Physical and Digital Integration Strategies of Electronic Device Supply Chains and Their Applicability to ETO Supply Chains

Abstract

The growth in the manufacture and distribution of electronic devices presents a source of continuing innovation. Electronic devices are products that integrate physical forms (i.e. hardware) and virtual forms (e.g. software) to deliver value to customers. These forms are very different from a product design and supply chain perspective, but nevertheless they need to work closely together in order to create value for the customers. For electronic device manufacturers, it is important that processes are in place to facilitate the seamless integration of both forms throughout the engineering, production, distribution and support stages of the product lifecycle. This chapter examines the role of physical and virtual supply chain innovation strategies in electronic device supply chains by exploring the commonalities and differences between the design, manufacturing, and distribution models of digital and physical elements. It also explores to what extent such strategies can be employed for engineer-to-order (ETO) supply chains.