Intel Supply Chain Poised to Withstand Global Disasters

By Freddie Pierce
After the disastrous challenges emerged following the 2011 earthquake in Japan, it quickly became apparent the worldwide supply chain was suffering fro...

After the disastrous challenges emerged following the 2011 earthquake in Japan, it quickly became apparent the worldwide supply chain was suffering from an ever-widening ripple effect. An economic loss estimated at $210 billion meant an uncountable number of businesses were affected and once again underlined the need for companies – big and small – to have a disaster response plan ready to employ at a moment’s notice. The supply chain sector demonstrates this need perfectly due to its utter dependence on suppliers as well as customers.

While others attempted to pick up the pieces, Intel remained largely unaffected by the crisis due to its strong foundation built on effective supply chain management. The supplier’s unique initiatives have paid off, earning it the 7th spot on Gartner’s prestigious list ranking the top 25 supply chains for 2012.

Gartner’s subsequent case study, “Intel Takes its Supply Chain to the Next Level,” details the “inspiring vision” Intel and its supply chain have set for its employees by building “a closed loop execution system that successfully moves operational performance toward that envisioned goal state.”

Inside IT: Transforming Intel’s Supply Chain

The report highlights continues, adding:

-       “Intel has made huge strides to transform itself from an inside-out focused component manufacturer to running a demand-driven value network (DDVN) delivering total customer solutions.

-        Intel has significantly improved its supply chain agility, largely by reducing its overall supply chain cycle time by approximately 40% over the past few years.

-       Intel has demonstrated leadership in social responsibility through its community engagement programs, and, in particular, by driving strict industry certification standards for key raw materials sourced from conflict zones.”



2012 Top Supply Chain List Compiled by Gartner

Intel Steps Up Chip Processing Capabilities

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In sum, supply chains worldwide are urged to use Intel’s initiatives as a model. By taking measures to protect its global supply chain, the company was able to excel in dire circumstances and will be better able to weather similar situations in the future.


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