Om Case Kulicke and Soffa Industries, Inc
Om Case Kulicke and Soffa Industries, Inc
INDUSTRIES, INC.:
DESIGNING A SUPPLY
CHAIN NETWORK
GROUP 9
SIDDHARTH PAL
SUDHANSHI PARAKH
TANYA SAXENA
RITUPRIYA
SHAHNAZ BEGUM
Introduction 2
K&S Inc was founded by Fred Kulicke and Al Soffa in Fort Washington,
Pennsylvania in the year 1951
Israeli site itself hold 50% global market share in semiconductor wire
• Primary Markets for K&S products and services included Asia, the United States
and Europe
Global sales Percentage 3
Asia is offering larger growth opportunities that would reduce their supply
risk
• The opening of new markets & competitor’s new plants in Asia
redesigning
• Awareness of the occurrences of the natural disasters can affect the company’s
Environmental Factors capability performance in terms of logistics
Legal and Political Factors • Each country imposes different regulations and tariffs
• The presence and lack of infrastructures in target country affects the technological
Technological Factors development of the company
• The GDP, manufacturing wages, exchange rates, inflation and economic growth
Economic Factor must be considered
• Every country has its own different cultures, lifestyles, languages which affect the
Social Factors business operation
Advantages and disadvantages of the 6
different locations
LOCATION ADVANTAGES DISADVANTAGES
Yokneam, Israel •Presence in Israel for over 30 years •Heavy taxation (approx 43% of GDP in 2000)
•The history of K&S here was long and marked its reliability and
achievements
•Having one site would provide the flexibility to share overhead
Jordan •Proximity to Israel and lower labour costs •Diplomatic relations between Arab-Israel
•Duty-free transfer of goods to USA because of QIZs •Uncertainty regarding advancement of infrastructurel
•Ease of finding workforce
Singapore •Well trained workforce and excellent infrastructure • High cost of living
•Political, economic and social stability
•New initiative- I21
•Existing production site with machines and logistic centre
China •SEZs and tax incentives for foreign investors •High infrastructural investment
•Low production costs
•Low labour costs
•Low cost of living
New location based on financial 7
consideration
Location Investment cost (in Efficiencies (units/ Shipping cost to Asia Shipping cost to
millions of U.S. worker/ hour) United States and
dollars) other int’l.
consideration
Location Investment cost Labour hours required Labour cost Total Total Total cost Total
(million dollars) (hours) (million dollars) shipping shipping for labour cost for
cost to cost to US and 3 years
Asia and other shipment
countries
challenges
challenges
THANK YOU