Evolution of the Mobile Phone Supply Chain: The Case of Ecuador

The cell phone industry is growing at a vertiginous pace. It has a life-changing impact on individuals and businesses in developing countries, where it can make up for the lack of infrastructure. In Latin America, the cell phone supply chain faces challenges specific to developing countries. Success in these environments requires creative solutions and adaptable supply chains. Ecuador is no exception, and the rapid evolution of the industry over the last decade has led to various changes in the supply chain of mobile devices. This thesis characterizes the supply chain challenges faced by the cell phone industry in Latin America. Key challenges characterizing emerging markets are highlighted. By using the case of a leading wireless network service provider in Ecuador, the document explores changes in the supply chain structure resulting from the evolution of its relationship with a supply chain solutions company, Brightstar. This evolution is represented by three different cell phone supply chains. The supply chains provide examples of responses to the supply chain challenges. The performances of the supply chains are compared based on the notion of responsiveness. To this end, system dynamics is used as a tool to analyze the different systems and the dynamics in action. Based on this analysis, recommendations are formulated regarding the current supply chain structure. Thesis Supervisor: Edgar Blanco Title: Research Director, MIT Center for Transportation and Logistics Thesis Supervisor: Charles Fine Title: Chrysler LFM Professor of Management and Engineering Systems