2005 Supply & Demand Chain 100 Case Study  Fairchild Semiconductor International / Management Dynamics, Inc.

Profiles in Supply Chain Enablement: Global company simplifies and streamlines international trade among and between multiple countries

Profiles in Supply Chain Enablement: Global company simplifies and streamlines international trade among and between multiple countries

Company: Fairchild Semiconductor International (South Portland, ME)
Company Size: Large
Company Sector: Manufacturing (Electronics)
Area(s) of Enablement: Sourcing, Fulfillment/Logistics, Decision Support
Enabler: Management Dynamics, Inc. (Rockville, MD)

SDCE 100 2005Case Study: Fairchild Semiconductor is the leading global provider of high-performance power semiconductors used in electronic devices for the computing, communications, consumer, industrial and automotive markets. Founded over 35 years ago, Fairchild now ships more than 17 billion units a year from six countries into over 45 countries worldwide, seven days a week year around.

"Fairchild has grown substantially, with eleven acquisitions in the past seven years, recently establishing new design and manufacturing facilities in Korea and China," said Bob Scribner, senior manager of global logistics for Fairchild. "As the company continued to innovate and expand globally, the need for effective global trade management strategies was crucial to ensuring efficient cross-border transactions."

Furthermore, with 36 direct-sales offices in 17 countries and a variety of processes that came with each acquisition, Fairchild needed to develop standard business processes worldwide that were easily repeatable and scalable and at the same time create electronic trade documents to support customs clearance.

The Solution

To help achieve these objectives, Fairchild selected a software solution from Management Dynamics. Together, Fairchild and Management Dynamics designed, configured and implemented a solution that streamlines and automates Fairchild's global logistics process, ensuring full compliance with various country-specific trade rules and regulations.

Currently, Fairchild uses Management Dynamics Trade Export Solution to address its trade compliance requirements, including shipping documentation and Customs clearance of its semiconductor products worldwide.

Results

Working with Management Dynamics, Fairchild can ship goods with confidence. The solution offers Fairchild a seamless and automated export compliance process, providing an auditable shipping record along with electronically archived and easily retrievable trade documentation, thus eliminating the often daily manual and tedious tasks of trade compliance.

Today 90 percent of all of Fairchild's shipments are pre-cleared. Fairchild has been able to produce accurate and standardized trade documents to all origins and destinations. Increasing consistency and dependability of its documentation has significantly improved its customs clearance rates. Additionally, Fairchild has achieved shorter transit times, reduced shipment delays and overall inventory carrying costs.

For more stories of successful supply chain implementations, read the "2005 Supply & Demand Chain Executive 100" article in the June/July 2005 issue of the magazine. Also watch the Today's Headlines section of SDCExec.com every Tuesday and Thursday for more in depth best practices drawn from this year's Supply & Demand Chain Executive 100.
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