Client Problem Statement

A global semiconductor manufacturer faced the challenge of redefining its company strategy and portfolio while centralizing business operations to enhance quality and efficiency. They needed to reengineer workflows to integrate SG&A processes and eliminate reliance on siloed manual task execution and "tribal knowledge." Modernizing their tech stack for both business and manufacturing applications was crucial to provide a scalable foundation for growth and to increase productivity while lowering operating costs as a percentage of revenue.

Digitech and Their Solution

Digitech Services orchestrated a comprehensive Enterprise Transformation strategy for the semiconductor manufacturer. This included developing and executing a detailed blueprint and business case to guide the transformation efforts. Digitech standardized core business processes and established end-to-end workflows for critical functions such as Forecast-to-Stock, Order-to-Cash, Procure-to-Pay, Record-to-Report, Sales & Operations Planning (S&OP), and Supply Chain management, integrating with third-party logistics providers (3PLs), external warehouse management, and OSATs. They structured and cleansed all master data, including customer, parts, and company codes, instituting robust governance practices to ensure data integrity.

Digitech implemented SAP S/4 HANA modules (OM, S&OP, FICO, IM, EWM, SCM, Ariba), Workday HCM, ModelN, and OneStream, replacing Oracle EBS and multiple home-grown solutions. The transformation delivered significant benefits, including fueling a 64% revenue growth and establishing an operational bedrock to support approximately 40% compound annual growth rate (CAGR). Operating expenses (Opex) were reduced by 5%, and IT capacity was increased by 30% while removing 15% of existing IT Opex. Standardization of approximately 80% of business processes streamlined operations, enabled real-time analytics for order tracking, material movement, and inventory costs, and achieved a 40% reduction in operating costs for select functions by establishing a Global Capability Centre in Northern Ireland. This comprehensive approach positioned the semiconductor manufacturer for sustained growth and operational excellence in a competitive market landscape.