Economic Distribution Models for the High-Tech Industry

  • by Biju Thantry Parasuraman, Consultant, Infosys Technologies, Ltd.
  • Nageshwar Madduri, Senior Consultant, Infosys Technologies, Ltd.
  • January 15, 2008
Learn about the five main distribution models used in the high-tech industry. Find out when to use each one and the basic steps involved.
Key Concept

One of the key drivers for successful supply chain management is a distribution model based on quick order-to-delivery response. This model must meet the customer’s demanding and specific requirements. The distribution model takes into account what products are in the customer’s order, where the products are located, and how to get the order to the customer in the most efficient time.

Recent changes in the high-tech industry, such as computer manufacturing, have shifted the focus of the supply chain to customers. Apart from selecting the product of their choice, customers also tell the suppliers how and when to deliver their inventories. As a result, supply chains are constantly being driven to remove inefficiencies, excess costs, and excess inventories throughout their pipelines.

An efficient supply chain for the high-tech industry involves proper management of the network of facilities and distribution options that procures materials and distributes the finished products to customers. When designing and implementing the distribution models for high-tech corporations, the following questions usually arise:

  • How do we economically manage the order-to-delivery process when manufacturing and sourcing is distributed across geographies?

  • How do we economically distribute the orders for a multiple-sourced component?

Biju Thantry Parasuraman

Biju Thantry Parasuraman is an SAP consultant at Infosys Technologies, Ltd., with more than seven years of domain expertise in the areas of high tech and discrete manufacturing. He has been a Sales and Distribution (SD) and Service Management (SM) consultant for the last three years. Biju holds a bachelor’s degree in engineering from NIT-Durgapur and a master’s degree in technology from IIT-Madras.

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Nageshwar Madduri

Nageshwar Madduri is an SAP functional consultant at Infosys Technologies, Ltd. He has more than eight years of domain expertise in the high tech and consumer products industries. He has been a Sales and Distribution (SD) and Materials Management (MM) consultant for the past six years. He holds a bachelor’s degree in engineering from NIT – Rourkela and an MBA from MDI, Gurgaon.

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