Supply Chain Insights Global Summit 2013 - Leadership in Action - Tony Romero from Intel Corporation

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Supply Chain Leadership in Action: Intel Corporation

Intel is an industry leader in supply chain planning, customer fulfillment, logistics and the building of supply chain talent. Tony will share insights on the building of global processes to sense and respond to customer needs and improve supply chain resiliency.

Tony Romero, General Manager of the Customer Fulfillment, Planning and Logistics Group (CPLG) for Intel Corporation.

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  • Technology LeadershipLeading Manufacturer of Computer, Networking & Communications Products9 Fabs in 4 countries; 1.1Bu+ HK+MG shipped; 14 nm fabs ramping80,000 technical roles, 10,400 Masters in Science, 5,200 PhD’s, 4,000 MBA’sManufacturing Scale166 Sites and 579 Buildings in 63 Countries$54B in Annual Revenues from Customers in Over 120 CountriesOver 100,000 EmployeesAgile and Responsive Supply ChainWorld class supply chain: Gartner rating from 16 to 11 to 7 to 5 in 2013Best in industry have 77% Customer Delight, semiconductor average is 53%Excellence in Supply Chain Continuity during global disruptionsSocial ResponsibilityRanked #46 on Fortune’s 100 Best Companies to Work For ListInvests $100 Million Each Year in Education Across More than 70 CountriesThe Single-Largest Voluntary Purchaser of Green Power in the United StatesMore than One Million Hours of Volunteer Service in Our Communities in 2011
  • Intel’s Technology and Manufacturing Supply Chain is vast and reflects the SC complexity of a global presence.On the Sourcing and Procurement side of the business, we are managing upwards of 10,000 suppliers across 100 countriesOur Technology and Manufacturing Engineering team builds and ramps our fab network consisting of 9 fab and 7 assembly test facilities.All of this SC infrastructure churns out over 5K unique products that we ship to over 3K locations annually.From a volume perspective, we are managing upwards of 1 million orders a year with nearly 3M unique shipments.So orchestrating the complexities of this is no small challenge and it’s never been more important to leverage these collective assets as a competitive advantage for Intel.
  • Internal Alignment (Partnership) Inward facing alignment and partnership Focused on addresses lateral process across different functional group within Intel – SMG, MMBP, CPLG, Fab/ATM Network Be more efficient Result: Got more efficient, but lacked strong external results, not world class recognized supply chainOutward Facing Responsiveness (Just Say Yes Campaign) Customer Responsiveness and Delivery Performance Created strong common goals across function business organizations Focused on customer perception of performance – responsiveness and delivery performance Was a turning point for Supply Chain improvements Gained global recognition for supply chain improvements Gartner #16DetailsJUST SAY YESExcellence in the supply chain is not just a nice-to-have feature, it's critical to have it, especially in semiconductormanufacturing where complexity is part and parcel of the process. Unfortunately, such a lofty state wasn't always the caseforIntel.From Intel’s perspective, customer responsiveness, inventory optimization and asset utilization are the three components of a top-notch supply chain. An unwanted situation is for these elements, or the people managing them, to compete rather than work together.. That was sometimes prior to our Just Say Yes supply chain transformation. Take responsiveness to customer demand, for example. We built a metric called "percent-yes-in-one-day," While not a standard supply chain metric, it was designed to track change requests: customer demands to alter product orders in some manner, cancellations, swaps, whatever. The metric reflects "how many of those change-order requests that we said 'yes' to within one day." Not many, as it turned out. Something else - something internal - had to change.In 2007, we instituted a SC program called "Just Say Yes." It was the beginning of radical shift in the supply chain paradigm at the company. And now? Customer responsiveness has tripled, order fulfillment lead-times have improved by 25 percent and delivery to customer dock "has gone up by several tens of units and is at world-class levels now."The most important thing, is that the results occurred while decreasing inventory 45 percent from peak levels set in 2006. "It's a pretty amazing accomplishment. It's been a long and difficult journey. The paradigm shift radically affects the way we think about the supply chain.“ -Supply Chain Brain, May 7, 2010Next focus is cost, speed, agility and new market supply chain excellence
  • Order Fulfillment Lead Time = From the time a customer places an order until the time it hits their doc.Cycle Time – The time it takes us to move material from Customer Forecast (initial Demand signal) to Customer Dock (Delivery)Delivery Performance AMB – Perfect Order = Arrives on the right date, in the right quantity, with quality you expect (paperwork, damage, labels)
  • The great supply chains are customer-driven or demand-driven. It’s about understanding what people need and being able to respond faster with the right mix of products, the right cost, the right quality, to the right locations around the world. This fits very well with Intel’s move to providing great user experiences as well as great products.
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