Create a free Manufacturing.net account to continue

Supporting Supply Chain Initiatives With A SaaS Solution

Managing communications with a global supply chain of thousands of suppliers, logistics companies, and customers around the world is no small feat. As a result, one company turned to a SaaS solution.

Managing communications with a global supply chain of thousands of suppliers, logistics companies, and customers around the world is no small feat. As a result, one company turned to a SaaS solution.

Celestica is a global leader in the delivery of end-to-end product life cycle solutions. Through its expertise in design and engineering, electronics manufacturing, and supply chain value-added services, Celestica enables its customers to keep their commitments and stand out in their markets. With 38,000 employees in 14 countries worldwide, Celestica has over 100 customers and manages a global supply chain that consists of thousands of suppliers.

The Challenge

Managing communications with a global supply chain of thousands of suppliers, logistics companies, and customers around the world is no small feat. Celestica’s processes impact hundreds of thousands of part numbers. Celestica must strictly comply with the specific contract terms given by its OEM customers, including expected time, cost, and location for delivery. Given the volume of suppliers, communication, and information exchange, Celestica needs to be timely in its response to effectively address potential inventory problems before they occur and before effects are felt all the way down the supply chain.

Celestica’s global operational network is aligned to meet its customers’ needs. The company puts significant focus on seven mega-sites—two in the Americas, one in Eastern Europe, and four in Asia—with over 80 percent of its business flowing through these sites.

Managing response times and supply chain visibility is a challenge many companies with complex supply chains face. Celestica needed to respond quickly when customer demand unexpectedly shifted. Data on stock availability, time of delivery, and desired inventory levels must be timely and accurate—an exceedingly difficult task when relying on spreadsheets, email, and faxes. Celestica needed the ability to connect and collaborate with its vast worldwide network of trading partners and customers in real time.

The Solution

Celestica set out to implement the following capabilities to support its supply chain initiatives:

• Automated ERP system updates with supplier commits

• Automated communication of purchasing documents without buyer intervention

• Reduced investment required in IT infrastructure (to support supplier connectivity)

• Improved inventory performance

• Inventory visibility into hubs

• Quicker response to demand changes from customers and suppliers

• Better commits to customers based on improved supply visibility

In order to achieve these goals, Celestica selected E2open—the pioneer and leader in software-as-a-service (SaaS)-based demand-supply network solutions—in order to transform its supply chain. To begin, Celestica implemented the E2open Multi-Enterprise Foundation to help synchronize supply and procurement processes across the end-to-end supply chain. Ultimately, the goal would be to transform Celestica’s supply chain into a dynamic, flexible, fully automated demand-supply network.

The E2open solution, branded LiveShare by Celestica, provides near real-time visibility and collaboration across the extended demand-supply network. Specifically, the E2open Multi-Enterprise Foundation enables visibility into inventory data—increasing collaboration with trading partners, and ensuring that operational risks are minimized and that all data is accurate. Celestica also elected to implement E2open Collaborative Order Management, E2open Collaborative Supply Planning, and E2open Collaborative Inventory Management—products designed to deliver automated order management, inventory management, and demand-supply synchronization processes.

Celestica’s Executive Vice President of Supply Chain Solutions, and the leader of Celestica’s Supplier e-Collaboration initiative, explained that “Tools such as LiveShare, an e-collaboration tool, are in line with our strategy to use the most innovative technologies to enhance visibility, communication, and collaboration across the supply chain and to help lower the TCO for our customers.”

Rapid, low-cost deployment using E2open’s SaaS model ensured the participation of a large number of suppliers, enabling Celestica to realize supply chain improvements quickly. The SaaS model also minimized supplier operational risk, as it does not require installation of on-premise hardware or software.

With LiveShare, Celestica is able to transmit forecasts from its ERP system and send them directly to suppliers. They can also transmit purchase order (PO) requirements and receive commitments back from suppliers—all in an automated fashion. Supplier managed inventory (SMI) processes are also enhanced through alerts and visibility.

Further supply and demand data from the entire global network is aggregated to generate a real-time execution status report that is visible to all supply chain partners.

The Results

In today’s fast-paced, hyper-competitive electronics industry, Celestica can’t afford to rely on a supply chain that is not agile, savvy, and adaptive. Celestica’s customers are demanding, and require the company to respond with the right products at the right times.

With the LiveShare solution—complete with multi-enterprise platform, inventory and order management, and demand-supply synchronization—Celestica has effectively transformed its entire supply chain. In place of a primarily manually-driven supply chain is an automated, dynamic demand-supply network, offering visibility, control, and collaboration across all trading partners.

Since March 2007, the date of initial “go live” with the LiveShare solution, Celestica has realized the following benefits:

• Up to 20 percent improvement in buyer productivity and efficiency

• 33 percent improvement in supplier response times

• 50 percent improvement in compliance to PO/demand changes

• Improved data integrity

• Reduced current and forward investment in EDI

Additionally, direct benefits of using E2open’s SaaS model include faster implementation, lower TCO, more real-time data and enhanced data accuracy, high user adoption, and improved flexibility to adjust to dynamic market conditions.

About E2open

E2open is a leading provider of cloud-based supply chain management solutions. The company provides software and services that enable visibility, collaboration, and control across large trading partner networks. Visit www.e2open.com to learn more.

 

More in Software