Cohu moves to Oracle Cloud to boost efficiency, scale quickly
Oracle Cloud Applications help the semiconductor equipment manufacturer standardize processes and focus on business growth.
“If you look at who is leading the push in the cloud, it's Oracle.”
Business challenges
Founded in 1957, Cohu offers a broad portfolio of equipment and services for back-end semiconductor manufacturing, including test and handling equipment, thermal subsystems, test contacting, and vision inspection. The California-based company had grown through acquisitions over the years, and each of its acquired businesses retained its legacy back-office systems and processes—and, to an extent, its own identity.
As part of its quest to become One Cohu, the company decided to standardize on common cloud-based systems, processes, and shared services in order to increase efficiency, scale quickly, and ultimately move toward a unified identity.
We resolved many of our operational issues and scalability limitations moving to Oracle Cloud. It’s an enormous advantage partnering with a Tier 1 cloud provider.
Why Cohu chose Oracle
After years of integrating a range of on-premises legacy software, Cohu moved to Oracle Cloud ERP financial applications, Oracle Cloud SCM supply chain apps, and Oracle CPQ (Configure, Price, Quote) sales apps in February 2020, five years after standardizing on Oracle Cloud HCM apps under a separate project. The company used Oracle Integration to connect their on-premises, custom, and SaaS systems. One of the reasons the company chose Oracle was because, unlike competing vendors, it wouldn’t require partnerships with third-party product vendors.
“It’s an integrated environment, from product development all the way to customer feedback,” says Cohu CIO Craig Halterman. “If Workday, SAP, and Salesforce really want to continue to nip at the heels of Oracle Cloud, they're going to have to invest in developing more comprehensive and more integrated suites.”
Results
Cohu worked with Inspirage, Part of Accenture, to implement Oracle Fusion Cloud finance, supply chain, and sales applications just before COVID-19 forced some of its employees to begin working remotely. Executives and managers ran reports and saw company-wide information they couldn’t see before, including open work orders, invoices, receivables, and purchase orders.
Having one supply chain system and process meant that Cohu’s production managers in Malaysia no longer had to work with multiple processes and workflows when engineering change orders were ingested from departments across the enterprise. Cohu extended its supply chain system to suppliers, capturing and sharing quality control data about components with them much faster. This reduced overall quality concerns, with real-time data helping address issues earlier on and minimizing delays.
Moving to a single ERP and supply chain platform also allowed Cohu to integrate acquired companies faster by consolidating their data and processes on the Oracle Cloud platform.
In a subsequent implementation phase with Inspirage, Part of Accenture, Cohu also used the unified suite of applications to enhance the customer experience. By integrating Oracle Fusion Cloud Sales and Oracle Fusion Cloud Service into the existing cloud platform, Cohu established a continuous digital thread from engineering to assembly to sales to service. Oracle Configure, Price, Quote (CPQ) helped streamline the lead-to-order process, while Oracle Field Service improved service technicians’ ability to install and maintain highly customized equipment at customer sites. Simplifying order flows and accelerating post-sales service was a huge advantage for Cohu, helping the company preserve its vital customer base and generate additional revenue.
Cohu’s IT department no longer focuses on maintaining a wide range of systems, but on looking for ways to use the latest quarterly updates from Oracle to transform the business. “I want to get my people focused on business, not on spending time worrying about the next update or the next customization,” says Halterman. “The continuation and the maturity of all the products continues. Every 90 days, you’re getting an update release.”
Watch the video to find out how Cohu standardized processes on Oracle Cloud Applications in order to focus on business growth.
Partners
Cohu worked with Oracle integration partner Inspirage, Part of Accenture, on a multiphase digital transformation to implement Oracle Cloud ERP, SCM, and CX applications.
“The success of the project is because Oracle and Inspirage, Part of Accenture, brought talent and technical skills to the solution. It became a marriage, a relationship that we will sustain and continue,” says Halterman.
Cohu leveraged Inspirage’s integrated supply chain hub Enterprise Control Tower, built on Oracle Analytics Cloud. With this solution, Cohu has seen a 50% quicker time to value than other alternatives for analytical insights into its supply chain.
About the customer
Cohu is a leading supplier of semiconductor test and handling equipment. The company delivers leading-edge solutions to enable a smarter, safer, and more connected future.