Supply Chain Management Software-as-a-Service

>and 3 suppliers with consolidated visibility into forecasts,
Learn how IBM implemented supply chaincommits, aggregate order quantities and inventory
management software-as-a-service to managepositions—so each tier of the supply chain can track
demand / supply execution, inventory andsupply chain execution and respond quickly to
replenishment across its global supply chain, andimbalances, errors and shortages. The scope and
incrementally scale the solution as more supply chaindepth of this visibility is critical to high levels of supply
partners come on board. IBM — A Faster,assurance.
Leaner, More Efficient Global Supply ChainIBM aims toWorking seamlessly together, the E2open supply chain
practice what it preaches. The company's earlymanagement solutions provide IBM and suppliers with a
support of fully automated processes—such as orderconsolidated view of customer demand, available
management, service requests and OEMsupply and any imbalances. They allow IBM to
manufacturing work orders—has served to improveproactively manage demand / supply execution,
customer satisfaction and operational efficiencies. Andinventory and replenishment across IBM's global supply
over the years the company has remained committedchain by providing a more accurate view of supply
to continuous improvement through the intelligentpositions. Through use of the information aggregated
application of new technologies, becoming a model forby the E2open solution, every supplier tier has the
a fully automated enterprise using the most advancedbusiness data they need to make effective supply
supply chain solutions and practices. IBM defines thechain decisions.THE RESULTS
next level of business process efficiency as anThe solution currently extends across 37
on-demand model: "An enterprise whose businessmanufacturing facilities and 10 replenishment (VMI)
processes can respond with speed to any customerservice centers, representing more than 85 percent of
demand, market opportunity or external threat." ThisIBM's annual manufacturing procurement expenditures.
model requires seamless end-to-end business processIt provides both IBM and Tiers 1, 2 and 3 suppliers a
integration of internal IBM systems while extending intoconsolidated view of demand and available supply.
key partners, suppliers and customers. THEWith the E2open solution, IBM is able to proactively
CHALLENGEmanage demand / supply execution, inventory and
With one of the largest and most complex supplyreplenishment across its global supply chain, and is able
chains in the world, IBM spends $41 billion annually onto incrementally scale the solution as more supply
orders for more than two billion component parts achain partners come on board through acquisitions and
year, workingwith 33,000 suppliers and 45,000 businessexpansions.
partners.IBM achieved very fast time-to-value with rapid
"IBM has long focused on creating and building anintegration and deployment across global sites and
integrated, end-to-end supply chain," says Kevintiers of suppliers, lowered total cost of ownership,
O'Connell, IBM's director of manufacturing andstreamlined operations, and increased responsiveness
procurement processes. "Now we wanted to bump itand flexibility within their supply chain. IBM estimates a
up to new levels of collaboration. To achieve our50 percent savings on deployment and operations
on-demand goals, we needed to extend integration ofcosts over its existing solution and alternative
business processes across a multi-tiered supply chainapproaches. Business benefits include:
and into customer and partner systems as well."- Reduced supply / demand planning time from 45+
IBM realized that their in-house supply chain systemdays to 10 days
was not sustainable. With their legacy system, IBM- Increased pull replenishment levels to 85 percent
relied on suppliers' and partners' reports and- Improved outbound on-time delivery rates to 90 to 95
management systems for visibility into its own supplypercent
chain. Sourcing compliance by Electronics- Improved inventory turns more than 42 percent
Manufacturing Services (EMS) providers for IBM core- Achieved time to benefit of less than nine months
suppliers was nothing close to real time. Instead, IBMThese solutions helped IBM in its quest to build a highly
operated in a reactionary mode, relying on EMSresponsive supply chain that can meet changes in
self-reporting and supplier end-of-quarter information.customer demand rapidly and efficiently.ABOUT
After extended analysis, IBM determined that it neededE2open
an industry-standard supply chain management solutionE2open is the leading provider of supply chain
that allowed for synchronization of demand and supplymanagement software-as-a-service for visibility and
and visibility into Tier 2 and 3 suppliers and contractcontrol over global supply networks. Industry leaders
manufacturers, for all IBM global manufacturing sitesthat power their supply chain with E2open include
and divisions. The solution had to be flexible and robustAgere, The Boeing Company, Hitachi, IBM, LG
enough to support changing customer demandElectronics, Matsushita Electric Industrial (Panasonic),
scenarios with proactive supply/demand planning. THEMotorola, Seagate Technology, Solectron and Wistron.
SOLUTIONE2open's software-as-a-service model offers faster
IBM turned to E2open to provide twopayback, larger ROI and reduced risk while requiring
customer-proven supply chain management solutions:less IT and business resources. Over 15,000
- E2open Demand / Supply Synchronization Solution:companies worldwide currently use E2open.
Enables IBM to sense and respond rapidly to demandHeadquartered in Redwood City, Calif., E2open is a
and supply changes—quickly flagging imbalances andprivately held company.
potential shortages. These capabilities allow IBM toFor additional information on how E2open can assist
reach its goal of building an integrated end-to-endyou in gaining visibility and control over your complex
supply chain that responds to demand and supplysupply chain, please visit our website at or contact us
changes rapidly and accurately.at 650.381.3737.
- E2open Multi-tier Visibility Solution: Provides Tier 1, 2Copyright 2007 E2open, Inc. All rights reserved.