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Case study Company name: Philips Semiconductors
| Last updated: 16 Jan 2006 |
Philips Semiconductors, a leading international semiconductor supplier, increased supply chain accuracy, reduced manual labor and simplified inventory tracking when it contracted IBM Business Consulting Services. |
Business need As part of an initiative to improve efficiency and enhance customer service, Philips determined it needed to streamline information management processes within its manufacturing and distribution supply chain. Specifically, the company wanted to improve the speed and accuracy of its inventory information management processes. Philips saw the tremendous opportunity to leverage its own leading-edge radio frequency identification (RFID) technology to deliver realtime insight into its business-critical supply chain processes and inventory information. |
Solution IBM Business Consulting Services Philips turned to IBM Business Consulting Services to help infuse its supply chain with more responsive, efficient inventory management processes. Using Intel RFID technology, IBM Business Consulting Services helped the company design, develop and implement a next-generation manufacturing and distribution supply chain. An RFID tag can now be embedded with a wide range of data, including everything from a product description to an expiration date and price; in contrast, barcode data can be used only to identify groups of products. |
Results The introduction of RFID technology enabled Philips Semiconductors to reduce receiving and palletization cycles by 50 percent, reduce sorting and tracking turnaround times by 60 percent and improve delivery reliability and inventory turnover while shortening billing cycles. |
Customer testimonial "By combining IBM market leadership with Philips technology strengths, we will bring to market integrated, end-to-end solutions for major and consumer goods manufacturers, couriers and logistics and distribution companies."
– Heinze Elzinga, global strategic alliances and programs, Philips Semiconductors |
Customer information | Philips Semiconductors | | Philips Semiconductors, headquartered in Eindhoven, The Netherlands, employs approximately 33,000 employees in more than 50 countries. With approximate sales of US$4.3 billion in 2002, Philips Semiconductors is one of the world's top semiconductor suppliers. It aims to be the leading provider of semiconductor-based solutions for connected consumer and communications applications. Philips Semiconductors has 18 manufacturing and assembly sites, 30 design centers, four system labs and more than 100 offices. Manufacturing facilities are located in the U.S., the Far East and Europe, serving customers worldwide. |
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