Learn how IBM implemented supply chain executive software-as-a-service to control request / supply execution, inventory and replenishment across its global supply chain, and incrementally scale the solution as more supply chain cronies arrive upon board.
IBM A Faster, Leaner, More Efficient Global Supply ChainIBM aims to practice what it preaches. The company's forward preserve of abundantly automated processessuch as order management, encouragement requests and OEM manufacturing exploit ordershas served to supplement customer satisfaction and in force efficiencies. And more than the years the company has remained on the go to continuous enhance through the intelligent application of supplementary technologies, becoming a model for a thoroughly automated enterprise using the most advocate supply chain solutions and practices. IBM defines the next-door level of concern process efficiency as an on-demand model: "An enterprise whose business processes can respond similar to quickness to any customer demand, publicize opportunity or uncovered threat." This model requires seamless end-to-end matter process integration of internal IBM systems even if extending into key partners, suppliers and customers.THE CHALLENGEWith one of the largest and most puzzling supply chains in the world, IBM spends $41 billion annually on orders for more than two billion component parts a year, full of life
with 33,000 suppliers and 45,000 event partners.
"IBM has long focused upon creating and building an integrated, end-to-end supply chain," says Kevin O'Connell, IBM's director of manufacturing and procurement processes. "Now we wanted to upset it occurring to further levels of collaboration. To achieve our on-demand goals, we needed to extend integration of matter processes across a multi-tiered supply chain and into customer and assistant systems as well."
IBM realized that their in-house supply chain system was not sustainable. later their legacy system, IBM relied upon suppliers' and partners' reports and government systems for visibility into its own supply chain. Sourcing assent by Electronics Manufacturing services (EMS) providers for IBM core suppliers was nothing near to real time. Instead, IBM operated in a reactionary mode, relying on EMS self-reporting and supplier end-of-quarter information.
After elongated analysis, IBM certain that it needed an industry-standard supply chain handing out answer that allowed for synchronization of demand and supply and visibility into Tier 2 and 3 suppliers and bargain manufacturers, for every IBM global manufacturing sites and divisions. The solution had to be lithe and robust satisfactory to withhold shifting customer request scenarios taking into consideration proactive supply/demand planning.
THE SOLUTIONIBM turned to E2open to provide two customer-proven supply chain dealing out solutions:
- E2open request / Supply Synchronization Solution: Enables IBM to desirability and reply quickly to request and supply changesquickly flagging imbalances and potential shortages. These capabilities allow IBM to attain its seek of building an integrated end-to-end supply chain that responds to request and supply changes brusquely and accurately.
- E2open Multi-tier Visibility Solution: Provides Tier 1, 2 and 3 suppliers when consolidated visibility into forecasts, commits, aggregate order quantities and inventory positionsso each tier of the supply chain can track supply chain ability and respond speedily to imbalances, errors and shortages. The scope and severity of this visibility is indispensable to high levels of supply assurance.
Working seamlessly together, the E2open supply chain dispensation solutions provide IBM and suppliers as soon as a consolidated view of customer demand, straightforward supply and any imbalances. They allow IBM to proactively govern request / supply execution, inventory and replenishment across IBM's global supply chain by providing a more accurate view of supply positions. Through use of the suggestion aggregated by the E2open solution, all supplier tier has the matter data they infatuation to create dynamic supply chain decisions.
THE RESULTSThe answer currently extends across 37 manufacturing facilities and 10 replenishment (VMI) foster centers, representing more than 85 percent of IBM's annual manufacturing procurement expenditures. It provides both IBM and Tiers 1, 2 and 3 suppliers a consolidated view of demand and genial supply.
With the E2open solution, IBM is accomplished to proactively run demand / supply execution, inventory and replenishment across its global supply chain, and is clever to incrementally scale the solution as more supply chain buddies come on board through acquisitions and expansions.
IBM achieved certainly quick time-to-value similar to curt integration and deployment across global sites and tiers of suppliers, lowered sum cost of ownership, streamlined operations, and increased responsiveness and adaptableness within their supply chain. IBM estimates a 50 percent savings upon deployment and operations costs higher than its existing solution and alternative approaches. situation service include:
- Reduced supply / demand planning become old from 45+ days to 10 days
- Increased tug replenishment levels to 85 percent
- Improved outbound on-time delivery rates to 90 to 95 percent
- Improved inventory turns more than 42 percent
- Achieved period to lead of less than nine months
These solutions helped IBM in its quest to build a extremely responsive supply chain that can meet changes in customer demand tersely and efficiently.
ABOUT E2openE2open is the leading provider of supply chain supervision software-as-a-service for visibility and run greater than global supply networks. Industry leaders that aptitude their supply chain considering E2open add together Agere, The Boeing Company, Hitachi, IBM, LG Electronics, Matsushita Electric Industrial (Panasonic), Motorola, Seagate Technology, Solectron and Wistron. E2open's software-as-a-service model offers faster payback, larger ROI and shortened risk while requiring less IT and thing resources. beyond 15,000 companies worldwide currently use E2open. Headquartered in Redwood City, Calif., E2open is a privately held company.
For supplementary information on how E2open can back up you in attainment visibility and rule higher than your profound supply chain, make smile visit our website at www.e2open.com or gain access to us at 650.381.3737.
Copyright 2007 E2open, Inc. all rights reserved.
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