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To make sure that Seagate s supply chain strategy stays aligned with the company s business strategy, Becks s team chairs a monthly meeting of senior-level supply chain sponsors and project team members. Meeting participants review the status of all supply chain projects that are underway and recalibrate those efforts as needed to align them with changes in business direction or new customer requests. Seagate has already invested about $5 million in supply chain improvements a reflection of the company s commitment to supply chain excellence. The company typically tracks about 30 supply chain projects at any given time. One major new initiative is enterprise planning, which will improve data accuracy and integration among functions and processes, eliminating data silos and separate functional plans. The goal is that when a customer calls and wants to double its order on one disc model and cut another order in half, the order-management group will be able to commit to the order immediately but also calculate the impact on revenue, margin, and capacity utilization throughout the company. Seagate often puts in place one building block of its supply chain architecture and then monitors how well it works out. If a better solution comes along that delivers more flexibility, responsiveness, or value, the company doesn t hesitate to rethink its first approach and deploy the new solution.
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SEAGATE TECHNOLOGY PROFILE: Real-Time Response to Demand
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Like its business, Seagate s supply chain is flexible, agile, and evolving constantly. What doesn t change, though, is the company s view of its supply chain as a key source of competitive advantage one well worth the ongoing investment.
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A P P E N D I X
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Source and Methodology for Benchmarking Data
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he benchmarking data presented in this book are sourced from The Performance Measurement Group, LLC (PMG), a subsidiary of PRTM. PMG maintains a repository of company-confidential supply-chain information dating back to 1995. Companies that access this database are required to complete extensive surveys of their supply chain performance, practices, and information-technology (IT) usage. They can then compare their performance against benchmarks derived from the performance of a selected population of companies in the database. This provides them with a basis in fact for assessment, highlights differences in practices, and helps them to understand which practices will help them improve performance. PMG conducts analysis on an ongoing basis to determine trends in dominant and emerging practices, supply chain strategy, and performance levels for key supply chain metrics. The metrics used in this book were chosen because they show the level of performance gains that can be obtained from better practices and systems and what supply chain performance is considered significantly better than average, as well as what is considered best overall. To accomplish these objectives, PMG explored the link between supply chain practices and financial performance, developed an aggregate measure of supply chain
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performance, and evaluated various segments of the population according to this measure. PMG calculated customer-facing and internal benchmarks of supply chain performance across populations of companies in similar industries; these are referenced throughout this book.
THE DATABASE POPULATION
A small subset of PMG s overall database was selected for analysis based on surveys submitted during 2001 and 2002, except where historical data are used to show a trend or where single-calendar-year data are used to show even more current performance levels. In most cases, broad cuts of the database for example, groups of industries are used. The benchmarks provided throughout the book are based on a robust set of companies that have similar demographics and business characteristics (e.g., industry segment, company size, etc.), allowing for a highly reliable data source. PMG focused on the high-level findings (e.g., SCOR level 1 metrics or practice elements) and aggregated analysis rather than on more detailed analysis, which is valuable but better suited for supply chain topics more narrow than those addressed in this book.
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