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Electronics value chain management from IBM and SAP

Executive summary Business view Technical details
The goal
Make every link flexible and responsive
How are you managing the pressures of supply and demand in today’s complicated electronics arena? Are you in need of improving operational effectiveness? Electronics value chain management (EVCM) from IBM and SAP can help you enable rapid responses and achieve better asset utilization with consulting services, value chain management applications and back-end technology to support the process.

The advantage
Two leaders. One powerful solution.
IBM developed EVCM based on the methodology and business mode we used to successfully transform our own value chain, with insights including:
  • Understanding the benefits of electronics value chain management, proven within our demanding electronics manufacturing operations.
  • Our consultants are experts in value chain strategy, organizational change and business design—their detailed knowledge of the electronics industry enables them to develop comprehensive value chain solutions that can address your unique requirements.
  • The IBM Electronics Center of Competency works to deploy state-of-the-industry best practices and capabilities for consumer electronics, microelectronics, medical devices and industrial equipment.
  • Our global integration center for electronics in Yamato, Japan provides architecture and independent software vendor integration.

The benefits
Drive the market
EVCM offers the strategic planning, select applications and back-end technology necessary to streamline key functional areas, including:
  • Procurement
  • Enterprise planning and execution
  • Logistics and fulfillment
  • Extended enterprise collaboration

IBM and SAP can help you achieve business value through effective end-to-end value chain management, including:
  • Value chain optimization applications to plan, sense and react quickly to changing business conditions.
  • Enhanced enterprise collaboration from business process optimization to supporting tools.

The benefits of streamlining your business with value chain management can include:
  • Lowered infrastructure costs associated with collaboration.
  • Creation of commonality in parts and suppliers.
  • Control of inventory by facilitating the supply chain “talking” to the demand chain.
  • Cuts in transaction costs by integrating with public and private exchanges.
  • Delivery of products to market faster while minimizing risk and capital investment.

The approach
Proof in profitability
When Philips Consumer Electronics needed to quickly improve customer satisfaction and business profitability, they looked to IBM to create a future-focused supply chain strategy.

We launched a multifaceted initiative to address all process and infrastructure elements of the supply chain from procurement through manufacturing and order fulfillment. Best-in-class warehouse and transportation management were integrated in to Philip’s SAP system:
  • Production schedules now meet inventory specs—improving customer satisfaction while avoiding penalties for missed delivery dates.
  • Savings in transportation and warehouse management is expected to exceed US$8M.

The financial advantage
Greater efficiency, lower costs
Electronics value chain management from IBM and SAP can help your company save money by streamlining your value chain. We can help you:
  • Reduce operating costs by automating buy and supply processes.
  • Increase efficiency by integrating business processes such as sales forecasting and inventory management.
  • Decrease production cycle by building a responsive and flexible supply chain.

Next steps
 
Questions about this solution? Contact an IBM-SAP specialist.



Case studies
Philips Semiconductor – manufactures innovative inventory management processes