In the dynamic market of smart phone competition, companies need to set up a antiphonal supply concatenation to accommodate with the altering environment and Motorola is non an exclusion. As they introduce their advanced Droid 2 to Vietnamese market, Motorola looks for suited solutions to beef up their competitory supply concatenation, particularly in this state. Through the overview of Motorola ‘s internal and external facets in dynamic Vietnam logistics environment, this paper exams the troubles the endeavor ‘s supply concatenation is confronting and proposed three possible solutions in logistics and supply concatenation positions.
The strength of Motorola lies in their experience, engineering, and competence in pull offing electronics supply concatenation in different states. Although outsourcing non-core concern such as transit may do the endeavor to lose control on the activity, yet it besides enables them to concentrate more in their nucleus operations. Therefore, the supply concatenation is more adaptative to the dynamic Vietnamese logistics environment, where the transit and information substructures are under-developed.
They lead to five major issues for Motorola supply concatenation mentioned in this paper: keeping high degree of stock list, low lead clip, inaccurate demand prognosis, seasonableness, and stock list status. To work out the suggested issues, the paper proposes three logistics scheme for Motorola: transportation-based 3rd party logistics ( 3PL ) , collaborative planning, prediction and refilling ( CPFR ) , and utilizing wireless frequence designation ( RFID ) .
Transportation-based 3PL is expected to work out the transit troubles for Motorola, every bit good as guaranting in-transit stock quality and seasonableness. CPFR enhances the coaction between merchandising spouses to better prediction, cut downing lead clip and diminishing the hazards of overstock and stock-out. Last, RFID supports stock list visibleness, taking to accurate stock list direction and refilling. Among the three schemes, CPFR is the most suited for Motorola to accommodate due to the advantages of collaborating, planning, and prediction.
Therefore, lead clip will be reduced and stock list is better managed, the load will be shared by many houses in the supply concatenation, and clients will be served better. Adapting CPFR, in the first one-fourth of 2010, Motorola is expected to cut down prognosis mistake to 2 % , lead clip to 5 yearss and stock-out rate to 2. 5 % . Although CPFR is expensive and raises hazards of sharing information, the benefits of accurate prognosis, shorter lead clip, better pull offing stock list, and above all better client services will be critical for the successful launch of Droid 2 into Vietnam.
From China and Indonesia providers, 60 % of constituents will be shipped to Motorola mill in Malaysia by air. Apparition Game Tech ( AGT ) will transport the USB game tablets to the Malaysia works to put in with the phones. AGT will besides provide the package to Motorola Malaysia works to put in into the phones.
In Motorola Malaysia mill, they will bring forth 40 % of critical constituents of Droid 2. The nomadic phones will be assembled in this mill with package installed. Then the phones will be temporarily packed.
Droid 2 will be shipped to Hanoi and Ho Chi Minh City distribution centres. The packaging, labelling, and publishing supplier will present the bundles and Vietnamese linguistic communication user manuals to the distribution Centres, where the concluding packaging will be processed.
From the distribution centres, Droid 2 will be delivered to retail merchants, including nomadic phone shop ironss ‘ warehouses, individual Mobile shops, electronics shops, section shops, and camera shops transporting cell phone. The nomadic phone shop ironss so will present Droid 2 to their stores. From retail merchants, Droid 2 is sold to stop users.
Vinaphone provides SIM card for clients in the retail stores so they can utilize the phones. For users already holding a Vinaphone history, Vinaphone will steer them to trip their 3G maps. All the transit in the supply concatenation will be outsourced to third party logistics.
Motorola has the engineering, experience and accomplishment in pull offing electronics supply concatenation internationally.
Outsourcing the transit for 3rd party suppliers, they can concentrate on its nucleus competence. With their specialisation, the 3rd parties can cut down transporting clip and contribute to the antiphonal supply concatenation Motorola aims to construct.
The two distribution centres located in Ho Chi Minh City and Hanoi, which have the most cohesive transit systems in Vietnam and concentrate complex retail systems, will enable the merchandise flow from fabricating to distribution and retailing move swimmingly.
Transportation system of the supply concatenation will be outsourced to transit based 3rd party logistic service suppliers. Therefore, Motorola may loss some control over its transit activities and in-transit stock list.
Furthermore, as two spouses in the supply concatenation, such as Motorola and its retail merchants, will non cover straight with each other when stock list delivered, it can weaken the coaction and communications between them, and challenges the demand prognosis ability in the supply concatenation.
Motorola does non cover straight with Vietnamese end-users but through retail merchants. This creates troubles for Motorola to accommodate to the tendency in smart phone market, cut downing the reactivity of the supply concatenation.
Bettering telecommunication substructure a precedence of Vietnamese authorities, so bettering the flow of information in supply concatenation.
After WTO accession, Vietnamese logistics is more welcome to foreign investors. Third party logistics suppliers in Vietnam is besides bettering their services to more sophisticated degree ( Nguyen 2009 ) , so Motorola can entree to more competent 3rd party services to fix and better the supply concatenation public presentation.
The deficiency of mix conveyance bureau ( Venard 1996 ) forces Motorola to utilize more than one 3rd party in transit activities. The broad information sharing between the houses can raise the information security hazard
There is no advanced engineering and information system such as EDI ( Nguyen 2009.p15 ) to back up logistics, impacting the ability for Motorola to pass on with their spouses.
Vietnam transit systems is under developed with intensive roads, the deficiency of lading planes and installations ( Goh & A ; Ang 2000, p.897 ) ; congested ports even in Ho Chi Minh metropolis, merely managing ships up to 25,000 DWT, doing dramatic constriction in supply system ( Goh & A ; Ang 2000, p.901 ) . The jobs result in longer lead clip and adding up logistics costs and hazards, so the seasonableness in Motorola distribution will besides be affected.
The rise in air lading fee sing higher demand near New Year may increase the cost of presenting USB tablets to Malaysia and transporting Droid 2 in 2010.
The deficit of automatic warehouse consequences in most material handlings are done manually ( Goh & A ; Ang 2000, p.905 ) , perchance damaging SKUs every bit good as lengthen lead clip.
Vietnamese companies are loath to portion information ( Tuang & A ; Stringer 2008.p398 ) . This creates barriers to better relationship and information sharing within Motorola channel partnership, diminishing demand prediction.