Executive summary
The goal - Building speed. Cutting complexity.
Unpredictable product lifecycles coupled with continuously changing partnerships can lead to expensive and inflexible cost structures and supply chain models. Managing a globally dispersed supply chain can be risky. IBM can help you transcend traditional methods and transform your value chain to create a highly collaborative partner network.
The advantage - From consultation to collaboration
Electronics Value Chain Management (EVCM) from IBM and SAP can offer you consulting, applications and architecture to help reduce value chain inefficiencies. EVCM includes a powerful combination of tools, business processes and technologies, including:
- Business process transformation
- Business modeling
- Best practices
- Enabling technologies
- Strategy engagements
IBM and SAP can help build a strong case for your transformation, establishing detailed, effective processes based on leading practices.
The benefits - A blueprint for better business
EVCM from IBM and SAP follows a proven methodology to build a customized value chain transformation for your business. We can help you:
- Improve your operational effectiveness with the rapid execution of business processes.
- Enable a more accurate view of future demand.
- Enable collaborative planning and execution with your business partners to maximize throughput.
- Enhance forecast, capacity and demand information by collaborating with trading partners.
- Achieve business value through effective end-to-end value chain management.
Business view
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.
Technical details
The issues - Shorter process time, faster to market
IBM and SAP offer strategies to deliver a responsive supply chain, speeding your time to market. Electronics value chain management (EVCM) leverages IBM's hardware and software offerings to significantly improve your organization's operational effectiveness by integrating middleware to tie together a mix of systems, as well as IBM hardware to increase your supply chains reliability and availability.
The benchmark - Partner with leaders in thought and practice
IBM developed electronics value chain Management based on the proven methodology and business models that were used to successfully transform our own value chain. With our extensive knowledge and resources, we can help you develop and deploy a comprehensive value chain management solution.
- IBM brings expertise from many practices to help you design and implement your EVCM solution, including:
- 4,200 dedicated electronics specialists worldwide who have led thousands of electronics projects.
- SCM specialists
- Over 9,000 SAP professionals with an average of more than seven years of SAP experience.
- Our senior level consultants possess a minimum of 8 to 20 years of supply chain experience across various industries.
- IBM is the first organization to establish an SAP Center of Expertise in the U.S.
- IBM has implemented SAP for its own internal operations, resulting in a total cost of ownership reduction of almost US$11B.
- IBM and SAP have completed over 16,000 business installations in 138 countries.
The components - Tighten up the network of interaction
Electronics value chain management from IBM and SAP helps you identify gaps in your supply strategies, while offering the technology to support value chain management initiatives.
Supporting infrastructure:
- IBM WebSphere® Business Integrator for Electronics.
- Leading-edge Linux® and wireless capabilities.
- World-class IBM System server families and storage products.
- Relationships with independent software vendors, including E2open to enable on-time and on-budget deployment of collaborative supply chain processes through the E2open Integrated Network.
Available services include:
- Value case assessments.
- Trading partner preparation.
- Hub preparation.
- B2B software integration services.
- Back-end systems integration.
- Business process transformation to support multi-enterprise supply chain processes.
- ISV packaged application deployment.
The implementation - Value chain management in action
Panasonic wanted to improve their business responsiveness. After analyzing the company's value chain requirements, the IBM project team developed a detailed infrastructure design for a new business environment that improved their business performance management and capacity planning of the supply chain infrastructure, including:
- Improved scalability, reliability and security of Panasonic's e-business environment.
- Enabling the company to deploy additional catalogs and shopping items.
In another implementation, Sumitomo Electric needed to improve unfavorable purchasing conditions for raw materials, facilities and supplemental material for manufacturing, as well as inefficient operational processes. IBM implemented an Internet-based procurement and purchasing application which streamlined the process and improved performance.
The cost of ownership - Streamline operations and improve efficiency
Electronics value chain management from IBM and SAP can help you:
- Cut operating costs by 10-20% in many cases while improving scalability, reliability and security.
- Facilitate efficient and cost-effective resource deployment.
- Lower infrastructure costs associated with collaboration.
- Monitor parts inventory and enable just-in-time deliveries with RFID technology.
