Today’s enterprises not only compete for the individual business resources and technologies but also the efficiency of the entire supply chain management (SCM). This is especially true for the electronics OEM industry that component procurement costs are often 80-90% of the final prices or even higher than the accounts. Therefore, how to reduce procurement costs and optimize the shipping time of components by appropriate supply chain collaboration (SCC) are critical practices for the total operat-ing costs, and the corporate procurement executives play an important role in the col-laboration. Thus, the study focused on the collaborations between corporate procure-ment and their suppliers to investigate the effectiveness of the collaborative strategies.
Empirical data collected from a multinational company were used to analyze the effectiveness of applying SCC strategies in component procurement, in terms of costs and shipping time. The importance and SCC models were firstly discussed. Then, the quantity of purchase and raw material price negotiation were added to quantify the benefit of costs and shipping time after the collaboration.
The results suggest that the SCC strategies in component procurement are signif-icantly related to the benefit of costs and shipping time. In terms of cost effective-ness, the average cost reduction of MLCC procurement was 21.6% and the average cost reduction of USB 3.0 wire procurement was 8%. In terms of shipping time, the time efficiency of delivering MLCC was 79.13% improvement and 45.55% improvement for delivering USB 3.0 wire.
