Editorial - Kerry Mok
Consumers Drive Change
Increasingly, technology is driven by the consumer’s needs and wants, while consumers, in turn, have much greater choice. Beyond hardware, software and brand are major differentiators. As our customers change with this evolving market, we can help by paying more attention to what they need – and what their customers need.
Consumer demand and product innovation drive shorter lifecycles. New products can quickly become commodities, where the only differentiator is price. At the same time, technology is becoming more mobile. There is a clear movement away from laptops toward tablet computers. Products like mobile phones, cameras, laptops, and even gaming devices, are converging. People want fewer devices that can do more – anywhere.
Editorial - Kerry Mok
Consumers Drive Change
Today’s “Web 2.0” has led to changes in consumer buying behavior that must be taken into account. Social media exert a growing influence on buying decisions. Online sales channels have increased transparency of the products in the market and further accelerated price deterioration. Technology companies are closely monitoring these developments, which require new cost-efficient supply chain models with higher flexibility and an increasing share of B2C deliveries.
Understanding the fundamental needs and differences in customer buying behavior allows targeted alignment of service levels and is the blueprint for a new business model for corporate supply chains. Segmenting customers according to their needs drives specific value propositions, which in turn must be supported by appropriate internal capabilities and leadership styles, to succeed.
Editorial - Kerry Mok
Consumers Drive Change
If a company then aligns its supply chain dynamically to its customer base, the result can be highly profitable, as several customers have found, working in partnership with DHL. The concept of demand driven supply chains addresses the high pace and dynamic characteristics in the technology supply chain.
It is all about linking R&D, product development, marketing, and demand planning with manufacturing, logistics, supply planning and sourcing, to be able to react faster to changes and manage demand. Operational excellence, but also excellence in innovation, are key characteristics for a best-in-class supply chain, which is even better explained by the term “value chain,” since it includes the whole value creation process of a company.
Editorial - Kerry Mok
Consumers Drive Change
Supply chain experts from Gartner/AMR have developed the methodology and publish an annual ranking of best in class supply chains. Almost half of the 2011 Top 20 list are from the technology sector, including such leading brands as Apple, DELL, RIM, Cisco, Samsung, Microsoft, Intel and HP.
They all have been acknowledged for their leadership in demand driven supply chains, which allows them to stay close to their customers with innovation in product development and operational excellence in their supply chain – and DHL is passionate about supporting them in this, going forward.
Kerry Mok
