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Global Manufacturer Manages Disruption, Nimbly Adapting to Changes in Corporate Strategy
Technology Category
- Application Infrastructure & Middleware - Data Exchange & Integration
- Platform as a Service (PaaS) - Connectivity Platforms
- Platform as a Service (PaaS) - Data Management Platforms
Applicable Industries
- Electronics
- Semiconductors
Applicable Functions
- Business Operation
- Quality Assurance
Use Cases
- Inventory Management
- Predictive Maintenance
- Process Control & Optimization
- Supply Chain Visibility
Services
- Cloud Planning, Design & Implementation Services
- Software Design & Engineering Services
- System Integration
The Challenge
The global semiconductor manufacturer faced several challenges as it transitioned from in-house to fabless manufacturing. The primary issues included maintaining manufacturing visibility, inaccurate and slow inventory reporting, increased scrap, and missed customer commitments due to yield issues. Additionally, the company struggled with overpayments for external services due to complex, manual contract reconciliation processes. These challenges were exacerbated by siloed systems that hindered timely and accurate reporting, raising the risk of regulatory non-compliance and impacting profits.
About The Customer
The customer is a global semiconductor manufacturer with revenues exceeding $5 billion. The company operates a complex network of over 30 factories and 40 distribution warehouses. Seven years ago, the company began a transformative journey to shift from 90% in-house manufacturing to a predominantly fabless model. This transition was driven by the need to adapt to new competitive models, technology advances, and changing customer preferences. The company also aimed to leverage mergers and acquisitions to innovate, access new markets, and achieve economies of scale.
The Solution
The company selected e2open’s Manufacturing Collaboration application to address its challenges. The e2open platform connected to the firm’s underlying systems, collecting, cleansing, and harmonizing manufacturing, quality, and inventory data. This created a single source of truth for all business decisions and provided a holistic view of inventory across the entire operation. Automatic updates and closed-loop integration between systems ensured that all decision-making was based on the latest information. The platform enabled finance to gain timely and accurate reporting of inventory for compliance requirements and increased productivity by automating labor-intensive processes. Operations gained visibility into product quality and yield issues early in the manufacturing process, allowing proactive steps to reduce scrap and ensure product availability.
Operational Impact
Quantitative Benefit
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