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Case Studies > Seagate builds supply chain driven by customer demand

Seagate builds supply chain driven by customer demand

Technology Category
  • Analytics & Modeling - Predictive Analytics
  • Application Infrastructure & Middleware - Data Exchange & Integration
  • Platform as a Service (PaaS) - Data Management Platforms
Applicable Industries
  • Consumer Goods
  • Electronics
Applicable Functions
  • Logistics & Transportation
  • Warehouse & Inventory Management
Use Cases
  • Demand Planning & Forecasting
  • Inventory Management
  • Supply Chain Visibility
Services
  • Software Design & Engineering Services
  • System Integration
The Challenge
Seagate needed to create a more responsive supply chain to support business practices such as vendor-managed inventory, JIT hub replenishment, and build-to-demand manufacturing. The company faced challenges due to short product life cycles and highly volatile demand, which required fast time-to-market and fast time-to-volume strategies. The combination of these factors drove the need to integrate business processes across divisions, geographies, and trading partners. Seagate aimed to move from a build-to-forecast model to a true build-to-demand model, requiring better synchronization with trading partners and a robust system providing visibility to the supply chain process for all suppliers and customers.
About The Customer
Seagate is a worldwide leader in the design, manufacture, and marketing of hard disk drives, providing products for a wide range of enterprise, PC, notebook, and consumer electronics applications. As the largest global supplier of hard disk drives, Seagate competes in a market where next-generation products arrive quickly and are cheaper and more powerful. In such a hyper-competitive business, where short product shelf life is the rule, manufacturing and supply chain processes must be accurate, lean, and flexible. Seagate's top priority is customer responsiveness, aiming to satisfy customer needs quickly and flexibly through superb logistics and supply chain coordination.
The Solution
Seagate deployed E2open’s multi-enterprise business process management, including E2open’s demand-supply network solutions for managing intercompany workflows and E2open Multi-Enterprise Integration for enabling trading partner on-boarding and any-to-any integration. E2open’s solutions propagate actual demand data through the Seagate supply chain, providing a recommended replenishment order quantity that helps Seagate and its trading partners respond to upside demand opportunities. The real-time supply chain visibility enables Seagate’s 3PL provider to manage VMI hubs and send current inventory reports to Seagate and its suppliers. E2open’s solution spans 10 countries, includes more than 180 suppliers, and handles over 66 million parts per day, delivering many-to-many Web- and RosettaNet-based messaging for Seagate and its trading partners.
Operational Impact
  • Seagate has moved from 30 logistics carriers to just two, cutting costs and improving efficiencies.
  • Request-to-commitment turnaround time shrunk from three days to 24 hours, opening up new upside opportunities.
  • End-to-end order and inventory visibility—and true vendor-managed inventory capabilities—throughout the supply chain.
Quantitative Benefit
  • Seagate has moved from 30 logistics carriers to just two.
  • Request-to-commitment turnaround time shrunk from three days to 24 hours.
  • E2open’s solution spans 10 countries, includes more than 180 suppliers, and handles over 66 million parts per day.

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