DC Velocity - November 2012

thoughtleaders

ANo, quite the reverse. Reducing the number of JIT hubs, and
consolidating them into fewer
regionalized locations, gives us
much greater flexibility, capability,
and capacity to adjust to sudden
shifts in demand. We can become
more responsive by having the fuller
capabilities to ship directly from our
factories or from more strategically
regionalized hubs that are closer to
the point of consumption as well as
through traditional JIT hubs.

QA number of big companies, such as IBM, P&G, Ford,

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Boeing, and Dell, have created “control towers” that allow their supply chain folks to oversee the flow of parts and products and make adjustments in times of crisis. Is this something Seagate is doing?

AWe are increasingly participating with our customers and our suppliers to have greater end-to-end visibility of their orders, from component supplies and finished products to final delivery.

We’re doing this through greater communication, co-planning, and collaborative execution software tools. We’re also entering into more long-term service agreements with our major customers, which enable us to plan better for the future as a partner rather than just a vendor.

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QOne takeaway from the Thai floods and the Japanese earthquake/tsuna-mi is the need for companies to have multi-tier suppliers strategically positioned to pick up the production slack in the event a location gets knocked out of commission. Is that commonplace throughout the supply chain? If not, should it be?

ASupply chain leaders are recognizing the importance of balancing multi-tier supplier relationships with fewer core and trusted suppliers that consistently produce quality products. We look for suppliers that have a global footprint but also regionalized capabilities with value-added services, which allows us to be more flexible if supply or demand quickly shifts from one location to another.

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QWe live and work in a global “vil- lage” that can be capricious and perilous. What advice can you give your fellow supply chain professionals— regardless of their vertical—on how to protect their product flow, and fulfill their customers’ needs, when disaster strikes?

AThree things: Strong, trusted, and eep relationships with suppliers and customers; alignment around common objectives that benefit all parties;

and end-to-end, aligned metrics for investors, customers, and employees. If supply chains can concentrate on these three priorities, everything else should fall into place in good times and bad. ;