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Global Reach: Taiwanese Notebook PC Makers' Logistics Models

Published by: Market Intelligence Center

Published: Apr. 20, 2006 - 20 Pages


Table of Contents



Table 1 The Customer Portfolios of the Four Largest Taiwanese Notebook PC ODM Providers

Table 2 Comparison of Major Notebook PC Vendors' Purchasing Decision-Making

Table 3 Branded Vendors' Degree of Involvement in Component Purchasing

Table 4 Individual Components' Share of Total Notebook PC Production Cost and Component Procurement Decision

Table 5 Global Operations of Taiwan's Four Leading Notebook PC ODM ProvidersFigure 1 Taiwanese Notebook PC Shipment Volume and Global Shipment Share, 2002 - 2006




Figure 2 Gross Profit Margins of Taiwan's Four Largest Notebook PC ODM Providers, 2001 - 3Q 2005

Figure 3 Notebook PC Product Development Process

Figure 4 Dell, HP's Revenue Share by Regional Market, 2005

Figure 5 Global Operations of Taiwan's Four Leading Notebook PC ODM Providers

Figure 6 Logistics Model Adopted by the Taiwanese Notebook PC ODM Providers - Dell Orders

Figure 7 Logistics Model Adopted by the Taiwanese Notebook PC ODM Providers - HP Orders

Abstract

Recently, major notebook PC vendors have launched a large number of value-line notebook PC models with the aim of speeding up the desktop replacement effect and bringing about an increase in overall global market demand. The rollout of these value-line notebook PCs has led to a rapid decline in prices. To maintain reasonable profit margins, vendors have had to focus on cutting their production costs and transaction costs; they have been working to improve the efficiency of purchasing, product design, and logistics. Those companies responsible for notebook PC product design and ODM production are now faced with increasingly rigorous demands from branded vendors. This report will examine the global logistics models that notebook PC ODM providers have adopted in response to these new developments.

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