Improving Supply Chain Efficiency Improving Supply Chain Efficiency Through Through eBusiness eBusiness Collaboration Collaboration iDA iDA User Forum 2001 User Forum 2001 Teh Chit Pin Sr. Director, eBusiness Seagate Technology International 7 November, 2001
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“Inside Seagate, it is no longer be business as usual.
Our eBusiness strategy is designed to web-enable all
of our internal and external business operations and processes in order to gain significant operational and
competitive advantages. These advantages will
enable us to move more quickly and efficiently to both proactively anticipate and respond to changing
customer needs.”
Steve Luczo, CEO
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eBusiness RoadmapeBusiness Roadmap
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eBusiness Strategy Group ChartereBusiness Strategy Group Charter
The e-Business Strategy Group focuses on
leading, evangelizing and accelerating the
adoption of an Internet centric business
strategy throughout Seagate, its customers,
suppliers, and partners
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Internet Applications & Web-based Transformation Across The Supply Chain To Attain …Internet Applications & Web-based Transformation Across The Supply Chain To Attain …
Information Technology
Finance HR Sales Mktg Admin Facilities
Design Plan Buy Make SellMove
B2B Collaborative-Commerce With OEMs & Distributors
Product sales
On-
Line
Ord
er
Man
agem
ent
Cus
t. H
ub A
uto
Repl
enish
men
t
Build
-to-
Dem
and
B2B Collaborative-Commerce OnDesign & Procurement With Suppliers
Material spend
Desig
nCo
llabo
ratio
n
3PL
VMI H
ubM
anag
emen
t
Fore
cast
Bu
y
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… An End-to-end Robust, Predictable and Flexible Supply Chain That Is Extremely Adaptable… An End-to-end Robust, Predictable and Flexible Supply Chain That Is Extremely Adaptable
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Sketch of Seagate’s Supply Chain NetworkSketch of Seagate’s Supply Chain Network
Customers
OEMs
Distributors
VAR
StrategicPartners
Local Suppliers
Wafer
RegionalSuppliers
Raw MatlProducer
LocalSuppliers
StrategicSuppliers
Slider
ComponentManufacturer
CM 1
CM 2
PCBA
Heads
Media
Sub-Assembly
Final Assembly
AMK
SZN
WXI
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Problem With Traditional MRP Approach … Problem With Traditional MRP Approach …
Customer
1000
Day 1Signal
800
Wk 4
B Ops
1000
Wk 5
200Final Assembly
Day 2MRP
B Ops100
700
Wk 3
Sub Assembly
Day 3MRP
B Ops130
Wk 1
420
Ops
Raw Component Finisher
Raw MatlProducer
Day 5MRP
B Ops150
550
Wk 2
Component Manufacturing
Day 4MRP
Commit Commit Commit Commit
Sequential &Not Responsive
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Planning & Execution – A Different Treatment !Planning & Execution – A Different Treatment !
nn PlanningPlanningn Strategicn Long Termn Projection & Anticipation n High Level Aggregation
n Market Needs/Wantsn Model / Group number
n Product Groupingn Months > Weeks n Simulated - Systems
nn ExecutionExecutionn Tacticaln Short Termn Transactional Real Casen Detail Level Analysis
n Fact-based datan Internal part number
n Product BOMn Days > Hoursn Shop-floor Visibility
n Fact, Historyn Structured, Automated
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Planning-To-ForecastPlanning-To-Forecast
Master Demand Schedule
Resource Planning & LoadingCapacity, Manpower, Support
Suppliers Materials Delivery Commit
Align Factory Capacity
AlignSupply
Base
Resource Requirement Plan
Demand Forecast Customers
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Executing-To-DemandExecuting-To-Demand
Request
3PL Hub
Manufacturer Suppliers
Fulfill Replenish
Status
Consumption Signal
Customer
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What Are The Benefits?What Are The Benefits?
nn Speed in responseSpeed in responsen Customer consumption information captured real-time on-linen Operations response within same day to the demand signal
nn Increased customer satisfactionIncreased customer satisfactionn Lesser or no stock-out at customers’ operationsn Inventory information visible to customers – established credibility
nn Cost benefitCost benefitn Optimized inventory investment – build what is neededn Reduced aging, Less obsolescence
nn Reduced cost of servicing customerReduced cost of servicing customern Minimize no. of “touches” from customer demand to fulfillmentn Get the “noise” out of the wayn Streamlined business processes
How Fastvs.
How much
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my.seagate.com for Seagate usersmy.seagate.com for Seagate users Accessible to all Seagate users –Single Sign-on
News and directory listing of apps and web sites
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my.seagate.com for Seagate usersmy.seagate.com for Seagate users
Users customize their own workspace
Developers and business owners publish content in “containers” for easy access
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The “NetReady” Big PictureThe “NetReady” Big Picture
Providers
Yahoo!others
Suppliers & Vendors
supp
ly ch
ain vi
ews
Customers
Customer viewsGlobal
Collaboration Network
Employees
marketing manufacturing
design qualityprocurementhuman resources
etc…
Internal views
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What is “NetReadiness”?What is “NetReadiness”?
n “NetReadiness” is how well we web-enable all of our internal and external business operations & processes.
“Inside Seagate, it is no longer business as usual. Our eBusinessstrategy is designed to webweb--enable all enable all of our internal and external business of our internal and external business operations and processesoperations and processes in order to gain significant operational and competitive advantages. These advantages will enable us to move more quickly and efficiently to both proactively anticipate and respond to changing customer needs.”
Steve Luczo, CEO
n Advantages such as being able to deploy new applications, products & services quickly. Applies not only to hardware systems but software and processes.
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“The Web is an enabling factor for creating new value, increasing efficiency, lowering operating
costs and increasing customer loyalty”- Keyur Patel / Mary Pat McCarthy -
digital TRANSFORMATION
The Internet –
From Disruptive Technology
To Sustaining Technology
Are You Ready ?
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