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Industry Council Tapped to Guide Electronics Industry Research Project: Results of Impact of Outsourced Operations to be announced at ESCA Winter Symp

31 October 2005

The Electronics Supply Chain Association (ESCA) and Industry Directions Inc. today announced that executives from a group of leading electronics companies have helped guide the research effort examining the impact of outsourced and contracted operations in the electronics industry.

The Industry Council members for this research project are: Bill White, Sr. VP & CIO of Amkor (AMKR), Franklin Grosvenor, VP Operations of ConSentry Networks, Paul Fox VP Operations Development of Flextronics (FLEX), John Flebut, CIO of LSI Logic (LSI), Joan Ordway, VP, Procurement of ON Semiconductor (ONNN) and Mitch Haynes, Sr. Director Supply Chain and Planning of Palm, Inc. This select group of people has facilitated a research survey that over 100 other companies have participated in this fall.

This Industry Council represents a broad cross-section of the electronics industry. These six companies are leaders in semiconductor design, fabrication, test and assembly, electronics manufacturing services and original design manufacturing and OEM electronics systems. During several face-to-face meetings as well as telephone interviews, this Industry Council has ensured that the project focuses on issues each level of the electronics supply chain faces today. These companies have participated because the research touches on issues that are important to their business success.

The research project’s goal is to understand how well current processes and systems allow companies in each segment of the electronics supply chain to mitigate the risks of this now well-established business model of outsourced and contract operations. ESCA and Industry Directions will deliver a full report at the ESCA Winter Symposium November 15-16, 2005 in San Jose, California.

The Industry Council has focused the research on several key issues that include:
•How well do outsourcing processes and agreements meet business objectives?

•How are companies mitigating the risk of outsourcing operations?

•What are the best practice business processes to manage operations that involve contract relationships with suppliers and customers?

•How do personnel and organizational issues help or hinder the success of trading partner collaboration?

•Where does IT provide support and enable best practices in outsourced buyer-supplier relationships?

•How do metrics, contracts and standardized agreements support successful outsourcing for all parties?

“Through the participation of the industry council, we have generated valuable research and an engaging conference program. Without the participation of this group of industry leaders, this survey would certainly have missed some of the nuances about risk mitigation, contracts and day-to-day working agreements,” said Dean Strausl, executive director of the ESCA.

“We want to recognize the contributions these key ESCA members have played in making this project succeed,” said William Brandel principal of Industry Directions Inc. and project leader. “Their varied viewpoints and lively discussions have helped refine our thinking and made the research more closely match what electronics companies care about across the supply chain.”

The study is sponsored by Archstone Consulting (www.archstoneconsulting.com), Microsoft (MSFT) (www.microsoft.com), RiverOne (www.riverone.com) and Viacore (www.viacore.net).

About the ESCA
The Electronics Supply Chain Association (ESCA) is dedicated to promoting thought leadership, awareness and education of best practices throughout the electronics supply chain, accomplished largely in part by building a community of industry professionals at leading companies. As a significant link and resource to this dynamic industry, the ESCA plays a valuable role in facilitating information exchange and collaboration efforts within the electronics supply chain through its many educational forums, symposiums, benchmarking, progressive research, industry news and market intelligence.

About Industry Directions
Industry Directions is an industry analyst firm that conducts research on the business processes and enabling technologies used in manufacturing value networks in specific vertical industries. These industries include electronics and industries that use electronics such as automotive, aerospace and defense, consumer durables, industrial equipment, and telecommunications equipment, plus other manufactured and processed goods. Areas of focus include supply chain, business-to-business, production, lean & other improvement initiatives, enterprise management, product lifecycle management and performance management. To learn more, visit: www.industrydirections.com

Contacts:
ESCA
Marc Gendron
559.228.8424

Industry Directions
Julie Fraser
508.362.3480