Dedham, MA (PressExposure) November 08, 2011 -- insiderPROFILES magazine announces a new article, "Improved Supply Chain Processes Bring Intel Real Savings" by Features Editor David Hannon, now available in its October-December 2011 issue.
To produce its cutting-edge semiconductors and microprocessors, high-tech giant Intel needs the very latest manufacturing equipment - and those tools don't come cheap. Intel's average capital expenditure is higher than the GDP of several nations. Naturally, Intel wants to get its capital equipment up and running as efficiently as possible, as well as take advantage of any and all supplier discounts that are offered.
Paying suppliers on time often affords companies a small percentage discount. But when the supply volumes are in the millions, any percentage saved quickly becomes substantial. This case study explores how Intel implemented a new system (based on SAP technology) to pay its suppliers sooner and dramatically improve its discount capture rate for capital purchases from ~50% to over 95%, exceeding the corporate goal and resulting in millions of dollars in cost savings each year.
"Since we implemented this system, some suppliers are selectively shipping Intel tools first off the line, because they know they will get paid sooner than if they were to ship to another customer," says Erik Hertzler, Capital Supply Chain Staff Engineer at Intel.
This case study demonstrates how Intel designed and implemented an automated process that would ensure its suppliers were paid early enough to capture key discounts, all with real-time visibility into process status and with alerting capabilities for relevant stakeholders.
"Improved Supply Chain Processes Bring Intel Real Savings" is now available at http://insiderprofiles.wispubs.com/article.aspx?iArticleId=6124.
The article can also be found on page 11 of the October-December 2011 issue of insiderPROFILES, both in print and via the insiderPROFILES mobile app for Apple and Android devices.
From the publisher of SAPinsider, insiderPROFILES magazine offers detailed profiles of today's most influential business and IT leaders - their strategies, best practices, and how they leverage SAP, SAP BusinessObjects, and SAP NetWeaver solutions to achieve their objectives. For more information, and to activate your free subscription, visit http://insiderprofiles.wispubs.com/. insiderPROFILES is published by WIS Publishing.