Speed to market is important in most industries, but in the semiconductor business it is absolutely critical, given that consumer devices like cell phones and laptops go in and out of style faster than yesterday's designer blue jeans. A shipment of wafers, pads, circuits or slurries to make semiconductor chips that shows up late, or not at all, can cause severe customer repercussions that reverberate at the bottom line.
To keep its supply chain from disconnecting, Sun Microsystems Inc., a $14 billion semiconductor, storage and server maker, follows enterprise risk management (ERM) principles. With thousands of suppliers all over the world shipping to its internal plants and contracted external manufacturers, coordinating the logistics to ensure just-in-time manufacturing lies with the company's dozen supply chain managers.
Managing the financial risks of system failure, on the other hand, is the responsibility of Kevin Hoskinson, director of global risk and stock services. "We've broken the seal here to get people to look at the supply chain from a true financial impact versus just a traditional spend approach," Hoskinson says.
Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.
Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
- Exclusive discounts on ALM and Treasury & Risk events.
- Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.
*May exclude premium content
Already have an account? Sign In
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
