Supply Chain Management at Philips Display Components

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Supply Chain Management at Philips Display
Components

• Scope of Supply Chain Activities
• The products
• The customers
• The supply chain
• SCM Strategy Architecture
• Philips Display Components SCM Roadmap

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The products
3
Display ComponentsCompany Profile

• Total workforce 23,000 worldwide
• Worlds largest manufacturer of Cathode Ray
  Tubes
• Number one in Color Television Tubes,number four
  in Color Monitor Tubes

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The customers
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The supply chainCR-Tube factories in each of the
main regions
Germany Aachen
UK Durham
China Nanjing
USA Ottawa
France Dreux
Austria Lebring
Taiwan Hsinchu Chupei
Brazil S.J. dos Campos
Spain Barcelona
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Philips Display Components - Internal supply chain
Sub-components
Components
Customers
Tubes
Sales
Belgium
Belgium
Other Parts
Sittard
Europe
Aachen
Multi-forms
Sittard
Eindhoven
Masks
UK
UK
Durham
Eindhoven
Guns
Germany
Germany
Sittard
Gun Parts
Dreux
Aachen
Glass
France
France
Glass Base
Stadskanaal
Barcelona
Simonstone
Italy
Glass
Italy
Blackburn
Lebring
Cathodes
Deflection Unit
Washington
Spain
Spain
CMT
N. America
Mask/Screen
Delafoil
Ottawa
TV Tubes
Juarez
Deflection Unit
Glass Base
Beamstream
Beamstream
Guns
S. America
Recife
Sao José
TV Tubes
Sao José
Deflection Unit
Souzano
Cones
Capuava
Glass
Asia
Deflection Unit
Chungli
Taiwan
Taiwan
Chupei
Hong-Kong
Hong-Kong
Chupei
Nanjing
TV Tubes/CMT
China
China
Guns/Deflection Unit
Nanjing
Hsinchu
Singapore
Singapore
Chupei
Glass/Cones
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Supply Chain Management at Philips Display
Components

• SCM Strategy small steps in an Overall concept
• 1. Definition of overall architecture
• 2. Realisation improve of data exchange
• internal
• with customers
• with suppliers
• 3. Add optimisation functions

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Supply Chain Management Architecture
Basic questions

• Central vs. decentral Functions - Systems
  solutions
• How many levels of planning
• Definition of order
• Forecast
• Deal
• Blanket order
• Call off order
• in relation to ERP system
• Inter relation with ERP planning and scheduling
  functions

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Supply Chain Management Architecture
Customers Orders Forecasts
Suppliers
Global Forecasting Planning
Allocation routing
Demand supply
comp factories
tube factories
Call off orders customer
sub comp
Suppliers
scheduling
scheduling
scheduling
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Supply Chain Management Architecture
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1. Use of available ERP planning functions
Planning scheduling tools
ERP
- high number of complex interfaces less
changes in working with system
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2. Separate transaction administration from
planning
requirements
ERP
Planning
stock
book transactions
production, shipment and plans
operations
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2. Separate transaction administration from
planning
lt 1990
1990-2000
2000 - 2010
Activity planning
OLTS (ERP)
FA
Transaction registration
Weak interface between goods movement, value
added processes and FA.
Good integration of goods movement and FA,
limited planning functionality.
Combine best solutions
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Supply Chain Management Roadmap Philips DC
Phase 1 Concept definition Phase 2 New integrated
Global Forecasting Planning System Paragon
GDM (Global Demand Management) and Paragon
SCP (partly, basic functions) Phase 3 Detailed
scheduling concept, implement support tools Phase
4 Add optimisation tools
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Supply Chain Management Roadmap Philips DC
Partners

• SuppliersSCM Tools
• Paragon
• Oracle

Philips DCUser Requirements
System integration Origin
solutions
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Supply Chain Management Roadmap Philips DC