ON Semiconductor Looks to Supply Chain Apps to Power VMI

Manufacturer implementing Manugistics solutions for vendor managed inventory to drive agility in dynamic market

Washington, DC — October 31, 2003 — ON Semiconductor has selected supply chain management solutions from Manugistics to provide a vendor managed inventory (VMI) solution as the company moves to reduce its overall systems costs and position itself to better respond to dynamic market conditions.

Phoenix-based ON will deploy the Manugistics solution as part of a program to update and upgrade its application systems' portfolio. The manufacturer offers an extensive portfolio of more than 15,000 products, and ON recognized an opportunity to leverage supply chain technology for its collaborative VMI requirements as the company seeks to gain greater visibility into demand its products.

ON views its VMI program as a competitive differentiator since the initiative drives over 30 percent of the company's business. With the Manugistics solutions in place, ON will be looking for this initiative to help ensure that volume and pricing agreements are visible so that planners can make optimal business decisions.

"Our technology powers some of the most popular products in the world, from trendy mobile devices to high end cars, and our clients — including Robert Bosch, Motorola, Nokia, Sony, Siemens and Samsung — demand continued innovation on our part to help them continually wow consumers with new product introductions," said Dave Wagner, chief information officer for ON. "Our continuous improvement in supply chain performance is a key initiative that enables us to focus on exceeding these high customer expectations."

"Manugistics' collaborative vendor managed inventory solution can help ON Semiconductor meet the evolving needs of their powerful client base and attract new customers, while continuing to bring new products to market," said Manugistics Vice President Doug Ertz.