Case Study: Motorola

Case Study: Motorola

The company will benefit from the new supply chain because it will solve gaps from the traditional supply chain. For example, the new supply chain intends to reduce Motorola’s supply base to a manageable number.  Thousands of suppliers in the traditional supply chain had become challenging to manage. In this case, few and reliable suppliers will be selected, and their operation integrated through the information technology process. The inclusion of technology will enable the effective sharing of information between different suppliers and the company. Further, the new supply chain will increase and stabilize a strong relationship between the suppliers and the company. This will give the company high bargaining power for lower supply prices. The new supply chain will enable the company to receive a high quality of supply. It provides the company with an opportunity to advance the sigma six and pinpoint sources of challenges in the supply chain.

By addressing the top six priorities, the new supply chain significantly benefits Motorola Company.  Focusing on execution excellence is an appropriate move. It would create new organizational practices to attain customer-focus and best-in-class performance.  The new supply chain has a slogan “one Motorola,” which is an approach that focuses on deep supplier relationships, initiates collaboration, and cross-business procurement leverage. The company also benefits from the standardized operations and logistic optimization that will increase production output. Overall, the new supply chain reduces cost by giving the company higher bargaining power with suppliers and an increase in service performance.

The key stakeholders within the integrated new supply chain are the supplier, Motorola supply chain management team, Motorola information technology team, quality assurance manager, manufacturing, and logistics management in the company. Each of the players has a duty as highlighted below;

• Supplier- the new suppliers are to collaborate with the supply Motorola management team to supply quality raw materials that meet the integrated supply system standards. Further, the suppliers are expected to work in collaboration with retailer sand distributors to expand the company market based on the new customer markets. Through in-depth supplier relationship management forwarded by the integrated chain, suppliers would have easy access and communication with the company.
• Motorola supply chain management- the company supply chain manager has to work hard to ensure that the addressed six aspects of supply in the new chain are achieved. The supply manager has to provide resources necessary for intended changes and employ new personnel if needed.
• IT management – The new supply chain intends to integrate all operations through the use of advanced information technology techniques. IT manager is responsible for coming up with a supplier relationship management technique that is inclusive of all the company suppliers and the entire Motorola supply unit.
• Quality assurance manager- one of the primary objectives of the new supply chain is to improve the quality of raw materials supplied. It is the role of quality assurance manager from the company to assess supply and approve if they meet the expected standards of the integrated new supply system.
• Manufacturing and logistics team- This team will assess the performance of the new supply chain and ascertain if it is in line with the Motorola company’s mission and vision. It will access if the integrated system helps the company achieve its goals within the specified time.

In conclusion, the new integrated supply chain is beneficial to the outdated tradition system. As indicated in the business results, the new system has achieved a 10% ISC improvement in terms of cost of quality, conversion cost, and material savings. A 45% rise in quarterly revenue and an 82% increase in the quarterly unit shipment were noticed since the implementation of the new supply chain.