The Horizontal, Hyper-competitive Future

The Horizontal, Hyper-competitive Future
Suppy Chain Management for the Semiconductor Industry - The Value Creation Potential of Transformation The Horizontal, Hyper-competitive Future Heechun Yang, Ph.D.

Agenda High Tech 산업의 수평 분업화 반도체 산업의 수평 분업화 반도체 산업의 제품군별 특징 반도체 산업의 공급망관리

80년대의 Personal Computer의 등장은 High Tech 산업을 Vertical 에서 Horizaontal로 변화시키는 주요 동인이 되었다.
Two factors drove the Unbundling: First, the shift of customer focus from Performance to Price/Performance Second, the shift of customer focus to Compatibility and the emergence of Industry Standards Application SW Application SW Proprietary operating systems gave way to the Windows standard as the OEM’s sought compatibility with the growing Windows-based software community Operating System Operating System Standardization around the Intel chipset and BIOS and Windows O/S drivers as the OEM’s sought to improve PC price/performance Hardware Hardware Desire to benefit from Intel processor performance drove component and hardware manufacturers to standardize on design specifications for the PCI card, the Intel chipset and the motherboard. This accelerated OEM outsourcing of components, such as video cards, hard disk controllers, modems, etc. Semiconductor Semiconductor *BIOS: Basic Input/Output System; PCI bus: Peripheral Component Interconnect

이러한 변화는 High 산업의 혼란을 초래하고 기존 기업의 몰락 및 새로운 기업이 등장하게 되었다.
Out with the Old In with the New Old Model Vertically Integrated Proprietary Architecture Old Leaders IBM From 1985–1990, IBM lost billions of dollars in market share Apple In 1980, Apple held 50% of the PC market. By 2000, Apple’s share had dropped to 3% Wang In 1982, Wang Computers introduced one of the first ‘killer apps’ – the dedicated word processor. By 1992, Wang filed for bankruptcy New Model Horizontal Specialist “Standardized” Architecture New Leaders Compaq, later Dell, now ?? By the mid-1990s, Compaq was the market leader. Dell took over the top slot in 2001 Intel Intel dominates semiconductors with approximately 80% share of the microprocessor market Microsoft Since the release of Windows 3.0, Microsoft has been the de facto standard for PC operating systems Source: Company Web sites, Bear Stearns, PBS.corg, Cyberstreet.com, PC Week, Fortune,

Horizontal layers로 분산되는 현상은 PC에서 Server 및 통신장비로 까지 확산되어 진행되고 있다.
Horizontal Forces Are Gaining Strength in Most High Tech Segments Servers Storage Networking/Communications Equipment Drivers Entry level will grow at 11% between ’00-’05 from a 53% share in ‘00 to 60% in ’05 Average selling prices of servers have declined by almost 15% from ’99-’01 Dell’s share in entry level servers is growing rapidly Overall demand for storage is increasing but average selling prices and margins are declining Declining price/terabyte leading integrated companies to exit hard disks Chips are outsourced and selected based upon price. Intel is now aggressively targeting communications Declining average selling price in low end routers and switches Handset prices are declining 1. Shift of customer focus from Performance to Price/Performance 2. Emergence of Interface Standards Among entry level servers, entrants like Dell use standard components from the PC including the motherboard, chipsets, Windows and Intel chip With IA-64, Intel is poised to establish a de facto standard and extend its share in entry level and midrange servers Customers looking for multi-vendor compatibility Even traditionally proprietary EMC has introduced WideSky, a middleware enabling multi-vendor storage management Successful software, like Veritas, creates momentum around vendors and APIs* Customers of networking equipment vendors like Cisco are expressing need for compatibility Open application platforms and operating systems are emerging such as Java-based J2EE and BREW* Interfaces use industry standards such as DSL, TCP/IP and ATM* *API: Application Program Interface, J2EE: Sun’s Java 2 Enterprise Edition, BREW: Binary Runtime,Environment for Wireless is Qualcomm’s O/S DSL: Digital Subscriber Line, TCP/IP: Transport Control Protocol/Internet Protocol, ATM: Asynchronous Transfer Mode Source: Clayton Christensen’s The Innovator’s Dilemma

A Mix of Vertical and Horizontal The Horizontal Landscape
High Tech 산업은 지속적으로 horizontal로 진행될 것이며 서로 다른 Stack을 조합하는 형태로 제품이 출현될 것이다. 과거의 Proprietary and Vertically integrated model로 부터 Individual ‘layers’ 및 Assembler로 전환되고 있다 1980s Vertically Integrated A Mix of Vertical and Horizontal The Horizontal Landscape Layers of The “Solution Stack” Systems Integrators and Service Providers Application Software Operating System Hardware and Assemblies Semiconductors Semiconductor Equipment Personal Computers Servers Comm/Netwk. Equipment Storage Personal Computers Servers Comm/Netwk. Equipment Storage Mainframes Mini-Computers Source: Andy Grove’s Only the Paranoid Survive

Link the Extended Enterprise
산업의 Horizontal화는 반도체 산업에서도 같은 방향으로 진행되고 있다. 70’s 80’s 90’s 00’s Link the Extended Enterprise Fully Vertically Integrated OEM’s System Manufacturers Compaq Dell Cisco HP Branded Retailers CompUSA Others to enter Contract Manufacturing Solectron SCI Jabil IBM Digital Equipment GE NCR Silicon Suppliers Intel AMD National Semiconductor Texas Instrument Micron Fabless Design & Dist. Adaptec Altera LSI Logic IP Designers MIPS Artisan EDA Cadence Synopsys TSMC United Microelectronics Chartered Semiconductors Foundry

반도체 산업의 수평적인 진화는 더욱 세분화된 형태로 진행되고 있다.
Phase 1: Full Integration, 1960s Phase 2: Traditional, 1970s Phase 3: Fabless, 1980s Phase 4: Chipless, 1990s Phase 5: SOC Integrators, 2000s Specification & Integration Sales & Distribution Silicon Intellectual Property Fabrication Manufacturing Tools Specification & Integration Sales & Distribution Silicon Intellectual Property Fabrication Manufacturing Tools Specification & Integration Sales & Distribution Silicon Intellectual Property Fabrication Manufacturing Tools Specification & Integration Sales & Distribution Silicon Intellectual Property Fabrication Manufacturing Tools Specification & Integration Sales & Distribution Silicon Intellectual Property Fabrication Manufacturing Tools Integration of System requirements occurs anywhere Internal External

수평적인 전문 역량 , intellectual property 및 시스템 레벨의 표준 소유 기업이 반도체 산업의 지배적인 회사가 될 것으로 예상된다.
Phase 3: Fabless, 1980s Phase 4: Chipless, 1990s Phase 5: SOC Integrators, 2000s Available Capacity Cost plus pricing Capital Avoidance No product strategy Fab Process technology high volume capable Not leading edge process technology Customized processes Vertical Integrated Device Manufacturers (IDMs) Some outsourcing fabrication, not design IDMs Process specific product design ASIC concept Sematech Silicon vendors Universities High volume, low cost manufacturer Product market pricing dependent Learning curve leverage High volume, low margin products Contracted at Product life cycle point of commodization Fab Process technology is leading edge and standardized for many customers Vertical Integrated Device Manufacturers (IDMs) Design, fabrication for standardized processes outsourced Third party design houses, IDMs Standardized fabrication processes Intellectual Property for core functionality Sub-micron phase IDMs, System Integrators Design Houses, IP providers Silicon vendors Universities Systems solution and platforms market share and pricing premiums Program-based economics Platform and standards definition and provider Products based on platforms Process technology to minimize costs not differentiating standardized and modular Platform definition provider Coordinates design, core technologies, manufacture, assemble, test, logistics Defines customer requirements Universal process, product design Deep Sub-micron SOC design capability Coordinate all participants to comply with platform and process requirements eDesign Design house IP core providers Product manufacturers Design Tool integration Value proposition Product/Process Strategy Supply Chain Integration Design and Development Partnerships and Alliances

Foundry 사업 모델도 경쟁 우위를 유지하기 위해서는 System integration 및 Platform/Protocal Definition으로 발전되어야 한다.
Phase 1: Full Integration, 1960s Phase 2: Traditional, 1970s Phase 3: Fabless, 1980s Phase 4: Chipless, 1990s Phase 5: SOC Integrators, 2000s Decreased fab capacity differentiation Decreased low cost Manufacture differentiation Decreased product/ process differentiation Competitive Manufacturing Competitive Product/Process System Definitions Motorola plans to achieve outsourcing of 50% of its wafer manufacturing by 2000 Both Rockwell and Siemens have spun-off their semiconductor businesses Growth in merchant semiconductor manufacturers output is projected at 0% for 1999 while foundry growth is projected at greater than 10% Significant process innovations such as CMP, copper interconnect and silicon-germanium are simultaneously developed by a number of companies AMD, Cyrix and Intel all have comparable products for the sub-$1000 PC segment, differentiation occurs at the system level IBM, Philips, Qualcomm and others have all developed single-chip system level solutions for the communications market Qualcomm provides the necessary intellectual property to insure a lock on the CDMA protocol for next-generation cellular telephones, relying on foundries for wafer production, test and assembly Intel dictates the parameters of of all components interfacing with its system level solutions Proprietary design infrastructure is used with development kits to help system designers differentiate their systems, Altera, Xilinx etc.

반도체 산업 및 High Tech 산업의 수평적인 분업 및 전문화는 산업의 효율성 및 복잡성을 증대시키는 양면성을 가지고 있으며, 이를 Supply Web 이라고 지칭한다.
Fabless Design/ IP House Service Provider System Design House Distributor Raw Material Supplier Technology Reseller End User Capital Equipment Manufacturer Semiconductor Manufacturer Component Manufacturer System OEM Indirect Supplier Distributor Foundry Assembly & Test Contract Manufacturer 2002 1985

특정한 마켓 및 고객 Needs에 따라 반도체 산업을 구분지면 다음과 같다.
DSP / PLD Microprocessors Discrete Optoelectronics ASIC Derivatives Memory Flash True Custom “Standard” Pure Custom / New Technology Tailored Product (Semi Design-In) High Commodity (Potential Value-Add) Low Commodity Low Cost / Common Parts Solutions Systems Products Parts

(Potential Value-Add)
전체적인(공통적인) 산업의 특징 Drives market share Opportunities to capture high margin Segment of highest demand volatility (price vs. supply) DSP / PLD Microprocessors Discrete Optoelectronics ASIC Derivatives Memory Flash True Custom “Standard” Pure Custom / New Technology Tailored Product (Semi Design-In) High Commodity (Potential Value-Add) Low Cost / Common Parts Low Commodity Solutions Systems Products Parts Increasing presence of joint ventures and consortiums Largest emerging market --- niche providers capturing market share Heavy co-development Drives product proliferation Stable products Eroding margins High price sensitivity Common Challenges Planning and managing capacity and capital 70+% sales going to 20% of the customers (local & global support required for strategic customers) Excessive development and delivery lead-times Need to improve design and delivery performance to schedule

Market Development / Demand Generation Challenges Demand swings with minor price change Customers continually search for best price Manage inventory to service levels Will go elsewhere if product not available Quick response delivery time Longer product lifecycle Little variation from standard products Price Co-develop product with customers Sales are extension on development Flexibility to meet customer-specific configuration Reduce fab/assembly cycle times Simplify and standardize design processes Leverage design libraries Manage total design through delivery costs Design for fab/assembly capabilities in mind Joint Development Delivery Speed Standard Products DSP / PLD Microprocessors Discrete Optoelectronics ASIC Derivatives Memory Flash True Custom “Standard” Pure Custom / New Technology Tailored Product (Semi Design-In) High Commodity (Potential Value-Add) Low Cost / Common Parts Low Commodity Solutions Systems Products Parts Cost Speed to market wins Reduce lead-time in front-end design Manage short lifecycles Creation of new libraries Development for leaps in application technology Systems integration focus Technology shifts Manufacturability Lifecycle Available to promise logic Minimize configuration cycle time Focus on performance to schedule Pick, program, mount and test Pack and ship Outsource to manage cost & complexity Confirmation of common applications Migration of technical to standards Combining existing technology Delivery Configure Design-In Technology Technical Skills

Market Development / Demand Generation Challenges Shortening cycletimes inventory turns improve cash flow Reserve planning is difficult Risk of inventory obsolescence is high Postponement techniques used to reduce risk of obsolescence Inventory service level vs. efficiency Cash Flow Move toward option pricing (value-added services) Price becomes issue if performance is mediocre Pricing accuracy is challenging (cost & margin) Accurate costing is difficult Flexibility enables margin capture (quick response & configurability) Overhead burden often shifted to volume production High risk of idle capacity Shift from volume to turnaround Need to maximize design wins Pricing Inventory Costing DSP / PLD Microprocessors Discrete Optoelectronics ASIC Derivatives Memory Flash True Custom “Standard” Pure Custom / New Technology Tailored Product (Semi Design-In) High Commodity (Potential Value-Add) Low Cost / Common Parts Low Commodity Solutions Systems Products Parts Risk Heavy contract work Compensation is increasingly tied to performance (JVs) High capital / high overhead Asset management Joint venture to leverage capital investment dollars Partnerships to leverage development, skills and capabilities (“fabless” companies) Transactional (bill and ship) Lower overhead cost Cashflow management Invoice to receipt time Turns is critical -- high risk of devaluation Compensation Cash Flow Investment Inventory Common Challenges Global financial excellence requires total integration (capital planning, cash management, international tax & legal, accounting) Overhead allocations do not reflect real costs Need to migrate financial systems from historical reporting to a proactive forward looking model

Production Challenges Re-focus plant capabilities on short notice Minimize cycletime to reduce risk of lost sales & devaluation Must support high-mix production Product Transitions Technology Transitions Agility Synchronous scheduling for chip set delivery Capacity/reservation management ATP scheduling accuracy Product design, integration and production capabilities must be strong System level tolerance stackup Recipe downloads Machine control Data capture & feedback Cycletime Configure to Order DSP / PLD Microprocessors Discrete Optoelectronics ASIC Derivatives Memory Flash True Custom “Standard” Pure Custom / New Technology Tailored Product (Semi Design-In) High Commodity (Potential Value-Add) Low Cost / Common Parts Low Commodity Solutions Systems Products Parts MES Integration Output Yields must exceed 90% to meet competition Volume production to maximize contribution Factory flexibility Reduce cycletimes & increase run frequency High service level Low inventory Minimize produce to forecast Disti return or charge-back inventory Design Integration Aggressive prototyping Concurrent engineering Integrated MES Accelerated prototypes Smaller geometries, denser packaging Utilize new design libraries Minifabs for quicker investment return Advanced risk production JIT Technology Adaptation Capital Common Challenges Survivors will reduce leadtimes relentlessly (2.5 times theoretical is benchmark) Inventory management is becoming a critical process (supply = 2 x cycletime + transit time) Capital investment requirements moving to a standard 3 year return on investment (ROI) Cost-of-ownership at the tool, work center and plant level is replacing overhead allocations

Fufillment Challenges Configure Maintain low component inventory with frequent replenishment Local configure and package to order Customer and regionally focused delivery channels Large 3rd party value-add distributor-based Cycletime stability and minimization Performance to schedule (98+%) Vendor-managed inventory Execution performance must be excellent Increasingly complex planning requirements Customer and production integration is critical Design for manufacturing using CIM capabilities & technologies Short response times required throughout the process Design Fab, assembly & test Direct ship Capacity Availability Delivery Channels Integration Cycletime DSP / PLD Microprocessors Discrete Optoelectronics ASIC Derivatives Memory Flash True Custom “Standard” Pure Custom / New Technology Tailored Product (Semi Design-In) High Commodity (Potential Value-Add) Low Cost / Common Parts Low Commodity Solutions Systems Products Parts Increasing presence of jointly owned foundries Synchronization with customer design and build schedule Reduction of cycletime is critical Design Fab, assembly & test Development Inventory planning and management is critical Pick, pack and ship distributor channel Pull replenish-to-target Quick response service to customers JIT inventories Consignment inventories Inventory Reduction Delivery JIT

Information Technology Challenges Complex planning environment Demand forecasting Inventory and logistics planning Production Product / technical specifications and information (Production libraries) Sales Force Automation Industry / market analysis information warehousing data mining internet Planning Design Design-in tools Design library management Product configuration reusable “subsets” modular design Allocate/reserve capacity Optimize asset utilization Marketing DSP / PLD Microprocessors Discrete Optoelectronics ASIC Derivatives Memory Flash True Custom “Standard” Pure Custom / New Technology Tailored Product (Semi Design-In) High Commodity (Potential Value-Add) Low Cost / Common Parts Low Commodity Solutions Systems Products Parts Resource Planning Planning and fulfillment Replenish to target Bill when ship Target planning Available to Promise Accurate commits Availability checking Customer orders Payment processing Forecast sharing Real time data Distribution/ Logistics Development tools Product configuration integrated into design Project and program management tools Capacity planning and reservations Design Environment Inventory Planning EDI Common Challenges ERP integrates global financials and business management systems ERP solutions should be implemented in concert with business process simplification to maximize benefits Global planning solutions can be tailored to support production & capacity planning and distribution & logistics Information warehousing and data mining provide the infrastructure for single information sources across the company (product, market and financial data) Executive information systems provide the global view of integrated business metrics and portfolio consolidation

반도체 산업 내의 제품군에 따라 운영 전략이 다르며, Commodity 보다는 Customized and Integrated쪽으로 Margin, 차별화, 시장 지배성이 이동되어 가고 있다. Standardization of the electrical capability of integrated circuit processes occurs at the wafer level! Differentiation of silicon manufacturing processes is constrained. Texas Instruments schedules the transfer of manufacturing processes to foundries at precisely the point at which product commodization occurs at the wafer level Develop modular products Transfer standard function across customer solutions Intellectual property and design libraries key Standard processes across solutions and customers Modular processes for transportability across solutions Life cycle extended by common and modular solutions Margin capture through “design-wins” Product Strategy Fabrication Process Product Life Cycle DSP / PLD Microprocessors Discrete Optoelectronics Memory Flash ASIC Derivatives True Custom “Standard” Pure Custom / New Technology Tailored Product (Semi Design-In) High Commodity (Potential Value-Add) Low Commodity Low Cost / Common Parts Solutions Systems Products Parts SOC Standard products Cost and service success determinants Kitting with other products for solutions Standardized, high volume processes Low technology requirements for most products Long product life cycles Limited growth opportunities Standardized products Cost, market share, availability success determinants Platform technology consistency required Highest process technology requirements to drive cost advantages Rapid technological advancement Short product life cycles driven by process technology advancements Flat growth phase of life cycle, measured in revenue Develop platform, protocol definitions for product solutions Use of IPs and design libraries required Share design of solutions for market acceptance Use of standard processes across solutions and customers Life cycle is determined by solution definition, not competition LSI Logic is pursuing a delayed product customization strategy with its embedded-DRAM partnership with Micron standard cores are manufactured at foundries and customized with interconnect elsewhere

– The Supply Chain Continuum – Relationships Along the Supply Chain
공급망관리의 경쟁 우위는 단일 기업내 보다는 확장된 공급망관리의 역량에 의해 결정되며 특히 산업이 Horizontal화 될수록 더욱 심화된다. – The Supply Chain Continuum – New Web-based Entrants Across Alliance Partners Synchronized Synchronization Step 3: Virtually Synchronize the supply chain across players into one logical enterprise Electron Economy Escalate OrderTrust With Customers & Suppliers Collaborative Collaboration Step 2: Improve collaboration and control with vendors, customers Compaq Dell Sun HP Intel Scope of Impact Integrated Integration Step 1: Integrate functions of the existing supply chain Between Business Functions Increasing Capabilities, Increasing Benefits Within Business Activities Traditional Optimization Relationships Along the Supply Chain

- Example of eSupply Chain Collaboration - Strategic Procurement
반도체 산업의 공급망관리에서도 Web-enabled 기능의 발전으로 인하여 strategic procurement, collaborative Supply Chain planning and collaborative design등이 보편화 되고 있다. - Example of eSupply Chain Collaboration - Company Web-based Interaction PDM PM CAD Suppliers CSM Strategic Procurement Supply Chain Planning Collaborative Design Data Exchange ERP Customers SCM DATA Shared Processes Foundries MRO Web-based Interaction Delivery

eSynchronized Supply Chain
궁긍적인 공급망의 모습인 eSSC이 되기 위해서는 아래와 같은 기능이 Web-enabled Service 형태로 비즈니스 Partners간에 구현이 되어야 한다. eSynchronized Supply Chain Integrated Collaborative Virtual eSupply Chain Planning Demand Planning Supply Planning Inventory Planning Master Planning Factory Planning and Scheduling Distribution Planning Logistics Planning eDesign Product Data Management Engineering Change Control Process Methodology Intellectual Property Component and Supplier Management Project Management Document Management Third Party Fulfillment Order and Product Tracking Routing and Network Optimization Carrier Management Resource assignment Load consolidation eProcurement Customer Management Sourcing and Supplier Management Order Execution Payment Execution Supplier Integration Process and Performance Management Customer Intellectual Property Design House Raw Materials Foundry Test & Assembly Systems Integrators Distribution Transportation Support Customers

Global Leading 반도체 기업들은 부분적으로 이러한 기능을 구현하여 운영하고 있다.
- Semiconductor Examples - Texas Instruments (eCRM, eSupply Chain Planning) TI has created a Web site to allow their customers to purchase products online providing product, pricing, availability and order status information TI has implemented i2’s Supply Chain Management (SCM) solution, enabling supply chain planning processes throughout all of their factories, suppliers and customers Lucent (eSupply Chain Planning) Lucent has extended the reach of their customer collaboration services by sharing information and processes including orders and purchasing, demand forecasting, order status, inventory and production planning National Semiconductor (eCRM) National Semiconductor has provided access to information and capabilties for their customers to purchase products online including product, price, availability and order status information TSMC (eCRM, eDesign, eSupply Chain Planning) TSMC is developing web enabled Sales Force Automation, Customer Support and Technical Service capabilities TSMC is developing web enabled Design and Product Data Management capabilities TSMC is developing web enabled Supply Chain planning tools

반도체 산업에서 중요하게 생각되는 공급망관리의 기능은 상당한 경쟁 우위의 가능성을 내포하고 있다.
Hosted Supply Chain Network Test and Assemble Suppliers IP Provider Manufacturing eProcurement eSupply Chain Planning eDesign/PDM Manufacturing Execution Systems Design House Bill Presentment and Payment Delivery Financing IC Users (System Companies)

전체적인 공급망 관리 기능을 전략, 계획 실행 측면으로 Mapping을 하면을 다음과 같다.
Design Integrate Build Distribute Sell/ Service Supply Chain Operating Model Strategy Customer eCommerce portal Sales development tools Technical support Product Development FlexBuild Logistics Make/Buy strategy Outsource options Fulfillment model Logistics strategy and operating model Distribution strategy Planning Supply Chain Synch Demand planning IP development and management eDesign tools and processes Lifecycle management Collaborative Planning Service Logistics Supply/ Demand Match Execution Committing / Order Execution Operating model Process technology Network Design Supplier Mfg facilities Subcontractors Merge Infrastructure Processes Information Management/Network Service Center Organization and Performance Management

eDesign은 매출 및 마진 증대 효과 및 제품 개발 비용 절감의 효과를 나타내고 있다.
- eDesign Capabilities - - Benefits - Product Data Management Create, view and manipulate the structure, logical representation and attributes of products produced by the enterprise Engineering Change Control Manage changes to product information including definition, modification, request for review and assignment of activities Process Methodology Automate standardized internal and external processes and pass information, tasks and documents amongst participants Component & Supplier Management Standardize, consolidate and manage part and supplier information and selection procedures Project Management Plan and manage projects using standardized and shared tools for planning, forecasting, resource utilization, tasking and status reporting Document Management Provide shared, simultaneous access to documentation regardless of location or affiliation with strict security, version and iteration control Reduce Lost Sales Time to Market reduced by 15% to 33% 10% to 15% of sales may be lost during introduction delays Improve Product Margins Additional margin capture from early product life cycle introduction is 10% to 15% Decrease Failure Costs Scrap and rework costs reduced by 20% to 30% Decrease Material Costs Component and supplier consolidation and volume leverage impact is 10% to 15% Improve Development Costs Development effort is reduced by improved design cycle time by 5% to 10% Documentation and administration costs are reduced by 40% to 50%

eProcurement는 구매 단가 및 구매 관련 비용의 절감에 많은 효과를 보이고 있다.
- eProcurement Capabilities - - Benefits - Customer Management Manage and aggregate the needs of the internal enterprise businesses including demand aggregation, product and supplier consolidation Sourcing/Supplier Management Manage product and supplier information including descriptions, supplier ratings, availability and negotiated prices Order Execution Automate and standardized internal purchasing activities including purchase requisitions and approval, purchase orders and sharing delivery information Payment Execution Transact payments and settle accounts including EFT, receipt settlement and integration with accounts payable Supplier Integration Provide access to value added supplier information sharing capabilities including up-to-date online catalogues, technical support and inventory Process and Performance Management Automate standardized internal and external processes and pass information, tasks, performance feedback and documents amongst participants Decrease Material Costs Component and supplier consolidation and volume leverage impact is 15% to 20% Increased preferred supplier and component information for design leading to increased aggregation and volume leveraging Decrease Procurement Costs Transaction and administration costs are reduced by 40% to 50% Leverage of centralized contract negotiation expertise and knowledge impact is 5% to 15% Increase order accuracy by reducing rework by 5% to 10% Increase supply availability Demand aggregation increases forecast accuracy and increases product allocation flexibility Decrease Supplier Costs Reduced administrative and sales support costs by up to 15%

- eSupply Chain Planning Capabilities -
eSupply Chain planning은 Service level 향상을 통한 매출 및 마진 증대 및 재고 감축 등의 효과를 보여 주고 있다. - eSupply Chain Planning Capabilities - - Benefits - Demand Planning Plan and manage demand forecasts and promotion planning including collaboration with partners, statistical tools and techniques and configuration capabilities Supply Planning Optimize supply over key constraints across entire supply chain, across all facilities, capacity alternatives and alternative sources of supply Inventory Planning Determine optimal inventory levels and location to protect desired customer service goals Master Planning Globally optimize production plans considering tradeoffs of available capacity, materials, costs and time Factory Planning & Scheduling Optimal execution of the Master Plan to minimize cost and improve quality of the plan Distribution Planning Optimally positioning and deploying inventory to achieve desired customer service Logistics Planning Integration of planning and operations of logistics partners including collaboration, network models, load consolidation, routing and provider selection Increased Revenues Improved Customer service with improved delivery lead times and performance Improved utilization of resources and capacity bottlenecks through better demand planning Increased Margin Performance Optimize use of resources and capacity based on total costs Reduced Inventory Costs Reduced inventory levels required for customer service levels, delivery performance

eSupply Chain Planning eProcurement
반도체 및 High Tech에서 web-enabled된 공급망 관리 기능을 지원하는 IT Tool들은 이미 상용화가 많이 진행 중이다. - Application Map - eDesign eSupply Chain Planning eProcurement IP Mgmt HW, SW, Electrical Engineering Design Decision Support, Simulation / Analysis Demand/ Capacity Mgmt Supply Planning Logistics Network Mgmt Materials Reqmtts Supplier and Data Mgmt. Transaction Processing Support Windchill, Valor, Aspect Aspect , Synchro-nicity VDS, Rose, Mentor, Viewlogic, ProE, Cadence, IDE, Rose XXX i2/High Tech Trade Matrix, Agile/Digital Markets, Supplier Markets, SAP i2/High Tech Trade Matrix, Agile/Digital Markets, Supplier Markets, SAP i2, SAP, Manugistics i2, SAP, Manugistics, Paragon i2, SAP, Baan, Manugistics i2/High Tech Trade Matrix, SAP Enovia, Metaphase, MatrixOne, ClearCase, Synchronicity, etc. Product Data Access and Management Product Inventory and Location Data and Management Product and Supplier Data Management i2, SAP, Manugistics, Paragon, Baan CommerceOne, Agile/Digital Markets, Ariba, Aspect Process Backbone Presentation CreOsys, eXcelon, VDS, Windchill, CreOsys, etc. Netmeeting, CuSeeMe App. Sharing, CreOsys Vitria, TIBCO, Windchill, Extricity, Viewlocity Extricity, STC, TIBCO, Vitria, Viewlocity, Mercator Collaboration Process Management Integration

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