Rewrite Case Study
Please rewrite case study answers in your own words and add 4 different sources in APA (2017-2022) format with Doi format and 1 biblical source... only keepSimchi-Levi, D., Kaminsky, P., & Simchi-Levi, E. (2021). as a source:
Solectron was founded in 1977 with an initial focus on making solar energy
equipment (Simchi-Levi et al., 2021). They started as a contract manufacturer and developed into a global supply chain integrator manufactured for original equipment manufacturers (OEMs). The company grew its focus using quality and culture and became the leading company in electronics manufacturing services (EMS) in the late 1970s. They used the specifications for improvement of the Malcolm Baldridge National Quality Award as a template for continual success in quality and culture; that led to the company winning the award twice, which was unprecedented. However, their key issues were uncertainty in
the business environment, dependency on top customers, lack of risk evaluation and management, increased volatility of customer demand, and the complexity of managing the global supply chain. Solectron’s success led to growth globally, in more than 20 countries, serving customers in communications, networking, computing and storage, consumer products, automotive, medical, and industrial markets (key companies - Ericsson, Cisco, Compad, HP & IBM). With the rapid growth in the EMS industry, by the mid-1990s, Solectron became the dominant company (Simchi-Levi et al., 2021). Also, in the 1990s, Solectron enacted a
new business model based on acquisition and growth in size and service range
implementing the Global Materials Services: Technology Solutions (technology building blocks helping customers minimize time-to-market for new products), Global Manufacturing (provided design, new product introduction, and manufacturing and distribution services), and Global Services (provided repair, upgrade, and maintenance, logistics, return management, warehousing, and other port-manufacturing support services). Thus, creating a business unit that includes sourcing, procurement, and other common supply-based management resources.
1. How has Solectron’s Value to its customers evolved over time?
Customers engage in quality assurance behaviors to increase their satisfaction while recovering from service failures (Youngdahl & Kellogg, 1996). Dr. Koichi Nishimura approached the concept of quality assurance with the idea of never being satisfied, continually questioning existing practices, striving for continuous improvement, and acquisitions (enabled Solectron to gain long-term contracts from clients) (Simchi-Levi et al., 2021). Having the idea of “customer first” Solectron strengthened relationships and provided products and services of a more significant value through innovation. They also emphasized communication, associate dignity, equality, and individual growth strategies.
2. How has global expansion contributed to Solectron’s ability to move from a contract manufacturing supplier to a supply chain integrator?
Integration of supply chain is strategic and has operational importance as part of the core of business logistics, operations, and supply chain management (Fabbe-Costes et al., 2008). Partnerships supplying goods to customers make the work easier to maintain and shifts the focus to core competencies, allowing for separation of product and production lines to specific regions. Utilizing SCI also reduces the bullwhip effect and allows for early problem detection, lower cost, faster response times, improved service, improved capacity, asset utilization, and trust-building.
3. How has the company been able to successfully integrate its acquisitions?
Acquisitions factor in relational rents: relation-specific assets, knowledge-sharing routines, complementary resources/capabilities, and effective governance to analyze the likelihood of an organization’s candidacy (He et al., 2013). Regarding Solectron, a company (start-ups) had to show potential to grow before being acquired. Solectron developed an integration team (4-8 people) from major functional areas to create and implement an acquisition/integration plan that would oversee the process 3-6 months after being acquired. The team used a checklist to ensure alignment with the corporate culture of quality. Once this process was completed, the next step was to integrate the employees from the newly acquired company and trained by Solectron to ensure intelligence, know-how, and employee
experience required (Simchi-Levi et al., 2021).
4. What was the impact of the company’s culture on the success of the company, on the business downturn of 2001, and on its ability to respond to the business downturn?
The impact of the company’s culture “lowest cost” can only be achieved with the
“highest quality standards” using superior customer service and respect for the individual led to early and continual success for the company. The downturn of 2001 (declining demand) led to overcapacity and excess supply, at which Solectron was forced to return excess materials to customers (OEM) (Simchi-Levi et al., 2021). By decreasing inventory, recycling the Just In Time
(JIT) practices to reduce the risk of future excess materials, reducing employees, and facility closures, Solectron was able to sustain their reputation as a supply chain integrator, which allowed them to enter into the Asian market.
5. What additional products and services should Solectron provide to its customers in the future?
Based on the information provided, Solectron could benefit from adding technology
solutions services for their customers and clients.
6. What should the company do in the short term? In the long term?
Solectron should, in the short term, continue to reduce cost and excess materials or inventory by returning the materials to OEM customers, continue using the JIT practice to safeguard production demands. The JIT philosophy advocates eliminating waste by simplifying production processes; ultimately leading to reduced setup time, control of material flow, and emphasis on preventative maintenance and effective resource utilization (Kannan et al., 2005). Solectron will also need to analyze and forecast demand for the Asian market and use joint forecasting with other OEM countries. For the long term, Solectron should use outsourcing as a strategy (OEM) to maintain continued acceleration globally.
Fabbe-Costes, N., Jahre, M., & Roussat, C. (2008). Towards a typology of the roles of logistics
service providers as 'supply chain integrators'. Supply Chain Forum, 9(2), 28-43.
He, Q., Ghobadian, A., & Gallear, D. (2013). Knowledge acquisition in supply chain
partnerships: The role of power. International Journal of Production Economics, 141(2),
Kannan, V. R., & Tan, K. C. (2005). Just in time, total quality management, and supply chain
management: Understanding their linkages and impact on business performance. Omega
(Oxford), 33(2), 153-162. https://doi.org/10.1016/j.omega.2004.03.012
Simchi-Levi, D., Kaminsky, P., & Simchi-Levi, E. (2021). Designing and managing the supply
chain: Concepts, strategies, and case studies. (Third edition.). New York, NY: Richard D.
Youngdahl, W. E., & Kellogg, D. L. (1997). The relationship between service customers' quality
assurance behaviors, satisfaction, and effort: A cost of quality perspective. Journal of
Operations Management, 15(1), 19-32. https://doi.org/10.1016/S0272-6963(96)00097-6