Trading Partner Integration

Sharing information early and often is the key to efficiently forecasting demand and managing inventory.

For pricing options, contact Xavor today!

Trading Partner Integration

The Challenge

With traditional supply chains, each member is responsible for their own inventory control, production and seeks to solve the production/inventory control problem on their own. Companies also tend to have a variety of partners, locations and systems along with a wide diversity of systems, standards, formats and protocols.

Complications Include:

  • Complex business processes
  • Lengthy cycle times
  • Low productivity rates

Root Causes

The separation results in a phenomenon known as the ‘bullwhip effect’ where demand fluctuation increases as you move up the supply chain from the end consumer. For companies in the semiconductor space, this means that demand fluctuates much more at each point of semiconductor production in the supply chain than at the point of the final application of the chip. These negative results include excess capacity, excess inventories and poor customer service, all of which lead to lost revenue and higher costs.

Solution

Sharing information early and often is the key to efficiently forecasting demand and managing inventory. Xavor provides Rosetta Net which is a non-profit association process based on XML business standards for sharing integrations with trading partners who manage their business through the exchange of documents over the Internet. This allows for the integration of B2B commerce processes involving manufacturing, operations, design, sales, marketing and logistics departments.

Contact Xavor today to start maximizing on the following benefits:

  • Improved visibility of demand across the entire supply chain
  • Reduction in obsolescence costs
  • Better fulfillment of customer demand
  • Significant supply chain return on investment
  • Simplified business processes

There are a variety of methods that can help you mitigate risks associated with inaccurate supply and demand forecasts. Xavor has extensive experience with end-to-end B2B integrations with semiconductor companies. Some tools that may help you better communicate with your trading industry partners include:

Vendor Managed Inventory (VMI)

VMI is a process where the supplier generates orders for the customer based on demand information sent by the customer. The supplier is guided by mutually agreed to objectives for inventory levels, fill rates and transaction costs.

Sales & Operations Planning (S&OP)

S&OP is a set of business processes and technologies that enable an enterprise to respond effectively to demand and supply variability with insights into optimal market deployment and the most profitable supply chain mix. S&OP strategies help companies make “right-timed” planning decisions for the best combination of products, customers, and markets to serve.

Collaborative Planning, Forecasting & Replenishment (CPFR)

CPFR is a business practice that combines the intelligence of multiple trading partners in the planning and fulfillment of customer demand. Sales and marketing best practices are linked to supply chain planning and execution processes with the objective of increased availability to the customer while reducing inventory, transportation and logistics costs.

Value

For semiconductor companies, the supply chain is made up of trading partners spread across the globe. Lead times are long while the product lifecycles of many of the final products continue to shrink. In order to be profitable, semiconductor companies must balance production to meet customer demand while optimizing inventory levels so they are not hit with the cost of obsolete inventory. This is a challenging proposition and missteps can be extremely costly.