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Forging Stronger Supply Chains

Applying ERM principles to managing supply lines that often stretch around the world allows companies to prioritize risks and establish action plans to respond.

By Russ Banham | Updated on September 01, 2008

Speed to market is important in most industries, but in the semiconductor business it is absolutely critical, given that consumer devices like cell phones and laptops go in and out of style faster than yesterday’s designer blue jeans. A shipment of wafers, pads, circuits or slurries to make semiconductor chips that shows up late, or not at all, can cause severe customer repercussions that reverberate at the bottom line.

To keep its supply chain from disconnecting, Sun Microsystems Inc., a $14 billion semiconductor, storage and server maker, follows enterprise risk management (ERM) principles. With thousands of suppliers all over the world shipping to its internal plants and contracted external manufacturers, coordinating the logistics to ensure just-in-time manufacturing lies with the company’s dozen supply chain managers.

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