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Example 5 - Consumer Electronics

A personal digital assistant (PDA) manufacturer has been quickly expanding to meet growing consumer demand. They have been working closely with their many component manufactures throughout this growth phase.

To achieve both structural stability and consumer "niche," the PDA casing is a custom-designed molding of plastic and titanium – a technically difficult but customer-appealing process. Although they have followed the sound business practice of maintaining at least two suppliers for every component, 80% of their casings are manufactured at a single factory in Malaysia. Unfortunately, an exceptionally large hurricane recently devastated the area, destroying the component manufacturer's infrastructure.

Current inventory (20,000 units) will last approximately 4 weeks, not nearly enough supplies for the 9 months required to rebuild the primary component manufacturerís infrastructure. The secondary (20%) supplier is happy to provide more parts, but due to internal and external business pressures, can only ramp up to 50% (10,000 units per month) of the full need.

The PDA executives have already contacted all their business associates and other connections, and as a result have secured an additional supply of 3,000 units (15%). The company still needs to find a temporary supplier for the remaining 35% of the packaging, 7,000 units per month, for the next nine months. They call Fortnight.

A Fortnight Associate works with the PDA company to craft the following Request:

A consumer electronics company is looking for a short-term supplier (manufacturer) of a custom-designed housing that integrates both plastic and titanium. Necessary capabilities include:

  • Component size 4 inches x 7 inches x 0.5 inches
  • Polyurethane molding
  • Titanium layer on two (opposite) sides of polyurethane
  • No degradation of polymer / titanium interfaces from 20°C to 150°C thermal cycling with 80% humidity level or drop test
  • 7,000 units per month
  • 1 month development and testing time

Expert Lead: $500 if within 1 week, $250 if within two weeks

Several Leads are quickly returned, including:

"There is a large packaging and general manufacturing contract manufacturer that is able to process polyurethane and titanium together and can handle the quantities specified in the request."

"I know a portable CD/MP3 manufacturer that uses similar housing in their products. Although they don't usually do contract manufacturing, they may be willing to do this temporarily for the right price."

"We are a medium-sized contract manufacturing house. We have worked with both polyurethane and titanium and have experience combining both together. Question: Are any of the original molds left that we could use? This would substantially reduce the turn-around time of this job."

The PDA company decides to pursue all three Leads, but does not need any In-Depth research to be done. The three Experts who provided Leads are paid according to the Request ($500). Fortnight brings its client together with each of the companies described in the Leads (potential Solution Providers). The PDA company soon comes to the conclusion the medium-sized manufacturer can meet their needs; the solution has been found.

DISCLAIMER: This is a contrived example. Any resemblance to any existing company or problem is merely coincidental.

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