Internet Technologies and Supply Chain Management (back to catalog)

OverviewSample 1Sample 2Sample 3Sample 4Sample 5About the Author

...Texas Instruments has recently implemented an extensive planning and supply/demand matching optimization tool using the Internet. Every two days they do a global supply/demand match for over 45,000 products produced in 56 factories worldwide. 70% of their customer orders are now online; they provide real-time order status information. Their system has factory-level planning optimization with global inventory visibility.

The results of this improvement are a two-week reduction in customer delivery times and an increase in factory utilization of 2%. A two-week reduction in customer delivery times is clearly beneficial from a competitive standpoint. Also, while the increase in factory utilization may sound small, the impact of such a change on profitability is much larger than 2% since one is earning additional revenue without any increase in corresponding production capacity costs. (This is a fair assumption because Texas Instruments' factories typically build to order, which means they are likely to sell what they produce.)

Placing their benefits in our framework:

Texas Instruments' Management Impact

  Cost Reduction Revenue Enhancement Speed / Efficiency
Within an Enterprise
Across the Chain Globally optimal supply/demand balancing

Increased factory utilization
Lead time reduction
Across Multiple Chains
Multiple Chains

We have not yet provided any examples of multiple-chain benefits. To offer one example, a Contract Manufacturer or EMS (Electronic Manufacturing Services provider) may need to purchase a standard component for multiple OEMs (Original Equipment Manufacturers - customers of the EMS)...

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SCM104 Specifications

Title: Internet Technologies and Supply Chain Management

Rating:
4.1 / 5  (1214 ratings)

Total Reading Time: Approx. 1 - 2 hours (for average readers)

Word Count: Approx. 10,800 words

Author:

Certificate: Counts toward Fundamentals of Supply Chain Management

Datasheet:  Download

Contents

  1. Getting Started
  2. Traditional vs. Net Model
  3. Framework for Internet Impact
  4. Example: Cisco
  5. Example: Dell
  6. Example: Adaptec
  7. Examples: Zara, Texas Instruments
  8. E-Business Relationships
  9. Spot Markets vs. Contracts
  10. Spot Market Simulation
  11. Requirements
  12. Web Services
  13. RosettaNet
  14. Future Supply Chains
  15. Conclusions
  16. Test Your Knowledge
  17. Feedback
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