Intel is one of the tech giant and semiconductor manufacturing companies, and its SCM strategy and network plays a significant role in its growth and development. Today, we’ll discuss Intel supply chain management; its various components, strategies, advantages, and disadvantages.
The internet, computer, and hardware industry has got fierce competition and there are various leading brands operating business in this industry. Intel has established a market position as a top semiconductor chip designer and manufacturer. Some of the main components that Intel produces for computers are as follows;
However, some of the key statistical facts and figures about Intel are as follows;
- More than 600 production and manufacturing facilities
- Approximately 107400 employees are working for the company to manage its worldwide operations
- Gartner declared Intel as the top 25 Supply Chain in 2017, ranked at the 6th position
Intel Supply Chain Structure
Intel has a network of over 17000 suppliers and they are contributing SC operations in more than 100 countries across the world. The company offers the following types of material to its clients;
- Travel services
- Non-production material
- Logistics transportation
- Raw material
Mining & Producing
It is the first layer of developing silicon wafers and it comprises hundreds of steps and parts. It would take approximately 10 weeks for the divisions of wafers to become integrated circuits.
After the manufacturing of the integrating circuits, you would send them for E-testing for sorting and analysis based on the functions that they are intended to do. The e-testing would take approximately 10 weeks, and the whole SC process would take approximately 20 weeks.
Management & Forecasting
The management and forecasting would complete 50% of orders within 4 weeks by employing management practices and efficient strategies.
Components of Intel Supply Chain Management
Some of the main components of Intel supply chain management are as follows;
The SCM strategy of Intel depends on advanced planning and optimization at the manufacturing stage. The SC managers of the company employ well-developed software systems and applications to track and analyze the following;
- Customer’s requirement
- Inventory levels
- Production scheduling
It helps the company to make sure that its productions and manufacturing processes are relevant to the company’s needs and requirements. It makes sure that the supplies and materials are available for manufacturing when needed.
Intel has established worldwide partnerships with suppliers to access the best supplies and materials at the most competitive price. The company collaborates and coordinates with suppliers to make sure the timely delivery of its components by meeting all the quality standards.
Intel employs automation technology at the distribution phase to streamline the delivery and shipping of its products. In order to track the inventory and shipment level, the company employs automated technology like barcode scanners and RFID. It helps the company to accurately deliver the products to the end customers.
In order to reduce potential risks and make sure the quality of products, Intel implements risk management and quality control processes. The quality assurance team of the company regularly analyzes the quality of the product at various stages of the SC processes. However, the risk management strategies help the company reduce the impact of disruptions in the SC processes.
Strategies for Intel SCM
Some of the main strategies for Intel SCM are as follows;
Risk Management & Quality Control
Intel applies quality control practices to make sure that its products could reach the highest standards. The quality assurance team regularly analyzes products at various stages of the SC processes to make sure that they meet the company’s standards.
Intel employs advanced automation technology to streamline the delivery and shipment of products in the SC process. The technology helps the company to quickly and timely deliver the products to the customers. In fact, Intel employs predictive analytical tools to analyze the needs and wishes of customers in order to optimize its SC processes.
Planning & Optimization
Intel employs sophisticated planning and optimization software and applications to track and analyze customer requirements, inventory levels, and production schedules. It helps the company to make sure that its production and manufacturing process is relevant to the needs of customers, and it makes sure the availability of material and supplies when needed. However, the reason Intel employs analytical tools to recognize the bottleneck issues and make improvements in the SC processes.
Intel has established a worldwide network of suppliers to access the best quality material at the most competitive price. The company collaborates with its suppliers to make sure the timely delivery of supplies and materials. However, it helps the company to increase profitability and reduce costs.
Advantages of Intel SCM
Some of the key benefits and advantages of Intel supply chain management are as follows;
- Remain competitive in the worldwide technology market
- Making sure to receive the best quality material at the most competitive price
- Ensuring the availability of material for production and manufacturing processes are relevant to the needs of customers
- Streamlining shipment and delivery of products with automation technology
- Making sure that the product meets the highest standards with quality control
Disadvantages of Intel SCM
Some of the main challenges and disadvantages to the Intel SCM are as follows;
- Difficult to manage the worldwide network of suppliers and ensuring quality at the same time
- Quick response to changing customer demands is difficult in the highly competitive market
- Nearly impossible to manage external environmental risks factors like natural disasters and political instability
- Need to continuously innovate and develop something new in order to remain competitive
- Costly to employ automation technology to achieve cost efficiency
Conclusion: Intel Supply Chain Management
After an in-depth study of Intel supply chain management; we have realized that Intel is the world’s leading semiconductor manufacturing company. If you are learning about the SCM processes of Intel, then you should keep in mind the abovementioned strategies, components, and statistical facts.
Ahsan is an accomplished researcher and has a deep insight in worldly life affairs. He goes Live 3 days a week on various social media platforms. Other than research writing, he’s a very interesting person.