Supply Chain Management Software-as-a-Service

>forecasts, commits, aggregate order quantities and
Learn how IBM implemented supply chaininventory positions—so each tier of the supply chain
management software-as-a-service to managecan track supply chain execution and respond quickly
demand / supply execution, inventory andto imbalances, errors and shortages. The scope and
replenishment across its global supply chain, anddepth of this visibility is critical to high levels of supply
incrementally scale the solution as more supply chainassurance.
partners come on board. IBM — A Faster,Working seamlessly together, the E2open supply
Leaner, More Efficient Global Supply ChainIBM aims tochain management solutions provide IBM and suppliers
practice what it preaches. The company's earlywith a consolidated view of customer demand,
support of fully automated processes—such asavailable supply and any imbalances. They allow IBM
order management, service requests and OEMto proactively manage demand / supply execution,
manufacturing work orders—has served to improveinventory and replenishment across IBM's global
customer satisfaction and operational efficiencies. Andsupply chain by providing a more accurate view of
over the years the company has remainedsupply positions. Through use of the information
committed to continuous improvement through theaggregated by the E2open solution, every supplier
intelligent application of new technologies, becoming atier has the business data they need to make
model for a fully automated enterprise using theeffective supply chain decisions.THE RESULTS
most advanced supply chain solutions and practices.The solution currently extends across 37
IBM defines the next level of business processmanufacturing facilities and 10 replenishment (VMI)
efficiency as an on-demand model: "An enterpriseservice centers, representing more than 85 percent
whose business processes can respond with speedof IBM's annual manufacturing procurement
to any customer demand, market opportunity orexpenditures. It provides both IBM and Tiers 1, 2 and
external threat." This model requires seamless3 suppliers a consolidated view of demand and
end-to-end business process integration of internalavailable supply.
IBM systems while extending into key partners,With the E2open solution, IBM is able to proactively
suppliers and customers. THE CHALLENGEmanage demand / supply execution, inventory and
With one of the largest and most complex supplyreplenishment across its global supply chain, and is
chains in the world, IBM spends $41 billion annually onable to incrementally scale the solution as more
orders for more than two billion component parts asupply chain partners come on board through
year, workingwith 33,000 suppliers and 45,000acquisitions and expansions.
business 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
up to new levels of collaboration. To achieve oura 50 percent savings on deployment and operations
on-demand goals, we needed to extend integrationcosts over its existing solution and alternative
of business processes across a multi-tiered supplyapproaches. Business benefits include:
chain 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
management systems for visibility into its own supply95 percent
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
operated in a reactionary mode, relying on EMShighly responsive supply chain that can meet changes
self-reporting and supplier end-of-quarter information.in customer demand rapidly and efficiently.ABOUT
After extended analysis, IBM determined that itE2open
needed an industry-standard supply chainE2open is the leading provider of supply chain
management solution that allowed for synchronizationmanagement software-as-a-service for visibility and
of demand and supply and visibility into Tier 2 and 3control over global supply networks. Industry leaders
suppliers and contract manufacturers, for all IBMthat power their supply chain with E2open include
global manufacturing sites and divisions. The solutionAgere, The Boeing Company, Hitachi, IBM, LG
had to be flexible and robust enough to supportElectronics, Matsushita Electric Industrial (Panasonic),
changing customer demand scenarios with proactiveMotorola, Seagate Technology, Solectron and
supply/demand planning. THE SOLUTIONWistron. E2open's software-as-a-service model offers
IBM turned to E2open to provide twofaster payback, larger ROI and reduced risk while
customer-proven supply chain management solutions:requiring 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.
and 3 suppliers with consolidated visibility into