By using this site, you agree to our Privacy Policy and our Terms of Use. Close
Aprisaiden said:
Hephaestos said:
less suppliers = less customisation = less quality/diversity
less suppliers = less companies in business = less jobs on the market

This is rather bad news, both for Sony's products and for the industry of electronics...

"
_ So what chip should we use for the PS4?
_ Well we just signed a contract for chips in the PSP... company rules says we have to use the same parts in all our products to reduce suppliers.
_ Cool it'll reduce costs... and programers will be familiar with it too.
_ Should we make the PS4 into a portable too? I mean the architecture will be adequate for it.
_ Good idea, like that we can use the same casing too.
_ umh... I don't like where this is going...
"

I don't think you understand what SONY means by suppliers.

 Here is an example of what SONY is doing

 Currently:
     SONY Electonrics Japan buys x amount of silicon off Company A
     SONY Computer Entertainment buys x amount of silicon off Company B
     SONY Electronics Europe buys x amount of silicon off Company B
     SONY Electronics America buys x amount of silicon off Company C
     SONY Computer Entertainment America buys x amount of silicon off Company D
     SONY Computer Entertainment Europe buys x amount of silicon off Company A
     etc.

     Now Company B might be selling the cheapest silicon -- buy only for companies that buy in huge bulk amounts. Overall SONY buys enough silicon to get it cheap off Company B, however with each division independantly buying silicon indepantly and none of them buying in large enough quanities to get large bulk buy discounts.

  After the change SONY is proberly aiming for:

   SONY Corp. buys x amount of silicon off Comapny A
   SONY Corp. buys x amount of silicon off Company B

 Such a method will save SONY money, make it easier to track where and who is buying silicon and best of all it simplifys the process.

 

I said bad news for the products and the industry, not for stockholders.

and sony doesn't just buy raw materials, they also buy components; those are the ones I targeted. They are often customised to the specific needs of the product. Lowering the number of suppliers and buying in bulk to reduce cost will lower the diversity of components bough, hence the specification of the final product.

for my less job example, that you showed yourself, sony only utilizing A and B instead of ABCD.

I'm not saying you said anything wrong, i'm just trying to make my point clearer ( cause apparently you didn't understand me)



OoOoOoOoOoOoOoOoOoOoOoOoOoOoOoOoOoOoOoOoOoOoOoO