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NEC's
Announcement to Outsource Telecom Manufacturing Part of Industry-Wide Trend
press
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Report
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BOONTON,
NJ. January 9, 2002:
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As the global telecommunications
industry suffers through its worst slump in one hundred years, many major
telecom suppliers, including NEC Corporation, are opting to sell or
outsource their manufacturing operations. The outsourcing trend is part of
a major structural change under way in how basic components are ordered,
built, and supplied, creating what amounts to a revolution in the use of
supply chain management among the big telecommunications suppliers, says
Insight Research.
According to Insight's report, Supply Chain
Management and Telecom Components, the shift to an outsourcing model
means that operational efficiencies and cost reductions have become the
first law in supplier relationships. Vertically-integrated manufacturing
operations are increasingly being subject to intense scrutiny to measure
operational efficiencies, and those that don't measure up get sold.
"When supply chain management techniques are adopted, telco
purchasing agents can easily rationalize supplier selections, narrowing
down the decision from thousands to just a select few," says Insight
president Robert Rosenberg. "As this rationalization takes hold
industry-wide, vendors start to feel the squeeze. If operational
efficiencies are not there, vendor management can take the pressure off by
outsourcing their manufacturing operation. This was part of the reason
that NEC's operations were sold."
Supply Chain Management and Telecom Components:
Construction, Electronic Enclosure Packaging, Power Systems, and Wire
& Cable 2001-2006
forecasts the market for functional common core
components including integrated electronic enclosure packaging, wire and
cable, and power plants and systems. Telecommunications construction and
professional services revenue for engineering, planning, installation, and
support is also presented.
A free report excerpt, table of contents, and ordering information is
online at www.insight-corp.com/scm.asp.
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Optical
Networks: DWDM and SONET 2003-2008
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DWDM, SONET and
Photonics:The Emerging All-Optical Network 2001-2006
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Customer
Premises Fiber: The Business and Residential Inside Wiring Revolution
1999-2004
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Insight
Research,
founded
in
1990,
is
a
highly
respected
source
for
telecommunications
market
research
and
strategic
analysis.
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| Contact
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Donna
Savino
at Insight Research
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Telecom
Market
Research,
