Managing the Customers' Inventory

STMicroelectronics deploys demand replenishment solution to dynamically manage customers' inventory, replenishment and distribution

San Mateo, CA  April 11, 2002  STMicroelectronics, the world's third largest independent semiconductor company, has deployed inventory management software from Saltare in a bid to dynamically manage its customers' inventory, replenishment and distribution activities.

Headquartered in Geneva, STMicroelectronics (ST) is a $6.36 billion company formed as a result of the June 1987 merger of SGS Microelettronica of Italy and Thomson Semiconducteurs of France.

The company has implemented Saltare's Leap Intelligent Demand Replenishment (IDR) application, a module in the solution provider's Leap Adaptive Inventory Control (AIC) software, as part of its overall e-supply chain management (e-SCM), RosettaNet-compliant solution to reduce inventory management costs, optimize utilization of manufacturing and logistics capabilities, improve revenue control and enhance customer satisfaction.

STMicroelectronics, which also manages the on-site inventory of ST-supplied components for many of its customers, required real-time visibility of inventory and consumption levels at multiple customer locations to provide the highest level of service without increasing costs. ST implemented the Saltare Leap IDR application to gain the necessary level of visibility into inventory and consumption levels, enabling the company to use the real-time data to optimize replenishment plans and synchronize fulfillment with actual demand.

"Saltare gives us real-time visibility into our global inventory and our ST customers' distributed inventories, providing us the flexibility and intelligence to proactively address changes to not only our business, but our customers' businesses as well," said Gilles Sanchez, corporate supply chain concept owner at STMicroelectronics. "As a result, we are much smarter and faster about how we service our customers."

ST collaborates closely with its customers by manufacturing, allocating and replenishing products based on demand forecasts. The Saltare Leap IDR module enables ST to dynamically manage inventory levels and optimize performance by monitoring and resolving exceptions to forecasted customer consumption plans before they impact business. Based both on planned and actual demand information, the Saltare solution allows ST to manage the risks of holding inventory at both company and customer sites by continually updating correct inventory levels and optimizing replenishment plans.

For insights into how companies are looking to a new, distributed and more flexible model of optimization as the key to reducing inventory levels, read the Envision column by Dr. Cosimo Spera, co-founder and CEO of Saltare, in the June/July issue of iSource Business.