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
