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Inside Microsoft’s Xbox Supply Chain Eco-System
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Jun 13, 2006, 12:29

Ken Lewis, Microsoft director of logistics, keeps track of all products in North America that bear the Microsoft name, may they be Xbox games, and consoles, Office Windows software, keyboards, or computer mice.

Lewis will reveal the systems and complexities of running the software/entertainment giant’s supply chain as a co-panelist at the Entertainment Supply Chain Academy session entitled:  “End-to-End Video Game Supply Issues: Who Wins in this Game?” Day-One, June 20 at 11 a.m.

Lewis will explain how the Xbox supply chain was complicated by Microsoft contracting more than 20 manufacturers in China like Flextronics, as well as how strategic partners such as authorized disc replicators Technicolor and Sonopress, as well as trucking logistics specialist cfm, helped coordinated launch efforts.   Elaine Singleton of Technicolor and Paul Scott of cfm will be joining Lewis on the panel.

“We design the product and we outsource the supply chain to strategic partners,” said Lewis.  With Xbox, Microsoft saw “the need to “create an ecosystem” that could be utilized by hundreds of game publishers and delivered to 10,000 storefronts, he explained.

Last year’s launch of the next-generation Xbox 360 console saw Microsoft and its partners improve overall performance in light of ever-shortening lead times to get the product to retail.

Lewis conceded that Microsoft and the videogame industry in general could improve its sales forecasting and “what-if” modeling to ensure adequate in-store stock. He believes that much of the VMI tools currently in use were developed with the movie studios in mind for DVDs, and would like to see such solutions tailored for the game busines



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