1、Approach to Lower Inventory,Simon Chang May 29, 2001,What drive the F.G. inventory policy?,The worldwide supply vs. demand environment The agreement signed with the customer The distance from manufacturing site to the sales market The product value The logistics model,What effect the F.G. inventory,

2、The precision of the customers forecast The competition among the competitors The manufacturing capacity and flexibility The logistics capacity and flexibility The order/MPS process procedure The supply chain management capability The import/export handling capability,How does Apple handle the F.G.

3、inventory?,The strict 13 weeks forecast drive the OEM production The special operation team watch the OEM plant activities very closely To control the whole F.G. pipeline movement from ex-factory to ex-hub Pay the OEM partner F.G. inventory cost in time Do not ask for F.G. buffer stock,How does Comp

4、aq handle the F.G. inventory?,The long term forecast direct the OEM partner market trend Request for buffer stock to cover the market various ness Pre-alert sent to OEM partner for approaching EOL Site transfer to balance world wide inventory,How does Dell handle the F.G. inventory?,The precise 18 w

5、eekly forecast stabilize the OEM partners production The multi-vendor supplies to cover the demand change The direct Ship and BTO business model reduce the uncertain effects distorting the manufacturing activity,Where is Foxconn?,Foxconn is an OEM partner of these top level computer makers Foxconn p

6、rovides the customers one-shop service Our strategy is One site developing Three sites manufacturing World wide delivering,What does create the higher inventory?,Slow-reaction to the market change Poor internal/ external communication Less share of usable information Non-linked supply chain/logistics The inadvisable procedure Too many particular components or parts,Approach to lower inventory,Watch the market trend closely Integrate the whole supply chain/logistics Build up an integrable work net Speed up the information flow