AMI Semiconductor Selects Outsourcing Solution for B2B Supply Chain Management

Company hopes handing off tasks to GXS will enable focus to stay on core business objectives, reduce strain on IT resources

Company hopes handing off tasks to GXS will enable focus to stay on core business objectives, reduce strain on IT resources

Gaithersburg, MD — August 8, 2005 — AMI Semiconductor (AMIS) said today that it has selected GXS Managed Services as its outsourcing solution for the management of its B2B e-commerce transactions. AMIS is expected to use the service to reduce overhead costs and better manage data mapping and standards translation for its base of global trading partners.

GXS Managed Services will retire AMIS' aging internal B2B infrastructure, enhancing the company's B2B capabilities while enabling the company to maintain focus on core business objectives and reduce strain on IT resources, according to the provider.

AMIS, a leader in the design and manufacturing of silicon solutions, has global operations in North America, Europe and Asia-Pacific, interfacing with a large base of trading partners. Prior to deploying GXS Managed Services, AMIS used an internally-developed supplier and customer interface that was integrated with its SAP system.

GXS Managed Services was chosen to replace this system because of its ability to extend the value of AMIS' existing SAP investments while providing a superior alternative B2B outsourcing solution and reducing overhead costs. GXS Managed Services will enhance inventory reporting, purchase orders, order changes and delivery schedules between AMIS and its trading partners.

"To effectively compete in today's semiconductor manufacturing industry, we knew we needed an outsourcing solution that would provide us with cost savings by boosting the efficiency of our complex supply chain and allowing us to redirect our IT resources to internal projects," said Roland Smith, director, supply chain, for AMIS. "Given its ability to support a wide range of global data standards and its assortment of B2B program capabilities, GXS was a natural choice for us. We are confident that GXS Managed Services will streamline our overall supply chain, strengthen our partner relationships and provide greater order management capabilities."

Through its use of GXS Managed Services, AMIS said it is positioned to take advantage of the many features of the GXS Trading Grid, including visibility solutions and business process management capabilities. As a part of the GXS Trading Grid platform, Managed Services offers the hosted infrastructure to conduct a global B2B program, including data translation, transaction management, systems administration and supplier performance reporting capabilities.

"Outsourcing IT systems removes burdens for businesses of all sizes and in every industry. For high-tech manufacturers, it no longer pays to focus on much besides core business capabilities," commented Steve Keifer, vice president of industry and product marketing at GXS. "AMIS will be able to grow its supply chain without making additional investments in infrastructure and personnel. With GXS' assistance, supply chain management and scalability will become a transparent and seamless function for AMIS."

AMIS employs more than 2,500 people worldwide. Approximately 950 work at the company's headquarters, manufacturing and engineering facilities located in Pocatello, Idaho, while nearly 700 are employed at the company's manufacturing facilities and European headquarters in Oudenaarde, Belgium. Still another 500 are employed at the AMIS sort and test facility in Manila, Philippines.

In addition, AMI has design, sales and technical support centers located throughout the world. With such a diversified employee base and suppliers in nearly every continent, AMIS needed a global supply chain solutions provider that could ease the complexity of AMIS' trading partner network while providing an equal level of support to every B2B exchange function.

According to Yankee Group, "Managed services providers can help organizations lower the cost to serve customers and suppliers, and ensure they can meet the changing requirements of their trading partner community. This is because they are a faster and more cost-effective option for deploying B2B e-commerce to a wide trading partner base due to their expertise, experience, existing network and shared infrastructure."

For more information on outsourcing, see these articles.

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