Blue Yonder Case Studies One Supply Chain Does Not Fit All

Edit This Case Study Record

	One Supply Chain Does Not Fit All Blue Yonder

One Supply Chain Does Not Fit All

Blue Yonder

Technology Category	Functional Applications - Enterprise Resource Planning Systems (ERP)
Applicable Industries	Electronics
Applicable Functions	Logistics & Transportation Procurement
Use Cases	Inventory Management Supply Chain Visibility
Services	Software Design & Engineering Services System Integration
Challenge	Altera Corporation, a pioneer and leader in programmable logic solutions, serves more than 12,000 customers worldwide, with annual revenues of $1.9 billion. However, recent market changes and organizational growth over the past decade prompted Altera to reevaluate its supply chain strategy. Adapting to external changes like new government regulations and industry consolidation, as well as managing more complex products and various distribution channels, were impacting the company’s supply chain. The company recognized that change is the new norm, and therefore, it needed to be continuously evolving in order to ensure supply continuity and velocity. Altera increased external and internal forecast collaboration, and invested in business process improvement and integrated planning systems to accelerate the speed of information exchange. Read More
About Customer	Altera Corporation is a pioneer and leader in the field of programmable logic solutions. The company enables system and semiconductor companies to rapidly and cost-effectively innovate, differentiate and win in their markets. Altera delivers solutions and services to more than 12,000 customers worldwide, with annual revenues of $1.9 billion. The company's customers range from global market-leading original equipment manufacturers (OEMs) to local hobbyists. Altera sells products that are low-volume/high-cost and products that are high-volume/low-cost — and every product type in between. Read More
Solution	Altera adopted a segmentation strategy, enabled by JDA’s Manufacturing Planning solution, to tailor its supply chain model. The company leveraged JDA’s demand planning, master planning and order promising capabilities to successfully drive both customer and product segmentation. Altera developed unique forecasting techniques and safety-stock policies that are tailored to its different customer segments. For example, the company developed a collaborative process for its OEMs since they purchase in large volumes. For customers with a more stochastic demand profile, Altera implemented very different supply chain processes and rules. The company also segments its supply chain based on product type. Altera’s segmentation strategy is critical in balancing ambitious customer service targets with real-world resource constraints. Read More Log in to view content
Contents

Technology Category

Functional Applications - Enterprise Resource Planning Systems (ERP)

Applicable Industries

Electronics

Applicable Functions

Logistics & Transportation

Procurement

Use Cases

Inventory Management

Supply Chain Visibility

Services

Software Design & Engineering Services

System Integration

Challenge

Altera Corporation, a pioneer and leader in programmable logic solutions, serves more than 12,000 customers worldwide, with annual revenues of $1.9 billion. However, recent market changes and organizational growth over the past decade prompted Altera to reevaluate its supply chain strategy. Adapting to external changes like new government regulations and industry consolidation, as well as managing more complex products and various distribution channels, were impacting the company’s supply chain. The company recognized that change is the new norm, and therefore, it needed to be continuously evolving in order to ensure supply continuity and velocity. Altera increased external and internal forecast collaboration, and invested in business process improvement and integrated planning systems to accelerate the speed of information exchange.

About Customer

Altera Corporation is a pioneer and leader in the field of programmable logic solutions. The company enables system and semiconductor companies to rapidly and cost-effectively innovate, differentiate and win in their markets. Altera delivers solutions and services to more than 12,000 customers worldwide, with annual revenues of $1.9 billion. The company's customers range from global market-leading original equipment manufacturers (OEMs) to local hobbyists. Altera sells products that are low-volume/high-cost and products that are high-volume/low-cost — and every product type in between.

Solution

Altera adopted a segmentation strategy, enabled by JDA’s Manufacturing Planning solution, to tailor its supply chain model. The company leveraged JDA’s demand planning, master planning and order promising capabilities to successfully drive both customer and product segmentation. Altera developed unique forecasting techniques and safety-stock policies that are tailored to its different customer segments. For example, the company developed a collaborative process for its OEMs since they purchase in large volumes. For customers with a more stochastic demand profile, Altera implemented very different supply chain processes and rules. The company also segments its supply chain based on product type. Altera’s segmentation strategy is critical in balancing ambitious customer service targets with real-world resource constraints.

Impact #1	Increased responsiveness based on demonstrated customer needs
Impact #2	Improved overall supply chain flexibility
Impact #3	Matched lead times to different customers and products

Impact #1

Increased responsiveness based on demonstrated customer needs

Impact #2

Improved overall supply chain flexibility

Impact #3

Matched lead times to different customers and products

Benefit #1	Reduced the demand signal propagation time from customers to suppliers from several weeks to a few days
Benefit #2	Increased planning frequency
Benefit #3	Tailored supply chain model to meet diverse customer requirements and mitigate associated supply chain risks

Benefit #1

Reduced the demand signal propagation time from customers to suppliers from several weeks to a few days

Benefit #2

Increased planning frequency

Benefit #3

Tailored supply chain model to meet diverse customer requirements and mitigate associated supply chain risks

Download PDF Version

Overview

One Supply Chain Does Not Fit All

Operational Impact

Quantitative Benefit