Report for Lucent Technologies Background Lucent’s history goes back to the 1875 invention of the telephone by Alexander Graham Bell. It’s one of the three companies which were separated from AT&T’s restructure. Lucent was organized into four units, the largest of which was Network Systems. It provided networking systems and software to local and long distance telephone companies and cable companies. It was the marker leader for switching systems. The Switch Solutions Group(SSG), which made the 5ESS Switch, was part of the Network Systems organization. The 5ESS Switch Lucent’s flagship product was the 5ESS Switch. It was based on a modular design consisting by AM, CM, SM. Its modules consisted of several types of assemblies: printed …show more content…
The results of the change were dramatic. The factory was about three times as productive in 1998 as it had been in 1995. Product manufacturing through time decreased from over five weeks to one week. Margins improved by more than 10 percentage points and inventory days of sales fell by more than half. Support of Asian joint ventures and customers improved. These effects combined to make Lucent win the market share. Facing the Questions in 2000 Due to unprecedented growth in the cellular and Internet sectors, component demand far outstripped supply, and unprecedented material shortage developed. Leading edge procurement arrangements were sorely tested, and in some cases broke down. Lucent was vulnerable to this imbalance in supply. The problems could be broken down into five areas: 1. Sole-sourced component lead times more than doubled. 2. Inventories increased by about 25 percent, as assemblies could not be completed. 3. The Taiwan factory had to commit to early parts delivery to ensure availability 4. Product shipments to customers were jeopardized, and orders were at risk due to an inability to ship on time. 5. Premium prices were required in order to obtain expedited shipments of missing parts Solutions 1. Use contract manufacturers. Since contract manufacturers were started to get more involved in sophisticated telecommunications electronics and the labor cost there is much lower than in United
Effective management of follow-ups, managing shipping delays, and communicating updated information to the customer is key to our success. Part of this is renegotiating RDD’s with the customer if there are supplier delays, at this time the date in the system must be
One of the commercial risk involved the quality of goods delivered. When the Wisconsin made its first delivery to Saigon jewels, they indicated that not all of the jade gems received are of good quality. So, the delivered goods did not match the expectations of buyers. The other commercial risk Wisconsin faced was nonpayment and non-delivery or delay in
This is decsions should be based at a organisational and strategic level as you need to aware of company regulations regarding the products as well as strategic on knowing who you can work with best. There could be relation between working staff and transportation as this might have been caused because of the lack of communication between staff there is no 50:50 between who to blame on the late delivery. As it would be a hassle if there is a late delivery the staff would need to phone the company.
If clients will remain at old place of warehouse they have to face issues with the delay in delivery to their customers.
High risk of huge inventory returns from the distributors if they are not able to sell in reasonable timeframe. This will increase huge sales return in B&L books in the following year.
The change in the competitive environment greatly influenced JDCW. The early 70s were the end of the post WWII boom period, during which time JDCW was expanding its operations and operating many of its manufacturing plants at capacity. However, there were multiple economic factors in the early 80s that negatively affected the demand for JDCW products. The effect of these economic factors is evidenced in the case study by the fact that during the 1970s
Cisco Systems, Inc. is an IT company that specializes in the selling of networking and communication products and services. It is a B2B company where they sell its products primarily to large enterprises and telecommunications service providers, but it also markets products designed for small businesses and consumers such as routers, modems, and home network management software. The products and services aim to transport data, voice and video communication within buildings and campuses as well as around the globe. The services include routing, switching, home networking internet protocol telephony, optical networking, security,
iii. Processing merchandise while leaving and entering the warehouses was In itself a very inefficient and unfruitful task because of the bad state of inventory management in the warehouse. This contributed to frequent stock outs in the stores because of the lack of proper inventory processing.
The combination of the state-of-the-art products and a rapidly expanding market resulted in AMT’s sales growth in excess of 30% per year. Sales volume, which had grown continuously from the start, was always large in relation to available capital. The situation was worsening by large operating losses.
If the operation have not reordered all the goods they need, this can lead to irritated customers and lower revenue for the operation.
$24.7bn. Why do you think the market reacted so negatively to Lucent’s announcements of the
recalls related to product quality problems. Observers felt the company would have lost even more
The management shifted its strategy from steady organic growth and profitability into focusing on growth in 1993 and then tried to restore profitability and growth through "fitness program" and series of changes during the period of 1999 to 2004. The strategic actions deviated from some of the ten principles.
The only fly in the ointment is that Lucent is a relatively young company in its present form. However, remember that the company's origins go back a long way as Lucent was formerly the Bell Labs unit of AT&T."1 Overview Lucent provides complete services including software that equips service providers to extend wire line and wireless access, local, long distance and international voice, data and video and cable services. The SPN segment includes the product groups responsible for Lucent's optical networking, switching solutions, access, wireless networks and software products businesses. It also includes the businesses that are focused on the needs of cable television operators, and data networking systems for service providers, as well as the sales and support organizations responsible for offers, sales, distribution, installation and maintenance for service provider customers worldwide.
Exceptional growth in cellular and web, resulted in more component demand than supply, leading to material shortages. Inventories costs increased and lead times doubled. Contract manufacturers who have increased their quality to international level and competency in telecommunication electronics made Lucent think to develop its own assets and inventories.