The supply chain management of chip companies has fallen behind in the straight line. Who is the future?

Author:Acloudear , 2022-09-10 09:37   
For the supply chain management of chip companies, SAP’s digital core has demonstrated its superb ability to drive business.

Nowadays, the chip market is in great demand, but it also faces a series of practical challenges such as personalization, particularity, fast iteration and long cycle. In addition, changes in the external environment, such as the epidemic and political situation, have had a great impact on the smooth operation of our chip supply chain and pose a huge challenge to the supply chain management of chip companies. How to deal with the impact of diversified factors and different degrees in the supply chain? Whether it is the first chip design company or other chip companies, they must have a flexible and agile supply chain to ensure customer demand and win market opportunities in such a complex and changeable situation.


McKinsey’s research on the impact of different factors on semiconductors


In reality, in the supply chain management of chip design companies, it is difficult for internal business departments to communicate with each other, and information access is limited, so it is difficult to establish a responsive planning process. The lack of information exchange will lead to a lack of coordination in the R & D, sourcing, sales, manufacturing and planning processes of chip companies’ supply chain management, and it is difficult to form a rapid response mechanism once changes occur; The way of communication with external partners tends to be traditional, and there are problems such as limited visibility, difficult collaboration, delay time and high risk of errors. What about the supply chain management of chip design companies and chip companies?


In this issue, chip semiconductor digital transformation expert Sixiang network will bring you some references on advanced chip company supply chain management, so as to realize smart supply chain.


Straight line chip supply chain management has been out!

It’s not that the supply chain management system of the chip company can make the supply chain smooth in an all-round way! It mainly depends on the mode of supply chain management of chip design companies and chip companies.


Linear supply chain management


The traditional supply chain management of chip companies is mainly linear mode, and the partners are realized by linear information processing. The information processing method is too slow, too inaccurate and too costly, which makes chip companies vulnerable to being preempted by other competitors with high coordination in the supply chain. When they encounter sudden supply chain disruptions and other situations, they are often more likely to fall into difficulties. When the traditional linear chip supply chain management mode has been out, what should chip companies do with supply chain management?


Smart chip company supply chain management is the future!

As we enter the era of industry 4.0, digitalization and smart enterprise, there is no doubt that the supply chain management of our chip companies must also adapt to the transformation of smart enterprises in the digital era. With the help of digital technology, it can provide important business information for our chip design company and even the supply chain management of chip companies in the whole network, improve the real-time data analysis ability of enterprises, and strengthen the cooperation between departments and trade partners, so as to create a fast responding intelligent supply network. This is the secret of supply chain management of leading chip companies.


Understand the difference between linear and intelligent architectures


Just talking about the concept is not meaningful. We may as well show you the excellent solutions of supply chain management of leading chip companies and chip design companies through the SAP system adopted by 9 of the world’s top 10 semiconductor enterprises. In SAP’s view, the goal of supply chain management of chip companies is to improve flexibility and responsiveness, ensure excellent operation in the changeable global network, and provide satisfactory services to increasingly picky customers.


Through the above figure, we can see that SAP chip company’s supply chain management solution has reconstructed the traditional linear management mode, changed from the traditional linear supply chain to a digital intelligent supply chain that shares a unified plan with all key personnel and partners, improves visibility, agility and responsiveness, and is more adaptable. From design to operation and maintenance, a closed loop within the business network is formed.



Through the above network architecture, we understand the flexible supply chain brought by SAP. How can this resilient supply chain help our chip companies achieve efficient collaboration in the supply chain through supply chain management? Let’s have a general understanding through the following figure.


Chip semiconductor supply chain collaboration, integrated solutions


In fact, SAP’s digital core has demonstrated its superb ability to drive business in the supply chain management of chip companies. The whole supply and demand network can understand demand changes in real time; Single integrated material demand planning (MRP) driven by centralized demand planning; Confirm orders in real time according to customer allocation and supply plan. In fact, the smart and resilient supply chain is also an indispensable part of our Chip Smart factory business. Among them, SAP chip company’s supply chain management can realize the closed-loop mode of whole process business virtual visibility and control point, supply chain KPI monitoring and analysis.



The above are some excellent solutions of supply chain management of chip companies that we share with you today. In the field of chip semiconductors, SAP also has a large number of best business practices to help our chip design companies and chip manufacturing enterprises restructure chip supply chain management through digital technology, achieve efficient coordination from inside to outside, and calmly cope with changes in the supply chain. For more chip companies’ smart supply chain solutions, please visit the official website to learn more.

This article "The supply chain management of chip companies has fallen behind in the straight line. Who is the future?" by AcloudEAR. We focus on business applications such as cloud ERP.

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