Supply Chain Management of Paramount Importance in Unsettled Telecom Market

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BOONTON, NJ. November 27, 2001:

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The telecom industry's radical shift this year from a supply-driven marketplace to a demand-driven model places paramount importance on supply chain management (SCM) techniques to improve operating efficiencies and reduce expenditures, says a new report from Insight Research. In this new telecom market where technology is deployed only if it enables services with proven demand or reduces network operating costs, SCM efficiencies will dictate carrier and equipment vendor purchasing activities for years to come.

According to Supply Chain Management and Telecom Components 2001-2006, supply chain management enables telecom equipment purchasers to improve their procurement processes, decrease time-to-market pressures, and easily access current product specifications. In turn, telecom component suppliers who incorporate SCM can cost-effectively access global markets and streamline their sales, marketing and distribution channel operations. Total US spending on telecom components such as electronic enclosures, wire & cable, power systems, and construction will exceed $33 billion by 2006, the report says.

"Marketing issues such as distribution channels, customer management teams, pre- and post-sale support and customer service are becoming much more important in this market than ever before," says Insight president Robert Rosenberg. "Telco buying preferences are changing dramatically and the traditional sales model no longer exists. In an age where telecom companies demand more value than ever before, component suppliers must align their sales strategies with carriers and vendors now to maximize growth potential."

Supply Chain Management and Telecom Components 2001-2006 examines the structural changes in telco equipment purchasing and the impact of industry slowdown on component firms, presenting strategies to sustain revenue growth in an increasingly uncertain market. Insight forecasts revenue in the four major functional core component sectors and uncovers opportunities unique to each segment: integrated electronic enclosure packaging; power plants and systems; wire and cable; and telecom construction and professional services.

A free report excerpt, table of contents, and ordering information is online at www.insight-corp.com/scm.asp.

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Donna Savino

at Insight Research

973-541-9600