Intel IT IT Best Practices Supply Chain and IT Business Transformation January 2012
Transforming Intel’s Supply Chain to Meet Market Challenges Executive Overview
Intel IT has helped to increase supply chain responsiveness and productivity while reducing process cycle time and inventory levels.
To support an efficient and responsive supply chain, Intel IT works closely with many teams throughout Intel to formulate a strategy that integrates IT solutions across all levels. While manufacturing technology and operations are at the center of Intel’s business, Intel recognizes that supply chain capabilities are critical to meeting market demands. These demands include the following: • Increased product mixes and volume • Shorter delivery times • Increased responsiveness to change requests • More efficient and cost-effective performance • Increased competition as new products are introduced planning processes, Intel IT has helped to increase supply chain responsiveness and productivity while reducing process cycle time and inventory levels. • Greater than a 50-percent reduction in the time it takes to ramp up a new manufacturing process • 65-percent reduction in order-fulfillment lead time • 50-percent reduction in order-to-delivery time • 3x increase in responsiveness to customers • 32-percent reduction in inventory • 21-percent increase in the number of CPU units produced per headcount and a 16-percent increase in CPU units produced per capital dollar spent Intel’s accomplishments in supply chain management have been recognized across the supply chain industry, as our rise on the Gartner Supply Chain Top 25 rankings demonstrates. Intel IT will continue to implement IT-enabled supply chain solutions to transform Intel’s business, helping to increase Intel’s competitiveness and market position.
Russ Hensley Supply Chain Strategic Product Line Manager Intel IT Kumar Muthusami Revenue Demand Management Intel IT KC Quah Supply Network Capability Strategic Planner Intel IT Jian Wu Enterprise Architect Intel IT Mark Zinsli Customer Fulfillment Product Line Manager Intel IT
• Increased environmental sustainability • Changing government regulations Intel IT helps Intel’s supply chain meet these demands by partnering with the internal business teams to re-engineer business processes and deliver more efficient information systems. These systems are associated with multiple aspects of supply chain management, including planning, demand forecasting, production planning, order fulfillment, warehousing, and logistics. Through several initiatives in the last few years, including standardizing Intel’s enterprise resource planning (ERP) platform, developing automation and business intelligence solutions, and simplifying supply chain
IT@Intel White Paper Transforming Intel’s Supply Chain to Meet Market Challenges
Executive Overview............................. 1 Background ............................................ 2 Just Say Yes Program: 2005 to 2007 .................................. 3 Just Say Yes Program: 2008 to 2010 .................................. 4
Manufacturing technology and operations are at the center of Intel’s business. Intel factories turn raw silicon wafers into complex and advanced integrated circuits. The manufacturing process produces integrated circuits that are delivered to customers as finished goods or subsequently used in the assembly of products such as CPus, graphics processing units (gPus), memory units, communication controllers, motherboards, wireless devices, and solid-state drives (Sdds). Intel recognizes that its supply chain—the combination of people, technology, processes, information, and resources required to turn materials and components into finished goods and move goods and services to customers—is critical to Intel’s success. The importance of the supply chain in Intel’s continued manufacturing leadership and business...