Client

STMicroelectronics

CONTEXT

Unlike many of its competitors, STMicroelectronics owns its own wafer-making fabrication plants. In addition, it has more customers and more individual products than its major competitors. As a consequence of this complexity, streamlining the supply chain, including reducing cycle time, has become a key priority and may offer an important element of competitive advantage. Management sought to align all key functions around a new vision for the supply chain and to collaboratively build an action plan to ensure measured transformation over the subsequent months and years.

PROCESS

Fifty senior managers from each relevant function spent two days at a Matter Solutions DesignShop in Geneva. They built potential models of a successful ST supply chain, selected key elements of the strongest models, and developed a work plan to ensure that this new approach will generate efficiencies, cycle-time reduction, and greater customer satisfaction. Several months of preparation ensured that the necessary building blocks were in place to ensure a successful DesignShop and to subsequently launch a transformational change process.

RESULT

The results of the DesignShop were extremely persuasive and coherent. Most of all, the convergence of senior management thinking on supply chain vastly increases the chances of a quick and effective implementation of the selected model. ST’s leadership is currently driving the agreed model and supervising the changes to business processes, to systems, and to organization and skills necessary for the success of the to-be supply chain.