The customer specializes in designing, manufacturing, and marketing semiconductor equipment that facilitates the production and development of high-tech electronic devices worldwide. By closely collaborating with their customers, they help overcome technical and cost challenges, enabling the transformation of novel materials into high-yield, production-scale device performance.
The client was experiencing significant challenges with excess and obsolete (E&O) inventory across their global depot locations. This surplus led to increased storage, maintenance, and disposal costs while tying up valuable working capital, creating cash flow constraints. Rapid shifts in demand and technology often rendered inventory unsellable, resulting in financial losses and costly write-offs. Additionally, limited visibility and inefficient stock redistribution disrupted supply chain operations, causing delays and inefficiencies. These issues strained resources, impacted brand reputation, and affected customer satisfaction due to outdated or discounted products flooding the market.
To address these challenges, the client partnered with Orbit & Skyline as semiconductor supply chain experts. Leveraging our expertise in inventory optimization and demand planning, we provided tailored solutions to minimize holding costs, enhance inventory visibility, and streamline stock redistribution, ensuring a more efficient and cost-effective supply chain.
This project presented a distinct set of challenges that required meticulous planning, seamless collaboration, and adaptability from the team. The complexities stemmed from both external and internal constraints, underscoring the importance of proactive risk management and clear communication. Each obstacle reinforced the need for robust systems to ensure smooth execution.
A major challenge was addressing stockout situations, which created pressure to fulfil urgent special stock requests. The unavailability of critical inventory threatened project timelines and risked diminishing customer trust. Balancing inventory priorities while maintaining adherence to deadlines became a crucial focus for the team.
Managing components with extended lead times, some exceeding six months, added unpredictability to the project schedule. This constraint required careful planning to prevent delays. Additionally, the lack of visibility into future tool installations and evaluations further complicated resource alignment, making it difficult to anticipate customer demands and optimize supply chain efficiency.
As part of this project, we delivered a robust suite of solutions focused on addressing excess and obsolete (E&O) inventory challenges. Our approach emphasized data-driven decision-making, strategic forecasting, and collaborative execution to optimize inventory management.
Conducted in-depth assessments to identify surplus stock and inefficiencies.
Developed predictive models to align inventory levels with future demand.
Worked closely with sales, field service, and supply chain teams to drive alignment.
Designed efficient stock reallocation strategies to minimize obsolescence.
Implemented solutions for repurposing, refurbishing, or responsibly disposing of outdated inventory.
To ensure seamless execution, we structured a hybrid team combining both onsite and offsite expertise:
This collaborative model integrated data-driven insights with operational expertise, resulting in a sustainable and efficient inventory management system.
To achieve the project’s objectives, we leveraged advanced tools, including:
For actionable insights and trend identification
For end-to-end inventory tracking and control
For interactive dashboards and reporting
For process improvement and waste reduction
By implementing these solutions, we optimized inventory levels, reduced financial risks, and improved supply chain efficiency, ensuring long-term operational resilience for our client.
Through our proven expertise in inventory optimization and demand planning, we delivered tailored solutions that significantly improved the client’s supply chain efficiency. Our data-driven approach enabled the client to:
10% cost savings.
Increased reliability and service quality.
Optimized stock levels leading to quicker fulfilment.
Ensured critical inventory was always accessible.
Reduced supply chain inefficiencies and workplace stress.
Streamlined operations for improved efficiency.
Less excess inventory creating a more organized and hazard-free workspace.
By implementing strategic inventory management practices, the client enhanced operational agility, freed up working capital, and strengthened their market position with a more efficient and responsive supply chain.
If you are looking for expertise in semiconductor fab services for your company, reach out to Orbit & Skyline at hello@orbitskyline.com.