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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

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.

Keywords

logistics management, firm networks, Information Technology (IT)



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