AITAD

: development of a supply chain strategy for a start-up in the electronic manufacturing services industry

Abstract

Founded in 2018, AITAD is a developer of embedded AI. Embedded AI represents a shift from cloud- to device-level artificial intelligence and, as a supply product, has the potential to fundamentally change end-product applications across a wide range of industries from consumer electronics to medical devices. To bring this radical innovation to market, however, AITAD faces a mammoth project: developing a supply chain in the incredibly complex and opaque microelectronics sector. This task is made even more difficult by recent supply chain collapses due to the covid-19 pandemic, as all players, global champions, and startups alike, are suffering from a shortage of electronic components.To overcome these difficulties, three considerations are key: AITAD's position as a supplier of a complex B2B system component, its role as a start-up company, and the unique requirements of the EMS-industry. Since academic research in this area is surprisingly weak, the underlying study examines eight case companies, some of them start-ups, some EMS-providers, and finds that the greatest common denominator in their geographic proximity to end customers. In addition, responsiveness and reliability are cited as the most important supply chain attributes. To achieve these, a radical focus on the differentiation factor by outsourcing production and procurement activities to a complementary partner is recommended. As smaller companies in the German EMS-industry are currently squeezed by larger companies aiming to penetrate lucrative market niches, this partnership has the potential to be beneficial for both the partner and AITAD.

Date of Award	4 Jul 2022
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Rute Xavier (Supervisor)