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Lucent Technologies With Analysis


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Lucent Technologies With Analysis

  1. 1. Lucent TechnologiesGlobal Supply Chain Management<br />Bino Joseph<br />Kishore Thomas John<br />Saranya M<br />Vygha N K<br />
  2. 2. Company Background<br />
  3. 3. Growth of Lucent Technologies<br />After becoming independent in 1996, operated in more than 90 countries.<br />Network Systems unit generated 57% of revenue.<br />Market leader in US for switching systems.<br />Flagship product was 5ESS® Switch.<br />
  4. 4. Large-scale, software based digital switching platform.<br />This switch was custom configured (unlimited configurations possible).<br />Engineered-to-order product.<br />5ESS® Switch<br />
  5. 5. Case Facts<br />
  6. 6. Scenario Before 1996 Redesign<br />Asian customers away from order processing and manufacturing activities.<br />Parts produced in Asia shipped to US  long lead times & high costs.<br />
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  8. 8. Issues in 1996 Redesign<br />
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  10. 10. 5 Problem Areas<br />
  11. 11. 5ESS® Switch efficient for voice networks.<br />Current demand was for data networks<br />Product life cycle was shortening, and telecommunication technology was progressing at an ever increasing rate<br />Contract manufacturers got involved in telecommunication electronics<br />5ESS® switch reaching mature part of its product life cycle<br />Other Factors<br />
  12. 12. Was the hub and spoke process, despite its success, the right model for this evolving environment?<br />How could they take advantage of the maturing resources within and outside lucent?<br />What could Lucent do to mitigate exposure to material shortages without increasing inventory?<br />Was today’s leading edge procurement effective for future environments?<br />Questions<br />
  13. 13. Should they continue to drive internal breakthrough improvements or should they harvest their previous supply chain investments and direct their attention towards outsourcing for their future needs?<br />Questions... Contd.<br />
  14. 14. Recommended Action<br />
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  20. 20. THANK YOU<br />