Low-Cost Countries Operations and Sourcing

Strategic Drivers

• Lower Total Product Cost:
  Leverage lower infrastructure and labor expenses and lower component costs from countries such as China, Southeast Asia, Latin America and Eastern Europe.
• Gain Access to Emerging Markets:
  Establish local presence and gain market share.

Inside Hitachi GST's Rapid Supply Chain Deployment: Project Launch to Initial Go-Live Takes Just Four Months
Learn how Hitachi GST integrated the storage divisions of Hitachi and IBM, transforming its global supply chain into a demand-driven model that responds quickly to changing customer demand.Access Case Study

Execution Challenges

• Increased Supply Chain Costs:
  Operating and sourcing in low-cost regions increases costs in areas such as logistics, inventory, taxes and tariffs, insurance, expediting, and other cost components resulting in a higher total landed cost.
• Longer and More Varied Lead Times:
  Increased supply chain complexity including custom clearance, ocean freight, and local freight forwarders increase delivery lead times and performance variability potentially leading to increased inventory and/or lost revenue.
• More Complex Supplier Management:
  Communication of requirements, capacity, and execution status are more difficult to do in low-cost regions due to language, time zone, business abilities and technology differences results in more opportunities for demand and supply to be out of alignment and increased management costs.

Proven Approach

Industry leaders that have successfully executed Low-Cost Country Initiatives find that sharing a single view of information and processes between themselves and their trading partners is essential.

• Rapid Time to Value:
  E2open on-demand solutions offer the industry’s fastest time to value – most implementations are up and running in 90 days or less. This is made possible by E2open’s Software-as-a-Service (SaaS) delivery model, comprehensive trading partner on-boarding and fine-tuned best practices.
• Lower Total Cost of Ownership:
  E2open offers an economical and predictable monthly fee, and E2open SaaS means no additional costs for upgrades, maintenance, operation or support, and all partner on-boarding is provided.
• Continuous Value Roadmap:
  With at least two product releases every year delivering powerful new functionality and unique value-added services, E2open consistently delivers long-term value by enabling you to meet continuously changing market demands.
• Greater Data Accuracy:
  E2open delivers highly accurate data, enhancing visibility across the supply chain, and adding to the value of your other enterprise management technologies, such as ERP.
• Seamless Integration:
  E2open provides seamless integration between internal enterprise applications and trading partners – including suppliers, customers, distributors and logistics providers – enabling you to maximize your current investments in ERP and other technologies. E2open offers a portfolio of integration options covering 100% of your extended value chain – regardless of your partner’s technical sophistication, enabling even faster time to value. Options include all forms of B2B communication; integration to any B2Bi server; direct integration to SAP, Oracle, and other ERPs; a Web portal; and use of traditional formats such as Excel and PDF.
• Proven Success:
  E2open has deployed more successful multi-enterprise supply chain management solutions than any other provider – validated by global leaders in the electronics, aerospace and defense, telecommunications, capital equipment, and consumer product industries that use E2open to drive significant improvements in business performance.

Enabling Celestica's Supply Chain Strategy
Celestica's VP of Supply Chain Strategy, Harvinder Sembhi and E2open's EVP, Lorenzo Martinelli discuss Celestica's integrated global supply chain at the June 2007 Managing Automation Progressive Manufacturing Summit.Access Webcast

Solution Requirements

To successfully share a single view of information and processes across multiple companies, industry leaders are leveraging a new class of solution.

• Multi-Enterprise Workflows:
  Multi-enterprise supply chain and procurement workflows providing process automation with alerting and exception management.
• Multi-Enterprise Analytics and Reporting:
  Analytics and reporting against a multi-enterprise data repository for consistent performance management and scorecards across companies.
• Exception Management:
  User configurable event management providing alerting and exception management.
• Operating Unit and Trading Partner On-boarding and Integration:
  Any-to-any integration infrastructure with rapid global deployment capabilities including trading partner on-boarding and system integration.
• On-going Operations and Change Management:
  On-going operations, support and change management, including technology upgrades, measured against a global Service Level Agreement (SLA) and providing a reduced Total Cost of Ownership (TCO).