Case Study

Improved material traceability and streamlined logistics processes decrease losses and back orders for semiconductor major

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A US$12 billion global semiconductor manufacturer operating in an engineering-to-order model

Industrial Manufacturing

Business challenges:

  • Lack of material traceability and accountability across logistics and build cycle (US$2 billion material spend)
  • High backorder rate (23–40%) requiring manual tracking/routing to work-in-progress orders

Genpact solution

  • Scan-in and scan-out process design to provide material traceability from receiving to customer shipping
  • Track-and-trace process design based on proven scan gun/barcode mechanism that provides visibility by each piece or part
  • Process customized for day 1 discrete job release material and backorder material to improve efficiency in logistics

Business impact delivered

Improved material traceability and streamlined logistics resulting in:

  • 5% decrease in manufacturing material loss
  • 35% decrease in missing or wrong parts (customer defects)

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