Transforming to an Intelligent Digital Supply Chain with Microsoft

 

From the humble mouse in 1983 to the first iteration of the Xbox in 2001, Microsoft has a long history of developing the consumer electronics we know and love. As well as a long history, the “devices” or hardware branch of the Microsoft business model also has an incredibly complex supply chain with more than 35,000 active stock keeping units (SKUs) and 33 management and distribution centres serving over 122 countries.

2014 marked the start of a significant growth in the number of devices Microsoft were bringing to market and lead to a lot of uncertainties in how the business could effectively scale up to meet this need. Within a highly competitive business environment, Microsoft experienced pricing and margin pressures which lead to them having to take a closer look at their manufacturing, sourcing, fulfilment and after-sales costs.

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