improving supply chain efficiency through ebusiness...

Improving Supply Chain Efficiency Improving Supply Chain Efficiency ThroughThrough eBusinesseBusiness CollaborationCollaboration

iDAiDA User Forum 2001User Forum 2001

Teh Chit Pin Sr. Director, eBusiness

Seagate Technology International

7 November, 2001

12/5/01 iDA User Forum 2001 Copyright of Seagate Technology - Permission For Reuse Required

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Seagate’s eBusiness StrategySeagate’s eBusiness Strategy

“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

Visibilityn Volatile, variablen Flexible, Scenario-able

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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Supply Chain e-Transformation InitiativesSupply Chain e-Transformation Initiatives

Customer FG’s Hub Inventory Visibility

Consumption Pull Information Real-Time On-Line

Factory Responds To Replenishment Signals

Build The Right Product, Ship To The Right Customer Location

Customer Demand Fulfillment –Auto-Replenishment

1


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Supply Chain e-Transformation Initiatives …Cont’dSupply Chain e-Transformation Initiatives …Cont’d

Seagate-Suppliers-3PL VMI Messaging2

Info Exchange Seagate-Suppliers-3PL• Requirements & Suppliers Commit• Purchase Order & Delivery Status• Hub Inventory & Consumption Data

n Piloting P2P RosettaNet standards messaging on real-time basis

n Evaluating e2open hosted global collaboration network service


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Factory Suppliers

JIT Hub

Seagate-Suppliers-3PL VMI Messaging - CurrentSeagate-Suppliers-3PL VMI Messaging - Current

Hosted Exchange

Service Provider


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InvoiceInvoice

Suppliers

33rdrd Party LogisticsParty Logistics

Seagate-Suppliers-3PL – RosettaNet P2P PilotSeagate-Suppliers-3PL – RosettaNet P2P Pilot

ForecastForecast

Forecast AcceptanceForecast Acceptance

InventoryInventoryInventoryInventory

ShipmentShipmentShipmentShipment

Fulfill Fulfill Demand Demand

Fulfill Fulfill DemandDemand

Hub Hub ReplenishmentReplenishmentJIT FulfillmentJIT Fulfillment

ReceiptReceipt

Demand Demand PullPull

Demand Demand PullPull


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- Domain knowledge- Patent-pending

technology- Software solutions

suite- Standards based

Deep Industry IP Software Solutions

Suite

Standards basedNetwork

- Configurable shared-services network across all trading partners - E2open Network Architecture as central hub

Network

Founders&

StrategicPartners

- Access- Learning

Founders

Global Collaboration Network ServicesGlobal Collaboration Network Services


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Product Collaboration Solutions In Use


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Supply Chain e-Transformation Initiatives …Cont’dSupply Chain e-Transformation Initiatives …Cont’d

Place Orders, Change Orders

Check Order & Ship Status

Inventory Visibility

View and Request Pricing

Interface w/Accounts Receivables

Worldwide One Stop Online Ordering System forSeagate’s OEM and Distributors tomanage their orders with Seagate

WebWeb--Based Online OrderingBased Online Ordering3


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my.seagate.com for Partnersmy.seagate.com for Partners

q Generic login screen accessible from the internet

q Partners must complete online registration form to request access to portal


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Online Ordering Web LookOnline Ordering Web Look

q Like internal version, users can customize views, roles can be define

q Look-and-feel was adapted to integrate with corporate internet standards

q Integrates news & announcement tools, customer applications, and content web site


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Intranet Initiative – my.seagate.com PortalIntranet Initiative – my.seagate.com Portal

Information Technology

Finance HR Sales Mktg Admin Facilities

Design Plan Buy Make SellMove

On-

Line

Ord

er

Man

agem

ent

Desig

nCo

llabo

ratio

n

Cus

t. H

ub A

uto

Repl

enish

men

t

Build

-to-

Dem

and

3PL

VMI H

ubM

anag

emen

t

Fore

cast

Bu

y

Employees

CustomersSuppliers


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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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