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In the electronics industry, OEMs are challenged to deliver products and services profitably in an environment of highly unpredictable demand and short life cycles. To address these challenges, innovative OEMs are implementing supply chain strategies that minimize their role in the physical supply chain by outsourcing much of the value-add to partners, in many cases eliminating all OEM “touch points.” As the supply network extends overseas, the responsiveness to changes is dramatically impacted.
These new models require synchronization across several tiers of the supply chain. Until now, this synchronization has proven to be difficult. Existing systems, originally deployed to manage internal operations, were not designed to manage processes in the extended enterprise where effective multi-party collaboration is critical. In addition, heterogeneous IT capabilities among supply chain partners make the requisite level of communications difficult to establish. OEM/brand owners need the ability to shape demand and understand its impact on supply, revenue, and margins and then execute and monitor this plan across the distributed supply chain network.
Volatility in demand, configurable orders, and long supply lead-times, as well as cost and margin pressures from the direct-sales business, are driving supply chain innovations for high-tech OEMs. In order to effectively compete and stay ahead, companies are adopting solutions leveraging the new generation of supply chain management, which enables them to adapt their processes at the rate of business change.
i2 new-generation solutions for OEM companies can enable best practices including the ability to:
- Establish a single version of the truth across distributed operations
- Achieve significant improvements in customer service levels
- Reduce overall supply chain inventory
- Increase productivity
- Understand the entire demand picture
- Align demand to supply across distributed operations
- Achieve real-time order synchronization
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Supply Collaboration
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| Multi-Tier Supply Collaboration |
Distributed and Automated Procurement |
Liability Management |
Environmental Compliance |
Component and Supplier Management |
Transportation Bid Collaboration |
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| Supply Chain Design |
| Strategic Sourcing |
Inventory Optimization |
Network Optimization |
Total Landed Cost Analysis |
| Supply Chain Planning |
| Sales and Operations |
| Data Management |
Master Planning |
Profit Optimization |
Factory Planning |
| Replenishment Planning |
Spare Parts Planning |
Transportation Planning |
Scenario Planning |
| Supply Chain Execution |
| Product Sourcing |
Demand Supply Balancing |
Allocation Planning |
Real-Time Order Promising |
| Multi-Tier Supply Chain Visibility |
| Transportation and Distribution Management |
| Distributed Order Execution |
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Customer Collaboration
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| Channel Management/ VMI Solutions |
Order Configuration |
Order Pricing |
Distributed Fulfillment |
Virtual Direct |
Returns Management |
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| Master Data Management |
Product Info Management |
Business Process Execution |
Planning as a Service |
On Demand/ Hosted |
Performance Management |
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Supply Chain Infrastructure
Agile Business Process Platform |
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