Integrated Business Planning for High-Tech Manufacturing

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No industry is challenged more by extremely short product lifecycles and high levels of
competition than high-tech manufacturers. In just the past three years, manufacturers
have been forced to balance between increasing demand and supply pressures in a
variety of ways:

• Fickle Demand: On average, consumers change mobile devices every 7 months
• Escalating Variability: Demand is rapidly ramping for configure-to-order customization
• Uneven Markets: Emerging markets lead growth but regional purchase and use is irregular
• Volatility: Manufacturing supply chains face ever-increasing threats from unexpected natural disasters such as the Japanese tsunami and Thai floods

For more information about IBP, please visit: http://www.steelwedge.com/solutions/integrated-business-planning-platform/

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Integrated Business Planning for High-Tech Manufacturing

  1. 1. INTEGRATED BUSINESS PLANNING FOR HIGH-TECH MANUFACTURING DATA SHEET Steelwedge Integrated Business Planning for High-Tech Manufacturing To respond, high-tech companies need a deep understanding of customer demand to maximize assets and finished goods inventory. By rethinking existing, siloed processes and developing new ones that anticipate demand, companies are able to react more quickly to the unexpected. This results in high inventory turns and lowered lead-times from order to delivery. Leading Information Technology research and consultancy, Gartner, summarized in their Top Supply Chain 25 report: Role of Integrated Business Planning in High-Tech Manufacturing To future-proof your process, you must engage C-level stakeholders in the strategic planning and ensure that critical decisions are data-driven and timely. Using an integrated technology that provides insight into multiple data sources, you can: Page 1 of 2 | © 2013 Steelwedge Software, Inc. All rights reserved. – info@steelwedge.com – 925.460.1700 No industry is challenged more by extremely short product lifecycles and high levels of competition than high-tech manufacturers. In just the past three years, manufacturers have been forced to balance between increasing demand and supply pressures in a variety of ways: Fickle Demand: On average, consumers change mobile devices every 7 months Escalating Variability: Demand is rapidly ramping for configure-to-order customization Uneven Markets: Emerging markets lead growth but regional purchase and use is irregular Volatility: Manufacturing supply chains face ever-increasing threats from unexpected natural disasters such as the Japanese tsunami and Thai floods Manage a global financial budget tied to sales numbers, revenues and operational forecasts Maintain high-level, global visibility into external demand requirements from channel partners, VARs, and distributors Anticipate vendors’ supply constraints and react to long lead-times for components Optimize inventory levels and maximizing customer service levels Forecast option attach-rates using statistical bill of materials (BOMs) Allocate capacity and raw materials across multiple suppliers based on overall capacity utilization and profits Introduce new products based on historical performance and curve modeling Enable configure-to-order as well as build-to-stock business models in the same environment. ” “ Leaders in high-tech have moved beyond historical demand forecasting to forward-looking demand management by pulling in multiple data sources in the short-term, midterm and long-term to sense and shape demand for a more profitable product and aftermarket response.
  2. 2. Page 2 of 2 | © 2013 Steelwedge Software, Inc. All rights reserved. – info@steelwedge.com – 925.460.1700 Steelwedge High-Tech Spotlight: Powering a FAST philosophy for more agile Enterprise Networks Business A leader in wired and wireless secure network solutions uses Steelwedge S&OP to stay in front of global market shifts. In fact, in 2011 when its market took a 3% hit, this company put in its 7th sequential quarter of increased revenues and logged 25% year over year growth. Behind the success: it’s FAST (Flexible, Agile, Streamlined and Transformed) operating philosophy driven by S&OP to bring together the right people, process and technology. Key outcomes included: The company’s closed loop planning process connects its demand and supply while monitoring margin and revenue in real time. That visibility allows the company to identify and react to emerging business trends by analyzing—versus chasing-- key business data. substituted information for inventory partnered with suppliers to reduce in-bound lead-times postponed inventory closer to customer demand utilized appropriate performance metrics, e.g. end-to-end pipeline time Steelwedge Software, Inc. Steelwedge integrated sales, operations and finance planning solutions provide the "shock absorbers" to recognize, recalibrate and respond in a volatile environment. Business agility starts with Steelwedge for a clear line of sight from plan to performance to profit. For additional information, please email us: info@steelwedge.com. Steelwedge Advantages for High-Tech Manufacturers INTEGRATED BUSINESS PLANNING FOR HIGH-TECH MANUFACTURING DATA SHEET For the Sales Team: Enable collaborative forecasting for VARs, distributors, customers, and sales Power plans at any level of detail including configuration packages Integrate with the sales pipeline from CRM to support opportunity management Provide annual operating plan (AOP) visibility as part of S&OP process View cross-functional demand plans (sales, marketing, product management, etc.) For the Product Management Team: Develop attach-rate forecasts to drive mix forecasting for products (i.e. laptops) and key components Provides extended functionality that will support Fixed Bill of Material (BOM), Planning BOMs or “derived attach” rates for strategic components based on actual history or pipeline. Forecast at the option level or the planning BOM level. See where parts are used across multiple platforms and compare total demand forecast vs. attach rate forecast. Robust control of planning granularity with intuitive, slider-based data selection For the Planning Team: Drive company specific planning processes with One-Click Planning™ alert-driven workflow Provide planning process visibility and progress reporting Drive assigned or exception-based review policies For the Executive Team: Consolidate supply, demand and finance hierarchies into one comprehensive model Enable more detailed planning assumptions via relationship attributes (i.e., customer specific pricing, source specific costing). Model business complexity and global volatility risks Explore options to resolve and balance gaps Generate upside/downside demand scenarios Enable capacity-adjusted scenarios to resolve exceptions.

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