Electronics Companies Running Into Trouble With Outsourcing

Nov. 22, 2005
Electronics companies are losing some control of the visibility across their supply chains and are therefore becoming vulnerable to risk according to a recent survey. The survey, "Regain Control to Manage Risk: Practices Must Catch up to Electronics ...

Electronics companies are losing some control of the visibility across their supply chains and are therefore becoming vulnerable to risk according to a recent survey.

The survey, "Regain Control to Manage Risk: Practices Must Catch up to Electronics Outsourced Model" was conducted by Industry Directions, Inc. in collaboration with the Electronics Supply Chain Association (ESCA). The survey included respondents from outsourcers (OEMs and fabless semiconductor companies) and providers (contractors, suppliers and service providers).

Results from the survey include:

  • 69% of respondents have less control over at least five of their key supply chain processes since the outsourced model has taken hold; issues are most frequent with non-strategic suppliers and customers.
  • 66% of providers feel their aggregate risk with customers is high or very high.

Twice as many providers feel increased risk from uncertainty now compared to their uncertainty risk prior to the outsourced model (17% vs. 36%).

For further findings from the study visit: http://www.industrydirections.com/knowledge/knowFrames.php3?id=260&url=/news/prNov_16_05.htm

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