Supply Chain Optimization and Future Forward

Anurag Sharma

Director of Global Supply Management at Micron Technology

Learning Objectives

This presentation covers key themes around Supply Chain Optimization and illustrates challenges and opportunities for high-tech Supply while enabling flexible, responsive & customer demand driven value chain. The presentation focuses on; end to end optimization and the future of supply chain.


Key Takeaways:



  • End to end optimization

  • Future of Supply Chain

  • System foot print


"We can follow our 80:20 model here where machines are performing 80% of the work that generates 40% of the value, freeing up humans to continue to concentrate on 20% of the work that generates 80% of the value. "

Anurag Sharma

Director of Global Supply Management at Micron Technology

Transcript

Greetings to all the participants in the SCOPE Virtual Summit. My name is Anurag Sharma, and I am currently the Director of Global Supply Chain Management with Micron Technology. Over the course of the next few minutes, I will be with you talking about a very important topic for our industry, which is around Supply Chain Supply Chain optimization, and also some talks about the future of Supply Chain.


Before we talk about Supply Chain and go into more in depth details, a little bit background about Micron, which is a global leader in memory and storage today founded more than 40 years ago, back in October 1978. Today, Micron is 44,000 patents strong and still growing. As worldwide presence with over 40,000 plus team members spanned across 17 countries.


Micron is an industry leader in innovative memory and storage solution. As the world reliance on the data driven insights expands, our solutions and expertise are increasingly essential. We enable the collection, storage, and management of data, turning it into insights and intelligence with unprecedented speed and efficiency. Micron vision, as you can see on the screen, is to transforming how the world uses information to enrich life for all.


I have been very fortunate to be with the semiconductor industry starting my carrier back in the year 2000 when the world was right at the brink of the y2k. I began working with Micron Technology starting in Singapore, and then later moving to its headquarters, which is located in Boise, Idaho in United States.


Over the course of 21 years with Micron, I landed in various roles and increasing responsibilities, within and not limited to quality and reliability assurance. A lot of focus on industrial engineering, in particular, the front end fabrication planning, and also within the global Supply Chain. 41 years with Micron, and the passion still continues to work in this industry, which keeps all of us very excited with all the new innovations coming in day by day as we progress our times forward.


Key considerations if we have to look at the Supply Chain planning and optimization. It’s centered around orchestration, which is a very important key function as you can see that the interface occurs with a lot of cross functional units, cross functional stakeholders alignment, starting with manufacturing fails, business units, working through engineering, procurement.


Important thing is to continue to work towards the common goal and attainment of the cost margin and revenue objectives. In a sense, it’s a bi model that Supply Chain optimization tries. On one hand, it is all about running the business, while on the other side, also to transform the business. When we talk about running the business, it’s to be structured, predictable, hierarchical, and continue to drive continuous improvements. Transforming the business essentially encompasses to be a giant, have dynamic org, and re engineering involved.


Supply Chain, it’s a journey coming from maturity, and if you look at the timescale. But the maturity really starts occurring when you have dysfunctional silos, streamline silos, best in class processes implemented, cross functional alignment, and there is a value chain. Value chain is all amongst suppliers, Supply Chain, as well as the end customers.


Supply Chain and analytics are very important part of the journey. Descriptive to continue to know what happened, predictive what will happen, prescriptive what should we do about it once it’s happening, and cognitive what will the humans do. Transformation starts occurring as you have the people in place, you drive the processes involved, and enable the right level of technology.


If we step back and look at what happened to the semiconductor industry and how the demand shifts and market expansion started occurring, just over the last, I will say, that a year and a half from the start of the pandemic. The pandemic this disruption to the high tech in supply chains caused significant demand shifts, expansion of the existing markets, and the accelerated growth of new markets coming in while the timing and the long lead time of expanding capacity and time face geographic description disruptions.


Automotive, as you can see in this graph here just as an example, really take off in the current stage where we are, just looking back from the year and a half ago from the start of the pandemic. Similarly, mobile also have started seeing an accelerated growth. There is almost one device per home to one device per person is where the market shift has occurred. New markets have started evolving, whether it is around the artificial intelligence or the internet of the things.


The question remains, in a post pandemic world, what will happen with the Supply Chain? It is very important to be customer demand driven. They should be segmented Supply Chain to meet the customer and the product needs, need to be flexible with structured flexibility of the supply network available, and also be very responsive. Responsive is all around frequent and faster planning cycles, shorter response time, and enabling faster cycle time possible. Enabling flexible responsive and customer demand driven value chain. It starts with the foundational capabilities of systems process and talent. Then, adapting to the leading technologies and maturity process, which involves machine learning, blockchain, supply chain digital twin, autonomous planning, and value based pricing.


If I have to look on to the future and leave raging on to these technologies, on one side of the x axis, you have the business value, and on the other side on the on the y axis, you can see the analytics complexity on how it is increasing. I talked about the four stages on the descriptive, predictive, prescriptive, and the cognitive in the previous slides, but really expanding it to a little bit more further. When we are trying to look at descriptive on what happened, there are a lot of tableau power bi reporting tools that have been enabled to analyze, and to get into the predictive, statistical forecasting comes into play.


The question remains in front of all of us on what should we be doing about it, and continuing to look for that Supply Chain optimization and be prescriptive. Of course, moving forward, fast forward to the future, cognitive approaches will be evolving, auto generate actions based on data and machine learning. If we have to put it into simple terms, we can follow our 80:20 model here where machines are performing 80% of the work that generate 40% of the value, freeing up humans to continue to concentrate on 20% of the work that generate 80% of the value. So it’s very important as the analytics complexity continues to grow higher and higher. We also drive business value used to be higher and higher.


On this note, I want to thank you all for your focus and support, and giving this opportunity to be with this elite group participating in the SCOPE Virtual Summit in October 2021. I wish all of you a very enlightening time ahead as you participate in different various sessions. Thank you so much.


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