Welcome To Today s Webinar: Supply Chain Best Practices

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1 Welcome To Today s Webinar: Supply Chain Best Practices The presentation will begin in a few moments Participants will receive an within 48 hours with a link to the slide deck and recording. 1 Armanino LLP amllp.com Armanino LLP amllp.com

2 About the Presenter(s) Jeff Russell, Director of Industry Leads industry excellence team for High Tech and Life Sciences. J.D., International, Intellectual Property, and Contracts Law The University of Texas at Austin B.B.A., Supply Chain Management and Manufacturing Engineering The University of Texas at Austin 10+ years AX / 30+ projects Former Supply Chain Manager for a $300m year fabless semiconductor company. 4 Armanino LLP amllp.com

3 About the Presenter(s) John Van Metre, Manager, Dynamics 12 years of Microsoft Dynamics solution sales and consulting, focused on supply chain intensive manufacturing & distribution industries M.B.A. Santa Clara University B.S. Business Management - SJSU John has worked with 100 s of clients to assess their business goals and systems requirements, and assisting clients with defining a comprehensive technology roadmap 5 Armanino LLP amllp.com

4 Managing an Outsourced Supply Chain During today s webinar, we will cover: Outsourced supply chain challenges Addressing the Black Box Enabling compliance & traceability Moving to a proactive vs reactive planning model Identifying and eliminating supply chain obstructions 6 Armanino LLP amllp.com

5 Suppliers Customers Traditional Manufacturing Supply Chain Raw Materials WIP Finished Goods 7 Armanino LLP amllp.com

6 Suppliers Customers Outsourced Supply Chain Raw Materials WIP Finished Goods 8 Armanino LLP amllp.com

7 Drivers of Supply Chain Integration Visibility into your supply chain Reducing costs for both parties Traceability & compliance Improving communication 9 Armanino LLP amllp.com

8 Suppliers Customers Outsourced Supply Chain Raw Raw Materials Materials Wafer Fab WIP WIP Contract Manufacturer Finished Goods Finished Goods Distributor 10 Armanino LLP amllp.com

9 Fabless Manufacturing Long Term Planning Wafer Fab Subcontractor Distributor Customer 8-12 weeks 1-4 weeks Demand (Backlog) Ship notification Schedule Commitment Purchase Order Forecast 11 Armanino LLP amllp.com

10 Fabless Manufacturing Logistics Tracking Wafer Fab Subcontractor Distributor Customer In-transit In-transit Ship Receipt Ship Receipt Ship Brand owner is ultimately responsible for the traceability of goods Visibility into where inventory is at Tracking of lead times for planning accuracy 12 Armanino LLP amllp.com

11 Fabless Manufacturing Wafer Fab Subcontractor Distributor Customer Raw Materials WIP Finished Goods Material Issue (Lot Start) Service PO Service PO Service PO Production Progress (Lot Move) Finished Goods (Inv. Move) Shorter term planning Flexibility to adjust midstream 13 Armanino LLP amllp.com

12 Yielded Planning & Costing Sort Assy Test 1 Test 2 Operation Yield by Operation 100% 90% 80% 85% Cumulative Yield 100% 90% 72% 61% Standard Cost Calculation Variances Posted = $ $$$ Costs Distributed to FG Yield is Expected and Planned Estimated In 10,000 10,000 9,000 7,200 Estimated Out 10,000 9,000 7,200 6,100 Pay Points IN OUT IN IN Estimated Quantity used by MRP Pay Points Used for Matching PO Proactive planning expected vs actual yields Synchronized inventory and financials 14 Armanino LLP amllp.com

13 Key to Success Relationship with Supply Chain Partners Defining Good Data Policies Right-size your approach with partners Fax/ Portals B2B batch or real-time / EDI / XML Be proactive anticipate growth, eliminate bottlenecks Maximizing benefits through MRP 15 Armanino LLP amllp.com

14 Best Practices on Integration WIP Snapshot vs Transactional WIP Synchronization of Inventory & Financials Visibility into Errors & Yield Loss Full Lot Lineage and Traceability Planning Accuracy - MRP 16 Armanino LLP amllp.com

15 In Conclusion During this webinar, we ve covered: Supply chain systems are critical to address compliance and traceability needs Integrations take partner alignment o Improve collaboration and communication o Significantly improve accuracy and timeliness o Enable scale of operations 17 Armanino LLP amllp.com

16 Q&A: Submit your questions through The chat box. 18 Armanino LLP amllp.com

17 Armanino LLP Certified Public Accountants & Consultants Jeff Russell phone: John Van Metre phone: Armanino LLP amllp.com Armanino LLP amllp.com

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