High Tech

6 months late entry into the market can reduce profits by 33%1

As the average life cycle for many product categories continue 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, wireless carrier and telecom equipment industries rely on timely and secure delivery to see profitable product launches. Plus, given the rapid pace of globalisation, there’s a growing demand for supply chain visibility.

Another challenge for high-tech companies is the rapidly changing customer and market demands. Companies today don’t have the ability to pack warehouses with finished goods since inventory can depreciate or become obsolete within months of their launch. They must keep inventory levels down and speed up collections of what they are owed to stay efficient. Otherwise, money that can be spent elsewhere, like on new product development or expansion, is tied up in inventory.

Few industries in the world move as quickly 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.

SOURCE: Quality Science, Inc ‘’Higher Speed to Market = Higher Profits”