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| NVIDIA Writes the CODE for a World-Class Supply Chain Posted: 12 Mar 2012 11:10 AM PDT  Supply chains are the lifeblood of high-tech companies – getting the right materials to the right people in the right places at the right time is a critical task. As NVIDIA's business has expanded into markets such as mobility and high-performance computing, our supply chain has become increasingly complex. Each year we sell tens of millions of chips involving high-value components, multiple subcontractors and difficult-to-predict capacity constraints. Other challenges include the proliferation of part numbers, long lead times for materials, such as wafers, and potential delays at multiple points in the production process. Working with enterprise consultancy Intrigo Systems, we have completed a comprehensive blueprint for a supply chain redesign that will bring a whole raft of benefits.
At the center of our redesign is something we call "CODE" – a Complete, Optimized Data Engine that is built on our SAP systems. CODE moves us away from a spreadsheet-driven, order-based model to a supply chain that dynamically accounts for factors such as varying postponements and fluctuating component stocks. For our customers, the improved supply chain better assures we're able to meet their demand for our products. For NVIDIA, CODE will enable us to deploy production plans that optimize our production cost, capacity and flexibility by incorporating capacity constraints, build strategies and business rules into our SAP planning engine. The implementation itself takes a phased approach as it integrates with existing business processes and platforms to minimize risks and ease adoption within the company. We expect the final phase – the launch of CODE – to go live by next year. When it does, our supply chain will be able to adapt as we grow and enter new market segments with increasingly sophisticated products, which may require additional inventory components and sources. The re-architected supply chain will be easier to maintain and use master data across the business with easily explainable results – all in all, creating a supply chain that enables, rather than hinders, NVIDIA's growth. |
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