Network Design: SanDisk Uses Smart Postponement to Slash Costs 60%
In an industry where average selling prices on new products decline by 40% to 50% per year, the fundamental question is how anyone makes money. The results of perpetual network re-design and flawless fulfillment execution at flash memory product maker SanDisk give us an irrefutable answer.
Starting in 2001, SanDisk partnered with supply chain service provider ModusLink to provide packaging, multichannel fulfillment, reverse logistics, and related services globally for all products sold through retail.
Between 2001 and 2006, SanDisk’s revenue grew from $300M to $3.3B. Even more compelling, in 2006 SanDisk delivered its shareholders an operating profit margin in excess of 13%. ModusLink's SKU-level optimization prowess and global process for late-stage product configuration was key to SanDisk’s results. Read this article to see how results can be obtained despite radical change to the business model.
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