In 1998, STMicroelectronics has started e-chain optimization (ECHO) project with one of its major clients in a joint effort to streamline the company's planning and replenishment operations. Before the echoes, inefficient manual processes and disable were used in accordance with customer demand with impressive power ST. This, coupled with high demand uncertainty, has led to inefficient use of production capacity, inventory management, product-mix decisions, and investment potential. The project ECHO, new B2B system, based on the standards RosettaNet, was put in place to enable collaborative planning and replenishment. New solutions should be based on vendor managed inventory (VMI) model. Echo was a success, allowing both business partners significantly increase the efficiency of their internal operations and increase customer satisfaction while reducing their inventory-related and other operating expenses. In addition, it has helped contribute to greater customer loyalty. Discovery process for the first implementation of the project took a total of three years and requires significant investments from both business partners. To get the most benefit from these investments, ST had to use the key findings and duplicate RosettaNet-enabled business processes to other trading partners. However, ST, is likely to face a number of serious obstacles along the way, such as the reluctance of other customers to make the required initial investment. "Hide
by Barchi Peleg Source: Stanford Graduate School of Business 23 pages. Publication Date: November 6, 2004. Prod. #: GS36-PDF-ENG
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