Lucent Technologies Supply Chain Of Asia

954 Words4 Pages
Lucent Technologies supply chain in Asia had many issues back in1996 and once it became independent from AT&T; some of which were long lead times, high cost, high inventories, poor technical support for local Asian operations and its customers. This was a consequence of the historical supply of Asia from the United States. The establishment of local Asian facilities was only as an entry mean to the Asian market. Even though the facilities provided some high-level assembly and test, the supply chain was organized and centered on the U.S. leading to the problems mentioned earlier. A change was required and thus a supply chain redesign was completed in 1996, providing more Asian content. The change had a successful payback; however, developing changes in the marketplace, in suppliers, and in the manufacturing environment suggested that the supply chain was no longer optimal. At the start, forming the four joint ventures in Asia (Taiwan, Indonesia, China, and India) was only an entry vehicle for Lucent into the Asian market and not part of a manufacturing strategy. Nevertheless, Lucent had its share in the Asian market, was able to manage its business there successfully, and did not have much of challenges. They were the market leader in the U.S. for switching systems, and their flagship product- the 5ESS® Switch- was the most reliable and widely used switching system around the world. Selling their product was relatively easy back then - before the telecommunication market was
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