Supply Chain by the Numbers: Week of October 8, 2009 "CSCMP Edition, Part 2"
   
 

-October 8, 2009
   
 

This Week’s Supply Chain by the Numbers – Intel's Atom Chip, Pier 1, Outsourcing Relationships, Kraft Foods

   
 

The Supply Chain and Logistics Numbers Worth Knowing This Week: Necessity the Mother of Re-invention, Pier 1 Rocks the Boat, A Matter of Opinion, New TMS is Big Cheese at Kraft

   
 
 
 

80+%

Level by which Intel had to reduce its total supply chain costs for its new Atom chip, which will sell for $20 each - heading towards $10, versus the level of costs for traditional chips with a selling price of about $100. According to Intel’s Jim Kellso at CSCMP 2009, the company was able to reach that goal by rethinking its whole supply chain, including moving to a dramatically faster order cycle and production time model.

 
 



 

3

The number of days before a ship from Asia is scheduled to leave before which retailer Pier 1 schedules shipment from its offshore suppliers, according to the company’s Greg Rake, a change to this new “smart PO” that reduces inventory versus the previous method.

 
 
25%/45%

The percentages of shippers and 3PLs, respectively, who characterize their outsourcing relationships as “extremely successful,” according to the annual third-party logistics study for 2009 that was released at the CSCMP conference.

 
 
 
 
20%

The surprising percent change in Kraft Foods’ order-destination pairs in its transportation operation, according to the company’s Michael Cole at CSCMP. That’s 20% of more than 25,000 total OD pairs in the system. A new TMS at Kraft helps it manage these dynamics and look for opportunities for continuous moves and other improvements quickly even with this level of network dynamics.