High Tech and Electronics
Globalization has become a major factor in the electronics manufacturing industry. Many products are being designed in one country, manufactured in another, and assembled in a third. The Western electronics industry tends to be focused on high-end products, such as computers and microchips. What’s more is that many components of final products manufactured, are produced elsewhere and shipped to Western plants for final assembly.
The rapid pace of innovation in electronics technology makes for a constant demand for newer and faster products and applications. This demand puts a greater emphasis on R&D typical in most manufacturing operations. Tight PLM and collaboration between the different nodes in the supply chain is crucial to survive in these dynamic environments.
This increasing trend in ever changing customer demand causes the propagation of the flexibility requirement through the whole supply chain. Communication between the different levels in the chain is time consuming and has a negative impact on reactivity. This is especially true for changes in requirements or failures in deliveries of sub-assemblies and/or components. Because delivery of the end-product relies virtually 100% on direct shipment, assembly line interruptions are unacceptable. So the electronic industry has unique supply chain characteristics which create challenges to network planning, distribution and production planning, scheduling and execution control problems.
ICRON helps electronic industries to answer these market challenges in ways that provide a long term advantage. ICRON provides a very flexible business modeling, planning and scheduling environment which directly addresses the unique requirements for collaboration:
- Simultaneous consideration of material and plant resources:
- Ability to run ‘’what if ‘’scenario analysis
- Utilization of resources and subcontractors
- Optimization algorithm comprising constraints and business goals:
- Optimize production, transportation, distribution and component supply
- Optimize the planning and management of service parts
- Real-time plan and schedule creation with net change regeneration:
- Production schedules based on constraints for resources and components/materials
- Fast assembly line changeover support
- Real-time decision support for:
- Plant production sources for products
- Plant capacity levels
- Modes for transport
- Sources for purchased materials
- Inventory minimization
ICRON gives decision makers increased control and visibility across the entire supply chain for an overview of the entire supply network so that areas of potential improvement can be identified and realized. This means a Unified Planning across departments, the enterprise and ultimately across the total Supply Chain. Using a Start Small Scale Fast approach you are able to do a 100% Integrated Scenario-Planning enabling to gain a faster time to market or even enabling a segmented market approach fully optimally scheduled.
Next to financial benefits such as:
70-90% reduction in planning cycle time;
25-35% improvement in forecast accuracy (collaboration and forecasting);
20-30% reduction in excess inventory (improved forecasting);
25-30% reduction in stock-outs (high customer service);
30-50% improvement in on-demand Delivery Capacity
ICRON’s platform gives companies in the High Tech industry many other benefits such as:
- Inconsistency Analysis between different forecast sources
- Automated Panel selection for products based on material availability and supply
- Optimization model to determine optimal production and material procurement plans to satisfy sales and forecasts
- Forecast accuracy analysis
- Daily Update of operational plans based on forecast and realized sales
- Highly improved Forecast Accuracy
- Increased response rate to changes in forecast and material availability
- Improved procurement plans; reduced overstock, stock out and inert material
- Improved product mix design for reduced production costs
- Increased profitability and operational efficiency
- Rapid scenario-based analysis capacity
- Longer horizon for forecast analysis
These benefits and more leading to a revenue and margin increase of a minimum of 5%.
100% fit: Using the Distributed Planning Concept it allows a 100% fit since all stakeholders will be able to contribute and participate in the Company Planning. It certainly also allows Scenario Planning up to the greatest granularity.
Unified Planning: In the High Tech Industry it is extremely important to have an overview of all departments when planning. The demand can be very cyclical where Inventory uses expensive components. Only with a 100% Unified Planning one can optimize strategy to Execution.
Distributed Planning: Making departmental planning optimization and yet being able to link and coordinate all of these planning environments in to one integrated planning using all constraints. This is a unique and nowhere to be found capability of the ICRON Distributed Planning Solution.
Continuous Optimization: ICRON helps you in creating the right planning and decision making but also in managing the disruptions during the execution of the planned such as: material shortages, employee availability, plant availability, production schedules, demand volatility, specific customer needs and shortage of expensive components.
Visibility and Control: Enhanced Supply Chain visibility improves industry wide collaboration. This leading to cost reductions and improved customer responsiveness.