Within the Microsoft Corporation, the original equipment manufacturing (OEM) supply chain has gone largely unchanged over the past decade. Over the years, the supply chain architecture is a good economic outsourced model. It is effective in fulfilling the basic needs of Microsoft over its safety and efficiency. Although the supply chain model has worked well for Microsoft and its customers, the company is always looking for ways to improve things for their customers. Microsoft has noted the various changes within the market and saw possibilities for change. “As we have seen the PC industry is changing, due to increased competition and macroeconomics, we knew we had to take action. Microsoft OEM Operations needed for large, customer influence changes that reduce costs and service to improve, “said John Solheim, World Wide Supply Chain Director for Microsoft Licensing, GP (MSLI) in Reno, Nevada. The analysis of current supply chain environment presents enormous beneficial conditions for the OEM supply chain transformation project to start in 2008.
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