Value-adding logistics networks: Lessons from Acer and Mitac in Taiwan

Teresa Shuk-ching Poon
School of Business and Administration, Open University of Hong Kong, Hong Kong

PP: 6

Abstract

Taiwan has led many countries in the APEC region in rapidly growing a high technology-based industry. This paper examines the background leading to the formation of logistics networks, a new form of organization which has contributed significantly to the growth of the information technology (IT) industry in Taiwan. Through the operation of logistics networks, Taiwanese manufacturers are able to add value to their manufacturing strength by managing the cost and time used in various stages of the IT value chain. Logistics networks have given Taiwanese IT manufacturers competitive advantages by helping them lower total costs, improve product quality, take advantage of distribution channel efficiencies, and get access to information about consumer needs. In the paper, Acer and Mitac's logistics networks in Taiwan are discussed and the general operational principles of logistics networks are examined in detail.

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Keywords

logistics management, firm networks, Information Technology (IT)

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References

Acer Incorporated (1996) A Fresh Perspective: The Acer Group Profile, June 1996.

Baum, Julian (1995) 'Local No More: Acer Ousts Formosa Plastics from Top Spot' Far Eastern Economic Review, December 1995: 28, pp. 91-91.

Economic Daily News, 4 September 1996.

Lai, S. M., Corporate Sourcing Section, Personal Interview, 2 September 1996.

Mitac International Corporation (1995) Global Resources Meeting Individual Needs.

Mitac International Corporation (1996a) Annual Report for 1995 (In Chinese).

Mitac International Corporation (1996b) Prospectus, 10 July 1996 (In Chinese).

Shih, Stan (1996a) Reengineering Acer. Taipei: Commonwealth Publishing Co. Ltd (In Chinese).

Shih, Stan (1996b) 'The New Information Technology Age: Its Implication to Asia' The Asian Manager, February-March, pp.6- 14.

Soo, Y. C. (1996) 'Logistic management: the Invisible Power of Competition' Commonwealth. 1 May, pp. 22-32 (In Chinese).

Yang, I. L. (1997) 'Stan Shih's Acer: Facing Another Challenge to its Strategy' Commonwealth. 1 January, pp. 61-78 (In Chinese).

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