Ericsson AB is a world‐leading provider of telecommunications equipment and related services to mobile and fixed network operators globally. Its origin dates back to 1876.
For an extensive period of time, the delivery precision of purchased items included in the accessories segment of the Ericsson Microwave portfolio was constantly showing unsatisfying levels. The CDP-method and the analysis conducted during the research project KOPeration has developed an understanding regarding the concept of customer order decoupling point in relation to replenishment lead-time and known flexibility. To improve the efficiency within inbound supply chain development and its impact on both delivery precision and supply chain cost, Ericsson Microwave are committed to continue and expand the research of CDP to include the concept optimization based on CDP analysis and management accounting principles. We see the potential to at least partially answer one of largest and most debated questions within logistics development: “What is the price of lead-time?” The optimization perspective could also define more of customer-driven supply guidelines for sourcing and logistical parameters to regard early in a product development process in order avoid underperforming supply chains in the future. Additionally, Ericsson expects the research project to develop a fundamental understanding of critical parameters within the connecting areas between supply logistics, finance, sourcing and product development where the history reveals a situation containing a lack of understanding, communication and a common strategy to follow. One of the main root causes to the history we have seen is the missing of clear facts, numbers and scientific data supporting the arguments of logistical parameters and their total business impact, whereby an immediate risk of making wrongful decisions regarding material sourcing is noticeable.