Marconi Implements New Supply-Chain Model; 3,000 Employees Affected

Compiled ByDeborah Austin Global communications and IT company Marconi Communications is speeding up implementation of a new supply-chain strategy that will increase outsourced manufacture of its communications equipment -- and has started discussions with contract manufacturers. It intends to transfer as many as 2,900 employees to outsourcing partners. Aim of the new strategy: Focus expertise and capital on processes that help Marconi differentiate itself from competitors. By outsourcing the bulk of manufacturing, Marconi plans to get more supply flexibility at competitive rates. This, combined with planned new final product assembly configuration centers in the U.S. and Europe, is intended to boost manufacturing flexibility and release capital for further growth. Pittsburgh-based Marconi is a division of Marconi PLC, a US$8.2 million company based in London.