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r.The fulfillment process takes the order from an OMS and manages all activities necessary to provide the product in the form and functionality that the customer requires. This can include: “Markfor” labeling, lessthanfullcase picking, packaging, etc.25Replenishment PlanningCFIMProgramPhasesandSupportingITToolsDemandPlanningSystemSupplyPlanningSystemDemand, ForecastDemandDemand Determination Order Management FulfillmentOrder ManagementSystemWarehouseManagementSystemAvailability DeterminationReplenishment OrderOrder to ShipATP Picked OrderOrder to be PickedCustomer Forecasts, Inventory Information and Demand DataIn order to provide customers with the services levels expected, the following systems and processes must be in placeBased on forecasts, inventory levels, demand, the system will determine the need for a replenishment order and issue a transaction to the Order Management System (OMS).The OMS receives information from the system and produces a Replenishment Order. The process is concluded with transfer of control to the Fulfillment system.The Fulfillment system ensures the product will meet customer requirements and execute lessthanfullcase picking, special labeling and packaging, and if required, packing and shipping.Order shipped to customer, ASNPickingSystem26CFIMImpactOutsidetheFourWallsThe impact of a CFIM program will extend beyond the four walls of an enterpriseCustomerSupplierReplenishmentPlanInventory(WIP,FG,intransit)InvoicesTranslationXML/EDITranslationASN,ShipmentsForecast,ActualconsumptionInventoryReceiptsRosettaIt will require external facing collaboration mechanisms to be put in place to exchange information with a collaboration partner27TableofContents SemiconductorIndustryCharacteristicsandHighTechIndustryDynamics QuestionssurroundingCFIM–What,How,WhenandwithWhom ImpactonOperatingModel MaximizingBenefitsfromaCFIMprogram CaseStudiesSummary KeyLearnings Remendations28HowshouldSemiconductorManufacturersParticipateinCFIMprograms Selectcustomerswhereeffectivepartnershipispossible SearchforCollaborativepartnershipsthatareeconomicallyfeasible. Onlyparticipateinunfeasibleprogramswhencoerced. Seekgreatervisibilityintocustomerinventory,forecastsandnewproductplans Obtainrealtimepull/demanddatatofacilitatetimelyresponsetodemandchanges LeverageRosettaNetstandards Replenishtotheactualpullfromthecustomer Offerrealtimevisibilityintoallocationandstatusoffinishedgoods,capacityandWIPtocustomerinexchangeforlowerinventorycoverage Negotiateordercancellationpenaltiesforcustomproducts Negotiaterewardsandpenaltiestodrivebettercustomerperformance:higherinventoryturnsandincreasedforecastaccuracy Newproductsupplypreferences Setlimitsonpriceprotection EliminateCFIMprogramforsustainedpoorperformance Negotiatemoreattractivepaymentterms29KeyElementsofaCFIMAgreement Develop CFIM Agreement and Statement.Documentamissionstatementthatenpassesthesharedunderstandingandobjectivesofcollaboration,confidentiality,andempowermentofresources(actionsandmitments). Determine CFIM Goals and Objectives.Establishgoalsandobjectives,whichenpassthedefinitionofopportunity,themeansofmeasurement(monmetrics)tobeusedinthepartnership,anunderstandingoftheimpactoneachtradingpartnersbusiness,adefinedbusinessprocess,andexceptioncriteriaforboththesalesandorderforecast. Discuss Competencies, Resources, and Systems.Determineeachparty’spetencies,resources,andsystemsandtheircapabilitytocontributetotheprocess. Define Collaboration Points and Responsible Business Functions.Mapthecollaborationpointstotradingpartner