British Review Supply Chain Development

-- Semiconductor International, 8/1/1999

JEMI UK (Joint Semiconductor Equipment and Materials Initiative) and NMI (National Microelectronics Institute), both with main offices in Edinburgh, Scotland, have held two meetings to discuss ways to improve co-operation in the semiconductor industry supply chain. The objective was to improve efficiency by achieving closer collaboration between suppliers and customers.

JEMI chairman Ian Burnett, of IDB Technologies (England), said it would be nice to arrive at a roadmap for standardizing the supply chain. Pooled purchasing could be used to reduce cost in such areas as freight and travel. For example, a U.K. collaboration has rented and sub-let a truck for taking equipment to Semicon Europa, thus minimizing much of the costly storage and packaging. The truck driver handled much of the packing and unpacking of equipment.

With the traditional approach to the supply chain, all of those involved want inputs at different times, so an overall controller or manager is needed, according to John Newton, of M&W Pearce Ltd. All vendors need to be aware of the objectives of the whole supply chain, and the chain should continue throughout the working life of the product, rather than stopping at the first silicon, he said. Client-supplier integration is vital and is achieved by good communications, Newton said. He did not see any confidentiality problems if suitable agreements are signed.

Tom Walker, of Import Export Services, said better prices could be negotiated with airlines for regular shipments, but arrival time could be important. Customs officials tend to be suspicious of a big deal, but the majority of equipment for this industry is duty free, he said.

After the two initial meetings in Scotland and Wales, the organizing institutions plan to hold more discussions on the subject for the benefit of their members.