox. A new relationship between Celestica and Microsoft was formed later in the Xbox 360 to assist production and handle the incremental volume and supply to other untapped markets. All three plants
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the first changes was adding a third EMS supplier‚ Celestica‚ in addition to Flextronics and Wistron. Celestica was added to increase capacity and meet predicted demand which was expected to be much higher for the Xbox 360 than it had been for the original Xbox. Also‚ in addition to Microsoft’s current engineering team‚ they attempted to further integrate their supply chain by working closely with employees from Flextronics and Wistron during the design process to optimize production of the Xbox 360
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too in involved the process. Those who dont really care about how special or adapted the product is. 4- Flextronics manufactures equipments for many clients so it has opportunity to see the aggregated demand and supply that they are producing. This information in regards to demand and supply can benefit both its suppliers for VMI inventory and clients for its requirements. Flextronics is very good at manufacturing equipments. They got to where they are by using the information that benefits everyone
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