AMD Case Study

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AMD has incorporated strategies that integrates IT solutions across all the teams with the help of IT to support efficient and responsive supply chain management. A standard ERP (Enterprise Resource Planning) system, SAP has been adopted.
AMD uses hybrid Push-Pull: Batch dynamic production controls.
Current supply chain challenges that AMD is facing:
• Economic uncertainty due to global presence
• Pressures from competition
• Sensitive towards cost
• Different technical challenges
• Strong emerging markets
• Environment is now too sensitive
The above challenges has led to the below impacts:
• Market demand is now volatile
• Need to be faster on time to market
• Customer requirements are demanding
• Development of product cycle needs to be reduced
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The static order to cash spreadsheets have been replaced with a system that enables to dynamically shrink or grow availability to promise.
• Optimized transportation through business intelligence solution by efficient transport routing and management of carrier performance and payment. For example the IT solutions allows the business to identify when and where lead times are not important as in case of shipment through ocean (more shipment time) in contrast to air shipment which is costly. There is also increased responsiveness through better management of third party carriers transporting AMD products through tracking and providing visibility of the carriers performance helping manage vendor efficiently.
• Automated event management: Improved capital supplier payment process
AMD requires high end equipment to support new generations of processors. Factories need these cost savvy equipment’s as soon as possible with advantages of supplier discounts if paid promptly within stipulated time. Automated systems are designed to pay suppliers early to capture the discounts which are very significant. The automated process uses a supply chain event management application which tracks and monitors milestones or events within a business process providing real time status to all the relevant
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Reusable new enterprise capabilities are there such as tax calculation, global trade, web portal, middleware and BI apps. AMD used JIT dev methodology in implementing new horizontal services.

AMD continues the make-to-stock (push) model for CPU product. It is also using the pull and hybrid models to support new market segments such a gaming console.
• As in case of push model the whole supply chain management is based on demand forecast of finished goods, AMD forecasts and pushes the inventory to hub locations which is best positioned to address customer needs.
• It uses pull model for gaming console demands which is steady all-round the year with a larger end of life propositions.
• Hybrid model is also adopted in cases of stage inventory (components) which is push model and then final products are created based on pull model.
So IT enablement ERP solutions has helped in delivering more efficient information systems with many aspects of supply chain management which includes planning, demand forecasting, production planning order fulfilment and warehouse logistics. The ERP solution has greatly reduced complexity by improving agility, reliability and support and cost

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