Blue Yonder Case Studies Chipping Away at Lead Times

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	Chipping Away at Lead Times Blue Yonder

Chipping Away at Lead Times

Blue Yonder

Technology Category	Functional Applications - Enterprise Resource Planning Systems (ERP) Functional Applications - Inventory Management Systems
Applicable Industries	Electronics
Applicable Functions	Discrete Manufacturing Logistics & Transportation
Use Cases	Inventory Management Supply Chain Visibility
Services	Cloud Planning, Design & Implementation Services System Integration
Challenge	Marvell Semiconductor, a $4 billion company based in California's Silicon Valley, manufactures a diverse range of products including storage devices, controllers, routers, switches, gaming devices, multimedia chips, and printers. The company operates in an industry known for its long cycle times, with it taking approximately 14 weeks to build a product from scratch. This poses a challenge as customers generally do not want to wait that long. In order to meet customer requests, Marvell needed solutions to help manage its inventory and position it at the right point in the supply chain. One of Marvell’s key supply chain objectives is to meet – and exceed – its customers’ expectations. It aims to have the right product in the right place at the right time for delivery to the customer. At the same time, it’s important to drive revenue, so the company has to manage its inventory carefully and have a good supply chain in place – one that can be changed rapidly to meet customer requests. This enables Marvell to bring products to market faster, or in certain cases, be flexible enough to shift to a different product when demand changes. Read More
About Customer	Marvell Semiconductor is a $4 billion company headquartered in California’s Silicon Valley. The company is on the cutting edge of technology, manufacturing a diverse range of products including storage devices, controllers, routers, switches, gaming devices, multimedia chips, and printers. Marvell’s products are based on new technologies and automation. In each of its business areas, performance speed is extremely important. This is especially true in product categories like gaming, where consumers want faster performance and better graphics. However, Marvell operates in an industry known for its long cycle times, with it taking approximately 14 weeks to build a product from scratch. This poses a challenge as customers generally do not want to wait that long. In order to meet customer requests, Marvell needed solutions to help manage its inventory and position it at the right point in the supply chain. Read More
Solution	Marvell embarked on an initiative with JDA Software to optimize its supply chain processes. With help from the JDA Services team, Marvell implemented integrated forecasting and supply planning capabilities from JDA’s Manufacturing Planning solution. The company uses JDA’s Manufacturing Planning solution to manage its forecast, leveraging a single view of demand for running its business. The solution aggregates inputs from a number of different sources to generate a single forecast that helps Marvell run the company — not just the supply chain, but the entire business. Marvell's revenue projections, inventory management, and manufacturing plan are now all based on the same number. One of the most significant benefits of the implementation was the creation of a single statement of demand. The company has also made gains in its inventory management capabilities. It can now set inventory levels for different products, so that excess inventory does not accumulate. Marvell also has greater visibility into potential excess inventory, enabling it to react to it sooner. Read More Log in to view content
Contents

Technology Category

Functional Applications - Enterprise Resource Planning Systems (ERP)

Functional Applications - Inventory Management Systems

Applicable Industries

Electronics

Applicable Functions

Discrete Manufacturing

Logistics & Transportation

Use Cases

Inventory Management

Supply Chain Visibility

Services

Cloud Planning, Design & Implementation Services

System Integration

Challenge

Marvell Semiconductor, a $4 billion company based in California's Silicon Valley, manufactures a diverse range of products including storage devices, controllers, routers, switches, gaming devices, multimedia chips, and printers. The company operates in an industry known for its long cycle times, with it taking approximately 14 weeks to build a product from scratch. This poses a challenge as customers generally do not want to wait that long. In order to meet customer requests, Marvell needed solutions to help manage its inventory and position it at the right point in the supply chain. One of Marvell’s key supply chain objectives is to meet – and exceed – its customers’ expectations. It aims to have the right product in the right place at the right time for delivery to the customer. At the same time, it’s important to drive revenue, so the company has to manage its inventory carefully and have a good supply chain in place – one that can be changed rapidly to meet customer requests. This enables Marvell to bring products to market faster, or in certain cases, be flexible enough to shift to a different product when demand changes.

About Customer

Marvell Semiconductor is a $4 billion company headquartered in California’s Silicon Valley. The company is on the cutting edge of technology, manufacturing a diverse range of products including storage devices, controllers, routers, switches, gaming devices, multimedia chips, and printers. Marvell’s products are based on new technologies and automation. In each of its business areas, performance speed is extremely important. This is especially true in product categories like gaming, where consumers want faster performance and better graphics. However, Marvell operates in an industry known for its long cycle times, with it taking approximately 14 weeks to build a product from scratch. This poses a challenge as customers generally do not want to wait that long. In order to meet customer requests, Marvell needed solutions to help manage its inventory and position it at the right point in the supply chain.

Solution

Marvell embarked on an initiative with JDA Software to optimize its supply chain processes. With help from the JDA Services team, Marvell implemented integrated forecasting and supply planning capabilities from JDA’s Manufacturing Planning solution. The company uses JDA’s Manufacturing Planning solution to manage its forecast, leveraging a single view of demand for running its business. The solution aggregates inputs from a number of different sources to generate a single forecast that helps Marvell run the company — not just the supply chain, but the entire business. Marvell's revenue projections, inventory management, and manufacturing plan are now all based on the same number. One of the most significant benefits of the implementation was the creation of a single statement of demand. The company has also made gains in its inventory management capabilities. It can now set inventory levels for different products, so that excess inventory does not accumulate. Marvell also has greater visibility into potential excess inventory, enabling it to react to it sooner.

Impact #1	Increased forecast accuracy by approximately 30 percentage points
Impact #2	Improved inventory management and increased supply chain responsiveness
Impact #3	Achieved a single view of demand that is shared across the business

Impact #1

Increased forecast accuracy by approximately 30 percentage points

Impact #2

Improved inventory management and increased supply chain responsiveness

Impact #3

Achieved a single view of demand that is shared across the business

Benefit #1	Forecast accuracy improved from 20% to 45-50%
Benefit #2	Greater visibility into potential excess inventory
Benefit #3	Single view of demand used for revenue projections, inventory management, and manufacturing plan

Benefit #1

Forecast accuracy improved from 20% to 45-50%

Benefit #2

Greater visibility into potential excess inventory

Benefit #3

Single view of demand used for revenue projections, inventory management, and manufacturing plan

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Overview

Chipping Away at Lead Times

Operational Impact

Quantitative Benefit