Infineon Technologies operates in an industry known for its demand volatility, long product lead times and high capital investments. They provide semiconductor and system solutions, focusing on the needs of modern society to diverse customers worldwide, including auto manufacturers, industrial electronics companies, chip card and security businesses, and information and communications technology leaders. The company’s ability to sense and respond to demand changes, while balancing global production capacity across its more than 20 facilities, can be challenging.
Success Story
Infineon Technologies
Sales & Operations Planning
Infinite possibilities with Infineon
The company
The business challenge
Create a single integrated, multidimensional sales and operations planning process that promotes global collaboration and enables the company to quickly respond to market changes.
The solution
Infineon tested sales and operations planning (S&OP) solutions from a number of different vendors. It selected Blue Yonder’s S&OP, in order to create an integrated solution suite that could provide both a reliable demand forecast and realistic production plans. Out of all of the solutions Infineon evaluated, Blue Yonder’s S&OP was the only solution that fulfilled the functional requirements of volume planning and production maturity.
“Our new solution is a kind of revolution for Infineon because, with S&OP, we link a lot of single processes into one tool. Now we can combine our demand planning activities with capacity calculations and the capacity confirmation, and at the end we have a constrained plan.”
–Senior Director of Supply Chain Engineering, Corporate Supply Chain
Multidimensional results
“When we compare the time before using the S&OP solution, we offered our internal customers a fragmented view of planning. We now have the possibility to combine all the different views of planning. Because S&OP is integrated with our other Blue Yonder software, it’s a combined solution that serves the long-term forecast with short-term production programs. Demand, supply, capacity and load are always synchronized and calculated together,” said Senior Director of Supply Chain Engineering, Corporate Supply Chain.
Solution benefits
Reduced planning effort by 30 percent. Cut forecasting lead time from four weeks to two weeks. Decreased planning errors up to 90 percent. Reduced forecast adjustments by a factor of 10. Increased overall forecast accuracy.
“Blue Yonder understands our business quite well. They also understand the specifics of the semiconductor industry well, and that gave us a good basis to work from.”
–Vice President, IT Supply Chain Management
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