A Case Study Of Acer's Supply Chain Model

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Other key enhancements in business operations, valued added services, and countering competition will also improve Acer’s supply chain model.

As it relates to business operations, Acer could benefit greatly by utilizing standard contracts worldwide with its customers. This will allow Acer to supply standardized superior services across the board when inquiries arise.

When it comes to value added services, and end to end model will greatly enhance Acer’s supply chain model. End to end value chain innovation will allow Acer to utilize a horizontal value chain as opposed to a vertical value chain. This method will help to identify areas in which there may be non-value added cost and work to mitigate any inefficiencies
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The use of AI would enable Acer to capture information at all levels of the supply chain to ascertain the optimal inventory level. As this technology allows a greater tool for demand planning, its use will introduce the ability to perform both prescriptive and predictive demand forecasting. The AI system will be able to predict the future demand of both existing and new products new to the market. With the use of such a system, artificial intelligence will determine the most profitable and cost efficient solution for all supply chain …show more content…
With a reduction of inventory, Acer will be able to recognize higher profit margins as inventory and labor are the highest cost that there are in this company. In scaling back on the inventory stored, Acer will be able to minimize the cost of warehousing, decrease the amount of labor it takes to track and maintain inventory which will lead to an overall increase in market share.

Competitive Product Lead Times

Acer will recognize a competitive product lead time through consistently fine tuning their demand forecast. They will constantly monitor their supplier’s performance and establish a back-up system should a supplier not be able to meet an order at any given time for any unforeseen reason. Through Acer’s efforts of reducing non-value added activities, simplifying and standardizing parts, optimizing equipment layout, standardizing activities, routine maintenance, and supplier relations management, Acer will obtain and maintain an increased lead time over its competitors who are lacking in these areas. As a result, their current customers as well as new customers will be more inclined towards their product

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