A pioneer in wireless communications, motorola has transformed the cell phone into an icon of personal technology—an integral part of daily communications, data management, and mobile entertainment. Motorola designs, manufactures, sells and services wireless handsets and licenses a vast portfolio of intellectual property.

STU REED, President of Mobile Devices, serves on the Executive Advisory Board of the Grainger Center for Supply Chain Management. He is responsible for delivering best-in-class mobile experiences through design, innovation, and creation of compelling mobile solutions for business and consumers globally. He gave us an inside look at the supply chain involved in getting RAZR phones into the hands of approximately 50 million U.S. customers.

Design and Engineering

“We are the engineers. We are the artists. Our development and engineering operations are spread across the globe, but the prime location for development of the RAZR is in our headquarters based in Libertyville, Illinois. The mobile phone industry is characterized by new, unique, and complex technologies. It is extremely difficult to predict demand and ensure adequate capacity to supply and produce. We mitigate the risk of short product cycles and the challenges posed by rapidly changing technologies by improving our lead times and by forming development partnerships with suppliers.”

Marketing and Demand Generation

“Marketing and demand generation are coordinated from our Chicago-area headquarters with our sales offices and network, covering 26 countries around the globe. Our marketing and demand generation teams work closely with the various communication providers (for example, Verizon, T-Mobile, Sprint, AT&T) to manage fluctuations in demand.”

Sourcing and Assembly

“RAZR components are sourced from various locations in Asia (China, Japan, Taiwan), and the packaging is sourced from Texas. To ensure continuous supply of commodity materials, we dual source and partner with suppliers to ensure priority status. Except for the battery, charger, and packaging, RAZRs are assembled in China. The communication providers offer various types of customization such as colors, logos, and software, which introduce some risk into the supply chain. The providers are extensively integrated in our supply chain planning process, which helps us mitigate some of the risks related to product customization.”

Distribution

“For the U.S. market, we ship or air all RAZRs to the Motorola distribution center in Fort Worth, Texas. The devices are picked up by the various communication providers and delivered via truck to their respective distribution centers.  RAZRs finally reach customers through communications providers’ stores or at retail outlets.”

Customers

“Motorola offers customers innovative product designs that deliver "must have" experiences, such as mobile music and video — enabling seamless connectivity at work or at play.  “In a highly competitive marketplace with constantly evolving technologies, we must be maniacally focused on exceeding customer expectations for design, quality, and service.”