This customer managed their forecasts with a highly manual approach that relied heavily on disconnected spreadsheets, the clunky Adexa system and emails. For the supply side, inventory planning, order planning, and scheduling, processes were fully manual and required extensive co- ordination given the outsourced fabless model.
o9 Digital Brain for Semiconductors
A global technology company that designs and manufactures semiconductors and software, selling to electronic design engineers and manufacturers in markets worldwide.
Sustainability Impact
Reduction of waste due to a decrease in overproduction and the avoidance of expedites.
Business Scope Challenges
Demand Planning
Demand planning processes were not agile enough and lacked high accuracy levels.
Opportunity
With o9‘s platform, this company was able to seamlessly create forecasts for all time horizons — weekly, monthly, quarterly, and annually — addressed in a single solution for both units and dollars.
Inventory Management
Wafer inventory was difficult to manage and often too high as a result of the large dependency on manual planning.
Opportunity
With o9, it became possible to improve the planning process for buffer planning and wafer planning on a fully integrated cloud native platform, which allows for more efficient and agile inventory management, reducing wafer inventory.
Order Promising
Order commit accuracy was poor, since overall planning was not accurate and did not take into account constraints and business rules.
Opportunity
With the o9 Solver Capability, constraints and business rules, such as customer specific configurations, sourcing splits, inventory sweep, etc., were modeled into the planning process to make the overall planning more accurate and increase order promising performance.
Value Delivery
Key Functionalities Implemented
o9’s Enterprise Knowledge Graph was used to optimize demand, buffer (MEIO), wafer, and supply planning. Moreover, an easy adoption was provided using the o9 Excel UI. Admin users can now easily manage master data that is key for planning (EOL dates, transition items, product and customer attributes).
Systems Replaced
Adexa, homegrown solutions and Excel.
Customer Benefits
Success Factors — 3 reasons why o9 was selected
- End-to-End integrated platform with high level of customizability.
- Mature and sophisticated demand and supply planning solutions.
- Highly customizable PO release workflow by leveraging o9’s highly differentiated Digital Twin.
KPI Impacted
- Reduction of non-standard supply chain cost (flex and logistics).
- Significant inventory improvement.
- Reduction of lost sales.
White paper
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