Sidebar - Backlog

Customer onboarding

Overview

Get acquainted with how backlog ordering works at TI: 

  1. Understand how backlog ordering at TI works
  2. Customer onboarding process
  3. Backlog overview

To get started with the customer onboarding process, see the information below 

 

Backlog ordering at TI

  1. TI’s standard incoterm is free carrier (FCA)
    1. Product obligation transfers to the buyer once product is received by customer's carrier at one of TI’s product distribution centers
    2. The customer is responsible for all freight costs after their carrier takes possession of the goods
    3. The customer is the importer of record
  2. TI’s standard payment terms are net 30 days
    1. The TI financial invoice is due 30 calendar days from the invoice date
  3. TI’s standard product label will be utilized and cannot be customized
  4. Orders, advanced ship notice, financial document and remittance advice are required to be enabled
  5. TI’s default shipping conditions for all customers
    1. Shipment type: TI defaults to customer request dates (CRD) with TI’s estimated ship dates (ESD). This means that the CRD is the date TI will plan to ship on
    2. Ship-ahead window: TI defaults three days as the ship-ahead window, so TI can release orders to ship three days before the CRD
    3. CRD as dock date: TI will recognize the CRD as the date the customer requires the shipment to arrive at their facility
      1. Option: CRD as ship date: TI will recognize the CRD as the date the customer requires the shipment to leave TI. To utilize this option, please contact Texas Instruments Customer Support Center
  6. Place new orders to TI backlog exclusively through your direct customer account
  7. Receive support through our Customer Operations team at TI.com/support
  8. See more details in the Backlog overview section

 

Customer onboarding process

This section will guide you through the information and documentation needed to setup your company at TI. Once this information is collected, proceed to submit the customer onboarding form. 

  1. Setup your company in TI's system
    1. Gather all of the information requested on the customer questionnaire. This will include information such as: role of requestor, type of company market, company addresses and export regulation questions, to help us ensure that we setup your company correctly
  2. Documentation required
    1. Based on your primary shipping location, there are certain required documents and information that will be required
    2. Here are the templates for the required documents:
      1. Trade compliance template
        1. Use company letterhead for the signed end-user certificate (EUC)
        2. A signed EUC is necessary to comply with export administration regulations, see Government 744 documentation
      2. Routing guide template
        1. Required fields
          1. Standard carrier name (from acceptable carriers)
          2. Carrier freight account number
          3. Standard service level (from acceptable service levels)
        2. Optional fields
          1. Carrier contact information
          2. Expedite shipment carrier info
          3. Local agent or broker contact info
      3. Materials list
        1. Requirements: TI's manufacturer part number (MPN) is mandatory. List each TI MPN that your company plans to order
          1. For contract manufacturers (CMs), end customer full name is required
            1. Each end customer name will be matched 1:1 to a TI MPN. For multiple end customers purchasing the same TI MPN, ensure each end customer full name is included for that MPN
            2. For CMs, TI's customer direct price is based on the end customer provided
        2. Optional: Estimated annual usage is used for establishing TI's customer direct price (CDP)
        3. Optional: Customer part number is used to ensure the customer has listed the correct TI MPN
      4. Payment questionnaire template
        1. Inputs to the questionnaire align TI’s accounts receivable processes to your accounts payable processes
        2. If TI needs further clarification after submission of the form, a TI credit manager will contact the accounts payable contact
    3. For government and customer documents, use your existing documents or documents downloaded from government sites (attach to customer onboarding form signed and dated)
      1. See below table for a preview of the required documents:
            
  3. Connectivity options: Application programming interface (API) or email
    1. If API is your preferred option, have an administrator's user email address ready
    2. The administrator's user email address will have access to the API keys within the customer’s myTI company account
  4. Ready to submit?  Click the customer onboarding form

 

Backlog overview

The information below provides helpful details on customers’ backlog management processes.  

  1. Pricing
    1. The customer direct prices (CDPs) that TI offers for your direct purchases are confidential (CDPs are in U.S. dollars, exclusive of duties and taxes, for example, value added tax (VAT))
    2. Before shipment, prices are subject to change; TI’s final price on the date of shipment, as stated on TI’s invoice, applies
    3. TI will communicate pricing changes after order entry to customers through regular backlog report emails
    4. If TI extends your CDPs to its authorized distributors and/or your authorized manufacturing partners, you must separately negotiate resale prices and terms with those third parties
    5. CDPs are conditioned on adherence to forecast volumes and committed share percentage
    6. CDPs contingent on start of production (SOP) will begin on the actual SOP date
  2. Receivables and credit
    1. Net 30 days is TI's standard payment term and starts at the invoice issued date
    2. After completing the customer onboarding form, TI’s accounts receivable team will align with your accounts payable team based on the receivables and credit questionnaire
    3. TI’s regional credit teams will establish a credit limit for the customer account
    4. Unpaid invoices not resolved within net 30 days will be at risk for a credit block on open orders
    5. Unpaid invoices are often caused by pricing discrepancies between the customer's expected price on the purchase order (PO) and TI's price on the invoice
    6. Upon payment, TI requires a remittance advice in order to properly match a payment amount to the appropriate invoices being paid (to accomplish this, you must use the Remittance advice API or email remittance advice)
  3. Customer support
    1. See TI.com/support to ask backlog and onboarding questions
    2. For more information on TI MPNs:
      1. Ti.com/material-attributes-search/ provides material specific ordering information
      2. https://bomcross.ti.com/en/ provides technical specification and inventory information
  4. How to expedite an order
    1. Submit a case through TI.com/support
    2. Include the following:
      1. TI sales order
      2. PO number
      3. PO line item
      4. Customer project/application
      5. Line down quantity
      6. Line down date
      7. Weekly run rate
    3. Attach a runout that contains demand week by week with TI estimated ship dates (ESD’s) to calculate cumulative delta to highlight supply gaps.
      1. Ensure that the runout sheet aligns with your open backlog report and the customer request date (CRD) quantity matches
      2. For example:  
        1/2/2023 1/9/2023 1/16/2023 1/23/2023 1/30/2023 2/6/2023 2/13/2023 2/20/2023
      On hand (OH)              3,500    2,000  (1,000)    (3,500)  (6,500)      17,500     5,500     2,500
      ESD Qty*                 -             -         -           -    30,000                   -                   -                   -  
      Demand Qty              1,500    3,000    2,500     3,000     6,000      12,000    3,000     5,000
      Projected OH               2,000   (1,000)   (3,500)    (6,500)  17,500       5,500     2,500    (2,500)
      TI MPN      TPSTIMPNQ1              
      TI Sales order       1022123456              
      Customer PO# with line items if needed  PO123456 (10-140)              
      Customer project/part number           Optional              

      *ESD = estimated shipment date

  5. Period for order changes and cancellations
    1. TI will publish the change order window for the Product, Wafer Product and/or Die Product by the TI part number
    2. Inside the change order window, cancellation is generally not permitted
    3. In any event, Buyer should work with TI’s customer support center to support requests to cancel or change Buyer’s order
    4. Requests to change Buyer’s order may result in such order being rescheduled at lead times
    5. TI reserves the right to charge for cancellation and rescheduling of orders

  6. TI’s backlog report and commonly used acronyms
    1. TI emails backlog reports (at least three times a week) summarizing open orders, pricing discrepancies, and material attributes to keep you informed. TI will email a backlog report (in Excel) to the contacts that are provided on the customer onboarding form
    2. The backlog report includes separate tabs on:
      1. Backlog and shipments: This tab includes all open orders with ESDs and order change deadlines, as well as current tracking information for any orders in transit, including the delivery note number, commercial invoice number and tracking reference number
      2. Pricing discrepancies: This tab highlights any open orders that are not aligned to the TI provided CDP
        1. TI's CDP will be reflected on the TI financial invoice
        2. Updates to the TI price will be informed through API push notifications or through the price discrepancy tab within the backlog report. If you do not agree with the TI price, please contact TI through TI.com/support to resolve.
        3. TI's final price is based on the shipment date
        4. In order to clear the pricing discrepancy to release your order for shipment, the price on your PO must align to the CDP
        5. Send a change order to TI to communicate the new price on your PO
      3. Material attributes: This tab includes all TI MPNs orderable under the buying entity (your sold-to code) with the standard packing quantity (SPQ), minimum order quantity (MOQ), lead time, and your CDP. To add an orderable material, submit a new quote for the device needed:
        1. API quote
        2. RPA quote
      4. For CMs, this list shows each valid TI MPN by end customer name
    3. The backlog report will be used to reference:
      1. Lead time: amount of time that TI quotes to build a specific part on average
      2. ESD: the date TI plans to ship, based on the actual product availability at the time of purchase order acceptance
      3. CRD: the need date the customer expects the product to ship by
      4. Rescheduled estimated ship date (RESD): the business planner will assign an RESD when the factory is planning late to the initially assigned ESD
      5. Actual goods issue date (PGI): the date the delivery was shipped to customer
      6. Product shipment information:  tracking number, carrier name and waybill number
      7. Ship partial: TI defaults all orders to ship partially to fulfill CRD demand (releasing available material by SPQ to meet CRDs)
      8. Shipment type: TI defaults CRDs with TI’s ESDs (this means that the CRD is the date TI will plan to ship on)
      9. Ship-ahead window: TI defaults three days as the ship-ahead window, so TI can release orders to ship three days before the CRD
      10. Pricing discrepancy: Latest order pricing that will be used for invoice along with highlighting any pricing discrepancies that need action from you
  7. Material attributes section:
    1. Upon successful submission of the Materials list through the customer onboarding form, TI will establish the customer’s “material attributes,” sent in TI’s backlog report
    2. Material attributes include:
      1. Customer name
      2. End customer name, if applicable
      3. SPQ: standard pack quantity
      4. MOQ: minimum order quantity
      5. MIV: minimum item value
      6. Price valid from date
      7. CDP
  8. Shipment, tracking and invoicing:
    1. Upon shipment you will receive shipment, tracking and invoicing documents
    2. For shipment and tracking, TI consolidates all deliveries into a single email with PDF attachments of the waybill, delivery note and commercial invoice, emailed to the contacts provided on the customer onboarding form.  Additionally, hard copy documents are provided with the actual product
      1. See the advanced shipment notification section for examples
    3. TI emails a single financial invoice for each delivery to the accounts payable contact which was provided in the payment questionnaire
      1. See the Financial invoice section for an example
  9. Customer product return instructions