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  • Don’t Let Your Supply Chain Control Your Business

    By Harvard Business Review

    Don’t Let Your Supply Chain Control Your Business Manufacturers are delegating too much power to top-tier suppliers, undermining their own ability to innovate, cut costs, and manage risk. A heavy reliance on first-tier suppliers is dangerous for OEMs. It weakens their control over costs, reduces their ability to stay on top of technology developments and shifts in demand, and makes it difficult to ensure that their suppliers are operating in a socially and environmentally sustainable fashion. The remedy is for OEMs to forge direct relationships with a select number of lower-tier suppliers, and this article explains how to do just that. (This is a reprint of the December 2011 Harvard Business Review article written by Thomas Choi, professor at Arizona State University’s W.P. Carey School of Business, and Tom Linton, SVP and CPO at Flextronics.)
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