TOKYO -- Mitsubishi Electric Corp.'s semiconductor unit plans to invest 20 billion yen ($163 million) to implement a global Internet-based supply chain infrastructure during the next 18 months, the company announced today (March 22).
The Japanese chip supplier said the new online system will dramatically shorten the time it takes to ship products to customers around the world and reduce the cost of its semiconductor business.
"Over the next 18 months, we will revamp our entire semiconductor supply chain management infrastructure including IT systems, software applications, and business processes," said Koichi Nagasawa, senior managing director of Mitsubishi and president of the company's Semiconductor Group. "We will flatten organizational layers to cut decision-making and information response time. And, we will link our 10 worldwide production facilities with our global sales offices and customers."
With the new supply-chain system, Mitsubishi aims to:
Deliver a response to a customer's demand forecast within 48 hours;
Convey a committed delivery date to a customer order within 24 hours;
Ship chip products from any Mitsubishi production site or regional inventory location to any customer "on the planet" within 48 hours of available-to-promise commitment;
Provide customers with virtual real-time views by customers into order management and production status via the Internet;
Ultimately create server-to-server links between Mitsubishi and customer systems.
Mitsubishi said it estimates that the new system will reduce administrative costs by 50% and save 30% in inventory warehousing and transportation costs.
The company plans to deploy a 200-person, cross-divisional task force to being implementing the supply-chain system in May
"We will start connecting major customers this summer," Nagasawa said. "By March of 2002, we plan to be ready to introduce the system across our entire semiconductor base."