The Value Of Synchronized Planning With Contract Manufacturers

By David Vallejo, SAP

In a previous story, I explored the advantages of synchronized planning for supply chain resilience in an age of disruption. The basic theme in that blog was one of digitally enabled planning processes that support the insight, collaboration, and supply chain agility needed to synchronize plans across long-term, mid-term, and short-term time horizons. The implied scenario was one in which the organization owns the execution phase – meaning that the company itself does the manufacturing.

Contract manufacturing is different

One relevant question is: What about contract manufacturing? How does synchronized planning apply to companies that outsource their manufacturing?

Take for instance, the high-tech industry. Most companies that make computers and other high-tech devices are essentially design and brand owners who work with oversees partners to build the products they sell. For these companies, their relationship to execution

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