Bridging the Digital Divide: Consumer Electronics and Hollywood

November 22, 2009 · Posted in Interviews

An Interview With Yuka Yu, VP, Global Supply Chain Operations, Sony Electronics

Convergence is real for today’s hardware manufacturer who needs to ride the wave of consumer content demand while managing their product inventory and overall mix. At the Consumer Electronics Supply Chain Academy (CESCA) on January 8, 2010 at the International CES experts will address how web-enabled devices and business models are creating a new supply chain for home entertainment.

Moderator for the workshop is Yuka Yu, Vice President of Global Supply Chain Operations, Sony Electronics. She is responsible for customer supply chain operations, data management and strategic integration of demand and supply planning processes and executions for the company.

In this interview she offers a preview of this topic, which will be top of mind for many supply chain as well as sales and marketing executives at the world’s largest technology exposition in Las Vegas.

How do you describe the role of supply chain management at Sony Electronics?

We recognize that effective supply chain management is a competitive advantage. Especially in today’s environment of economic uncertainty and increasing competition, supply chain excellence has been identified as one of Sony’s imperatives for the years ahead. We have always been focused on delivering to our customers, but now, more than ever, we are taking a coordinated approach to supply chain management to strengthen customer relationships and imprint an “operational DNA” mindset across the company.

Considering you are a global company, what are the challenges in having the right product at the right time at the right place?

Our challenges are no different than any other global company. We must accurately predict demand and plan supply across multiple geographies, and we need to manage the complexities of trade compliance and transportation networks in the different regions. In the US, with much of our product originating from Asian manufacturers, we need to balance the need to keep customers in stock with the requirement to control our inventory levels. Supply chain process models like factory direct shipment and vendor-managed inventory help us to achieve this balance.

What is the nature of collaboration between the businesses of Sony, namely, Film, TV and Home Entertainment, Video Games, Mobile, etc.?

We call this theme “Sony United” and it has been expressed more and more in the past few years. For example, Sony Pictures and Electronics have collaborated to make exclusive streaming content available on Sony TVs; Sony projection systems in movie theaters have been used to host multi-player gaming events in support of the Sony Computer Entertainment group; and Sony Supply Chain Services supports both the electronics and gaming divisions. From a supply chain perspective, we are starting to think about how to present one face to key retailers and potentially leverage areas of expertise across the different companies. For example, Sony Pictures has store-level fulfillment capabilities and VMI relationships built into their distribution network, so we now have a project within Sony Electronics to work with the Pictures supply chain team to explore joint operations.

Sir Howard Stringer, the CEO of Sony Corporation, has articulated a world of interconnected devices for a mobile consumer. How is the vision being implemented in your organization?

As devices become more interconnected and interdependent, so too do the supply chain challenges converge. We find that it is so important now that the communication and collaboration between product groups, as well as between sales and operations, is open and seamless. The Global Supply Chain Operations organization acts like a hub to connect these cross-functional teams and coordinate efforts that improve the whole company’s operations, much like connected devices improve the consumer experience.

Many consumer electronics companies are beginning to integrate services into their hardware business. What has been the strategy in your organization?

This is not a new concept for Sony; services to both consumer and business segments have been offered for many years. On the consumer side, there is Sony Backstage, a PC support service available through Sony Style stores as well as online. On the B2B side, there are many targeted service offerings to specific market segments. Also, you can think of the multiple avenues for content distribution and online communities like PlayStation Network as examples of the newer breed of consumer services.

What single initiative in the industry, in your opinion, could enhance the supply chain?

The definition of supply chain has been evolving over the past few years from traditional logistics, transportation, and manufacturing competencies to encompass demand planning and strategy, impacting the entire value chain to consumers. As such, it is hard to pinpoint a single initiative. Top priorities, in my opinion, would include how to address 1) outsourcing, 3PL, TMS, data analytics developments, 2) end-to-end real-time visibility & automation efforts, and 3) sustainability/environmental solutions.

Tags: no tags