High Tech

6 months late entry into the market can reduce profits by 33%

As the average life cycle for many product categories continues to shrink and margins get thinner, speed-to-market is a key differentiator in a highly competitive industry. Take the smartphone category. Typically, a phone only has a small window of premium profit opportunity because of its limited shelf life. Due to the need for speed as well as security, companies in the software, semiconductor, consumer electronic, wearables, wireless carrier and telecom equipment industries rely on timely and secure delivery to see profitable product launches. Plus, given the rapid pace of globalization, there’s a growing demand for supply chain visibility.

That’s why many high-tech companies count on UPS Proactive Response® Secure to provide 24/7 surveillance for their critical shipments. This one-of-a kind solution combines package intervention with proactive monitoring and has Flexible Parcel Insurance built right in to protect against unexpected expediting costs. In the event of a loss, it covers the full selling price of goods and not just the replacement value, significantly reducing the financial impact of disruptions.

Companies today don’t have the ability to pack warehouses with finished goods since inventory can depreciate or become obsolete within months of launch. They must keep inventory levels down and speed up collections to stay efficient. Otherwise, money that can be spent elsewhere, like on new product development or expansion, is tied up in inventory. To help free up working capital, Global Asset-Based Lending provides a revolving line by borrowing against foreign inventories and goods in transit. If liquidity is an issue, C.O.D. payment options can shorten the cash conversion cycle by accelerating payments.

Few industries in the world move as fast as high tech. Rely on UPS Capital® to keep up with the speed of innovation and global competition with our broad portfolio of products and services, proven industry expertise and global logistics capabilities.

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Change in the (supply) chain

Get insights from high-tech executives on key supply chain topics—including emerging market expansion, nearshoring trends, customer experience improvements and product lifecycle management.

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1. Quality Sciences, Inc, “Higher Speed to Market = Higher Profits”