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New Program Offers Better Parts Availability and Cost Advantages

By Kerem Kapkin

The need for readily available, high quality and cost-effective spare parts is a key concern for customers, whether they are running the latest technologies on brand-new tools or older processes on legacy 200mm equipment.

Because Applied Materials maintains one of the industry’s most complete global inventories of spare parts for semiconductor manufacturing equipment, we are in a unique position to leverage our supply-chain investments to offer customers parts support that is specifically tailored to their operational needs.

Applied Materials is developing a new parts business model called Forecast Parts Management (FPM) that focuses on forward-looking active supply-chain management. With FPM, Applied will be able to provide a superior level of service to a given customer based on that customer’s committed part usage forecast with set delivery schedules and quantities.

FPM combines volume-based parts pricing with a customer commitment to purchase a defined percentage of forecasted parts within a specified time period. In effect, FPM will give Applied the ability to design the optimum spare parts supply chain for both the customer and for Applied Materials.

For example, depending upon a customer’s annual volume and delivery frequency requirements, inventory can be stored off-site and delivered as needed or stored at the customer site to be used on demand. The supply chain design is based upon the specific customer requirements. This tailored solution enables Applied Materials to optimize the supply chain while ensuring that our customers have exactly the inventory they need to maximize the use of their production equipment.

Applied Materials is committed to providing comprehensive services and support to our customers to enable them to achieve the highest return on their capital investments. “While there is always room for improvement, our current performance shows that where we forecast spare part demand, we can consistently achieve world class part availability for our customers at a global scale,” said David Lee, head of Spares Marketing for Applied Materials. “FPM helps us deliver a higher level of supply chain performance to our customers, helping position Applied Materials as their most valued supply chain partner.”

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