The Enigma of the Global Supplier Hub
In order to have more control yet operating in a collaborative mode, the preferred Component Partner, price and quantity is often dictated by the parent company. In order to increase visibility and have better control over the inventory across the supply chain, many high tech companies are setting up Global Supplier Hub for the Component Manufacturers at a place in proximity to the Manufacturing Partner site. The warehouse is maintained by a third party and the parent company usually pays the provider for the services. The goods are owned by the Component Partner till the time they are supplied to the Manufacturing Partner.
Typically, the Manufacturing partner build schedule and inventory balance triggers the supply requisition based on the replenishment model. The component partner ships the material into the hub based on the trigger and provides Advanced Shipment Notice for all shipments into the Hub. The Manufacturing partner in turn pulls material from the Hub based on the daily manufacturing requirements. The shipment from the Hub to the Manufacturing partner is usually provided by the service provider. The ‘On Order’ and ‘On Hand in Hub’ information is made available to all stakeholders.
Some of the advantages in this model are increased component visibility for all In-Transit and On-Hand material positioned to support all manufacturing locations, a standard way to value inventory by all channel partners and increased speed, accuracy and accountability.
