Intel Corporation Receives Top Supply Chain Award at CSCMP Conference

Lombard, Illinois USA (October 7, 2009)—Intel Corporation (NASDQ: INTC) received first place in the 2009 Supply Chain Innovation Award competition at the Council of Supply Chain Management Professionals’ (CSCMP) annual global conference held in Chicago, September 20-23.

Naperville, Illinois-based Tellabs with software partner ICON-SCM received second-place honors.

Chosen from five finalists, Intel’s multi-year initiative to significantly improve customer satisfaction via increased response and delivery performance, “Just Say Yes—Innovating Responsiveness at Intel,” resulted in more than a 40 percent improvement in customer feedback scores, supported by a 300 percent-plus improvement in change order responsiveness, in addition to achieving best-in-class levels of delivery performance. All of this was accomplished by reducing pipeline inventory by 33 percent during the same time period.

Also contributing to the improved responsiveness levels were hub-based fulfillment, cross-organizational coordination, forecast improvements, postponement, and reduced cycle times.

“‘Just Say Yes’ is a big step in Intel’s journey to become a supply chain leader, and these results also validate the exceptional customer-oriented efforts of our employees throughout the past few years,” said Frank Jones, general manager of customer fulfillment, planning, and logistics for Intel. “These improvements have also helped Intel optimize its superior technology and manufacturing to realize supply chain excellence.”

“We believe supply chain excellence begins with customer benefits, and the ‘Just Say Yes’ initiative is based upon that philosophy,” said Nikhil Chhabra, Intel’s supply chain strategy program manager. The company did not cite dollar-based results and impacts.

Tellabs (NASDAQ: TLAB) with software provider ICON-SCM received second-place honors with their joint initiative entitled “A Framework for Success: Improving the Efficiency of Outsourced Manufacturing Operations.”

Results included Tellabs reducing lead times on some components from 24 to eight weeks, reduced excess and obsolete inventory, and a six percent reduction in freight costs. Tellabs estimates the inventory savings will pay for the technology investment in less than six months.