The analysis of VIVOTEK Supplier chain, sale and conduct management

You can easily get the financial statement information from the below website. http://newmops.tse.com.tw/ search:3454
I will focus on Sales channel, supply chain and conduct management




According to financial statement, I can realize the top three customer are D-link, FONYTEL and Digital Data Communications Asia Co., Ltd




1.D-link






We analyze financial statement in 2005.

“IP CAM” includes the low cost, CMOS sensor and Fixed IP cam.
Average price is: NT$94,545x1,000/25,820 correspond to US$112

PTZ IP CAM means MPEG-4 CCD IP CAM
Avergae price is NT$163,240x1000/25,046 correspond to US$200.5
D-link focus on DIY market. I think they will choose low cost ip cam


2. FONYTEL
They purchase MPEG-4 CCD camera and target on 3G mobile phone market in 2005.
Avergae price is NT$ 56,197x1000/(7508+1500) correspond to US$191


3. Digital Data.
CCD Zoom IP camera average price is NT$ 4,980x1000/490 correspond to US$312
Low cost CMOS IP camera is NT$10,357x1000/3940 correspond to US$81



I can get the below strange result.
a. Low cost CMOS IP camera
D-link’s cost is higher than Digital Data but D-link’s purchase amount is higher than Digital Data.
b. MPEG-4 CCD IP CAM.
D-link’s cost is higher than FONYTEL.

Why did D-link get higher cost than others?
I don’t know.

Supply Chain.











Vivotek DO NOT product ccd camera so they will purchase from CCTV maker.
He will focus on compression module design. When they purchase ccd camera, they will combine their compression. That is ccd IP camera.
CCD camera price is approach US$31.5 (NT$1022/32.44). I think they could buy SONY high resolution board camera.



ViVOTEK start zoom camera product line after 2005. I feel they could buy all10x zoom camera from Mintron. Assume Vivotek’s purchase price is US$150, their total Qty for zoom camera is about 11K in 2004.
We can guess it is about 1K~2K zoom camera model per month.

Conduct analysis










The difference days between giving money to supplier and get money from customer is about 69.9 days
The revenue of VIVOTEK is about 900 million. The minimum working capital must be 900 million X 69.9/365=172million
The fact that you can get working capital information in the financial report is higher than 172million.