20 September 2019

New ERP system implemented for finance organization in the USA and the Far East

San Jose, California, 20 September 2019 — Geoprise, maker of the GM-X™ enterprise resources planning (ERP) application suite, announced today that Credo, a provider of high performance mixed-signal integrated circuits used in high bandwidth applications, has successfully implemented the GM-X ERP for Blockchain application to support its global product costing and inventory accounting functions in the United States and the Far East.

Credo’s GM-X implementation project kicked off at the end of June 2019 and targets full completion by the end of 2019 after electronic data interchange (EDI) capabilities between Credo and its key suppliers and contract manufacturers are rolled out. Credo management selected GM-X following an in-depth proof of concept investigation which took place earlier this year.

“Geoprise clearly demonstrated the capabilities of the product costing portion of GM-X, and we were happy to see that all of our product costing requirements were met,” said Dan Fleming, Credo’s Chief Financial Officer. “We also found GM-X to be a much more flexible and customizable solution than any of the alternatives we evaluated.”

A key challenge that integrated circuit makers confront is the fact that integrated circuits, or dies, are usually sliced by the thousands from individual silicon wafers, yet many finished products contain just one or two dies. In consequence, when calculating costs at the slicing and sorting stage, the wafer quantity per finished product must be very precise to avoid the introduction of significant rounding errors.

“Most of the world’s leading ERP applications lack the necessary precision for bill of material quantities, making them unsuitable or impractical to implement for semiconductor cost accounting purposes” said Nelson Nones, Geoprise Founder and CEO. “But GM-X supports the necessary precision, and also standard scrap and yield loss calculations, which are vital additional semiconductor industry requirements for understanding actual cost performance,” he said.

The fabless manufacturing model presents another challenge for ERP systems which were primarily designed for vertically-integrated enterprises. Fabless semiconductor firms such as Credo subcontract all their production activity to foundries and outsourced semiconductor assembly and test (OSAT) vendors, who keep their customers’ stocks of raw and semi-finished materials under consignment arrangements.

“Conventional ERP systems were designed primarily for manufacturers who undertake most of their production in-house, but this design assumption forces fabless semiconductor firms to implement complex shop floor control processes in order to capture actual cost variances and maintain traceability on a first-in-first-out (FIFO) basis,” said Nones. “GM-X, by contrast, provides a simple product conversion transaction that fulfils these requirements without imposing the administrative burden of maintaining production orders that, in reality, exist only at subcontractor sites.” 

To provide immediate visibility of its consignment stock, and to minimize human data entry costs when capturing inventory transactions, Credo will be activating standard GM-X Web services integration capabilities in order to leverage the RosettaNet EDI services offered by its foundries and OSAT vendors. RosettaNet is a consortium of major electronics, telecommunications and logistics companies dedicated to creating and implementing industry-wide, open e-business process standards. “Our goal is to minimize administrative staffing requirements and costs,” said Fleming, adding that “in addition to these benefits, GM-X EDI integration presents a significant opportunity to reduce record-to-report cycle times and avoid human data entry errors.”

About Credo

Credo is a leading provider of high performance, mixed-signal semiconductor solutions for the data center, enterprise networking and high performance computing markets. Credo’s advanced Serializer-Deserializer (SerDes) technology delivers the bandwidth scalability and end-to-end signal integrity for next generation platforms requiring single-lane 25G, 50G, and 100G connectivity for 100G, 200G, 400G, and 800G port enabled networks. For more information, please visit: www.credosemi.com.

About Geoprise

Geoprise Technologies Corporation was formed in 1999 by a group of software executives with over a century of previous cumulative experience building enterprise resources planning (ERP) and manufacturing operations management systems, and implementing them worldwide. The privately-held company’s mission, then and now, is to create exceptional value for its customers by harnessing the power and economy of information technology to enable lean, world-class industrial operations on a global scale. Today, Geoprise focuses exclusively on delivering its state-of-the-art GM-X ERP for Blockchain solution to businesses operating in North America, Europe, Asia and the Pacific Rim. Geoprise values integrity by maintaining strict independence, intense commitment to business ethics and profound respect for intellectual property rights. For further information, visit the company’s website at www.geoprise.com.