Comprehensive Analysis of Sanmina Corporation

Operational Management and Comprehensive Analysis of Sanmina Corporation

            The Sanmina Corporation is an American based company that deals in electronics manufacturing services. Consequently, the company significantly has its headquarters in San Jose satiated in California. The company was founded by two individuals who are Jure Sola and Milan Mandaric in the year 1980 primarily manufacturing printed circuit boards. In terms of operations, the company has over thirty-eight thousand four hundred and seventeen employees based in more than twenty-seven countries globally. The company is responsible for its customers with communication, multimedia, computing and semiconductors services, among other significant products as services.

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The company also deals in designing and manufacturing optical, electronic and mechanical products for communication networks, defence and aerospace sectors. Ultimately, the company also generates revenue of up to two hundred and thirty-one point nine dollars per given employee. Consequently, the top competitor of Sanmina is Benchmark which is under the leadership of Jeff Benck acting as both the president and CEO of the company. Sanmina operational management is key to the company’s success. It has a well-structured process for selecting aspects such as productivity indexes, positioning strategies, value chain management, supplier/sourcing management, inventory management control, management control and forecasting and aggregating planning.

Productivity Indexes/ RatiosSelection Process

Firstly, according to economists, productivity is referred to the efficiency in which given corporations or firms among other bodies such as industries and organizations convert and transform inputs such as labour, capital and raw materials into output. Ultimately, productivity often increases when the outputs grow faster than the inputs. Therefore, productivity does not significantly show how a given corporation values its production but instead useful in measuring the efficiency of the available resources are used(Halpern, Kore &Szeidl, 2015). With the Sanmina corporation, the productivity indexes or ration is often selected by standardizing ratios to a given base value. Since the company has numerous factories, the productivity index for each given Sanmina factory is often compared to the trends of each other.

Ultimately, a comparison is often made by the corporation from the several index numbers of a given period that significantly shows the relation in progress established and made in the from the beginning of the base period. Therefore, the Sanmina corporation often follows a significantly structured process in selectin the product index and ratio by first determining the labour weighted production index(Halpern, Kore &Szeidl, 2015). Secondly, the corporation often determines the labour ratio as a denominator which later is used in determining the productivity index.

Positioning Strategies Selection Process

             Position strategies often crucial to any given company when aiming for success in a competitive market platform. For instance, because the Sanmina corporation has one major competitor the Benck company it has a well-structured process for selecting its product positioning in the market to ensure that it remains competitive and always on top of the game. Firstly, the corporation often aims at knowing the target customers and the market dynamics while trying to understand their needs and preferences(Rothaermel, 2016). Secondly, after identifying the target audience and the market dynamics identification of the company’s competitive advantage is often done.

This level includes considering aspect such as pricing of the products, features and benefits that might result from the selling of the products. None the fewer theses are the given aspect that is significant for a company to know whether it can outperform its competitors in the market.Thirdly, the company often ensures to chose the competitive advantages that define the goals of the company, fitting the expected outcomes to the needs of the customer in the market. Therefore, the choosing of a competitive advantage that defines the requirements of the company is always important in choosing a unique approach of positioning the company in the market which its competitors fail to implement(Rothaermel, 2016). This is the same level that Sanmina corporation often comes up with a perceptual map. A perceptual map can be defined as the creation f a picture of how different competitors of a given company are positioned in the market.

The second last stage of selecting a positioning strategy by the Sanmina corporation is of the defining of the positioningstrategy using several factors such as category benefits, best fit for customers, anticompetition, pricing and quality of the services. For instance, the company’s essential services include optical manufacturing and mechanical products for communication networks, defence and aerospace sectors. The final step of the process is the communication and delivering of the positioning strategy to the company’s organization and management to help in understanding how the approach will be effective in its position in the market.

Value Chain Management Selection Process

The value chain of Sanmina is of great importance to the company. Ultimately, a value chain management selection can be described as the aspect of making both industries and value chains a priority by basing them on a criterion that involves their potential for both growth and competitiveness(D’heur, 2015). Sanmina’s process of selecting value chain management first consists in looking at the competitiveness potential of the company in terms of efficiency and product differentiation. Additionally, the company also looks at its impact potential on the given target groups of customers before considering cross-cutting aspects. Also, the company takes into consideration the leadership aspects of the industry before starting the selection process.

The first step of the selection process is often data and information collection on a given sub-criteria by use of both qualitative and quantitative approaches. The major elements taken into consideration in the given step include the market share, competition and substitutes, business environment, market growth and the stakeholder analysis covering all the assigned areas mentioned earlier such as competitiveness potential, impact potential, cross-cutting aspect and industrial leadership(D’heur, 2015). Therefore, after the selection of the required data and information analysis often follows by either the use of porters five analysis or PESTEL analysis before selecting a suitable value management chain.

Supplier/ Sourcing ManagementSelection Process

Choosing the right supplier is essential for the success, existence and sustainability of any given company. Sanmina Corporation has a vast number of customers giving the company a need to come up with a supplier and sourcing management process(Zimmer, Fröhling&Schultmann, 2016).The Sanmina corporation follows a six-step structural process significant in the selection of an effective supplier and sourcing management plan. The first step of the process includes following a strategic method for selecting suppliers based on critical thinking in acquiring suppliers that provide matching products needed by the company. Secondly, the next step involves determining the given characteristics of supplies and sourcing fields.

After a determination of the supplier characteristics is done, the potential suppliers form the company identifies the selected ones through the use of recommendations; business advises trade presses and even trade associations amongst other unmentioned sources. Eventually, a shortlist of suppliers is obtained in which one or two suitable suppliers are chosen to provide the electronic services to the company which is arrived upon by considering the company’s needs.

 

Reference

D’heur, M. (2015). Sustainable Value Chain Management. Springer International Publishing: Cham.

Halpern, L., Koren, M., &Szeidl, A. (2015). Imported inputs and productivity. American Economic Review105(12), 3660-3703.

Rothaermel, F. T. (2016). Strategic management: concepts (Vol. 2). McGraw-Hill Education.

Zimmer, K., Fröhling, M., &Schultmann, F. (2016). Sustainable supplier management–a review of models supporting sustainable supplier selection, monitoring and development. International Journal of Production Research54(5), 1412-1442.


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