Introduction

 Seagate Technology is one of the world’s largest manufacturers of computer

disk drives and related data storage devices1
 The company operates in a highly competitive and dynamic market, where
customer demand and product differentiation are key factors1
 The company’s supply chain strategy is to use real-time demand forecasting
and end-to-end visibility to reduce inventory and lead times, and to improve
customer service and satisfaction12

Problems and Solutions

 In this section, we will discuss the main problems that Seagate faced in its
supply chain, and how it overcame them using the five disciplines
 Problem 1: High inventory and low service levels
o Solution: Implement real-time demand forecasting and end-to-end
visibility
 Seagate gave access to its operating system to both suppliers
and customers, allowing them to see the actual demand and
supply situation1
 Seagate eliminated the lag time between supply chain lead time
and customer acknowledgement, and reduced the order cycle
time from 20 days to 2 days1
 Seagate reduced its inventory by 50% and increased its service
levels by 10%1
 Problem 2: Complex and fragmented supply chain processes
o Solution: Design an integrated supply chain process architecture
 Seagate identified and mapped out the key processes for end-
to-end supply chain management, such as demand planning,
supply planning, order fulfillment, and logistics2
 Seagate standardized and streamlined the processes across its
global network, and implemented best practices and tools to
support them2
 Seagate improved its process efficiency and effectiveness, and
reduced its operating costs and cycle times2
 Problem 3: Ineffective and inefficient supply chain organization
o Solution: Create a high-performing supply chain organization
 Seagate restructured its supply chain organization to align with
its business strategy and process architecture2
 Seagate created a centralized supply chain function, with
regional and functional teams to support the global operations2
 Seagate empowered its supply chain managers and staff, and
provided them with training and development opportunities2
  Seagate enhanced its supply chain capabilities and
performance, and increased its employee engagement and
retention2
 Problem 4: Poor collaboration and communication with supply chain
partners
o Solution: Build the right collaborative model
 Seagate established strategic partnerships with its key suppliers
and customers, based on mutual trust and benefit2
 Seagate shared information and resources with its partners, and
involved them in planning and decision making2
 Seagate developed joint initiatives and projects with its
partners, and measured and rewarded their performance2
 Seagate improved its supply chain responsiveness and
flexibility, and increased its customer loyalty and satisfaction2
 Problem 5: Lack of supply chain performance measurement and
management
o Solution: Use metrics to drive performance
 Seagate defined and implemented a set of supply chain
metrics, aligned with its business goals and customer
expectations2
 Seagate collected and analyzed data from its supply chain
processes, partners, and customers, and used it to identify and
resolve issues and opportunities2
 Seagate communicated and reported its supply chain
performance to its stakeholders, and used it to drive continuous
improvement and innovation2
 Seagate enhanced its supply chain visibility and accountability,
and increased its competitive advantage and profitability2

Conclusion
 Seagate Technology is a leading example of how a robust supply chain
strategy can help a company achieve business success in a challenging
environment12
 The company’s supply chain strategy is based on the five disciplines for top
performance, which enable it to align, design, organize, collaborate, and
measure its supply chain effectively and efficiently2
 The company’s supply chain performance has improved significantly,
resulting in lower inventory and costs, higher service and quality, and
greater customer and partner satisfaction12
 The company’s supply chain strategy is not static, but dynamic and
adaptable, as it continues to face new challenges and opportunities in the
market12