Fairchild Eyes Demand Fulfillment

Electronics firm taps i2 solution to improve order-promising capability

Dallas  October 4, 2002  Fairchild Semiconductor has implemented demand fulfillment software from provider i2 in a bid to further streamline its supply chain processes and improve its order-promising capability, according to an announcement this week from i2.

Headquartered in South Portland, Maine, $1.4 billion Fairchild has 10,000 employees and manufactures power and interface solutions for electronics, automotive and other applications.

Fairchild has been working to implement a series of new, integrated applications to replace its legacy systems and provide a fully integrated enterprise system to manage its business.

One of the critical requirements was for a supply chain management (SCM) solution that would integrate demand forecasting, enterprise master planning and demand fulfillment processes. Ultimately, Fairchild settled on i2's Demand Fulfillment solution to meet this need.

i2 says Demand Fulfillment is designed to simultaneously consider factory materials and capacity capabilities for near term order commitment or quote response.

"We saw this as our opportunity to differentiate ourselves in a highly competitive market by establishing better service levels for our customers," said Dan Janson, director of Business Systems at Fairchild." We put into operation an advanced planning system to enhance our ability to match supply and demand and capture a complete view of supply and plant capacity."

Janson said that from more than 4,300 new requests, the demand fulfillment solution matched the request date 10 percent better than the legacy system. "After about 10 days, we estimate that the revenue impact was about $100,000," Janson said.

Fairchild initially has implemented Demand Fulfillment for its Interface & Logic product line. The company plans to complete the implementation of the i2 SCM solutions for its remaining product lines by the summer of 2003.