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Sales Operations - Supply Chain
Process Automation
By Mike Ruggiero
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Data, data, everywhere, but none of it matches
Seagate Confidential
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Heatmap: Account Management supply analysis tool
SSD: Single Source of Demand Demand Planning tool
Opti Scenario Planning Solver based production planning tool
DFAT Distribution Forecast Analysis Tool Logistic Estimator/Predictinator WW freight cost calculation
PRIO Channel Allocation/FGI commitment tool
Revenue Planner Price/Costs/Revenue/Margin Plan for 6 qtrs
CTS (Cost-to-Serve) TVC cost analysis
Tools Development at Seagate
Seagate Confidential
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Data, data, everywhere, but none of it matches
Seagate Confidential
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HeatMap DSI Allocation Tool
Hub Inventory & Buffer Targets
Seagate Confidential
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Customer satisfaction is being impacted by poor supply
commitment reliability
It is difficult to reconcile the demand forecast for the next 13-
weeks with what is scheduled to be built, why?
It is difficult to determine if JIT inventory buffer levels for key
customers can be maintained
It is difficult to understand how transit time (lead time) affect both
demand fulfillment and buffer levels
Problem-1 Statement
Seagate Confidential
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Production Build plans are Not in a database but are published
weekly on Excel spreadsheets.
Each Production Planning Market Segment uses a different
publication format.
Transit times for customers are poorly understood at a corporate
level, planning uses generic 3-days for all.
There are multiple methods for calculating customer buffer
requirements.
Problem-1 Underlying issues
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Granularity: per Customer, per tab number (9-digit)
Correlate Future Forecast (either Customer FCST or Judged
Demand) to Build Plan (BP) data
Determine the anticipated Ending Hub Inventory on a weekly
basis
Calculate the DOI (Days of Inventory) Delta, in units, available to
the customer
Short term projection (13 weeks)
HeatMap Requirements
Seagate Confidential
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HeatMap Database
Seagate Confidential
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HeatMap Solution
Main Pivot Table
Seagate Confidential
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HeatMap User Views & Interfaces
Drilldown
Configure Pivot Data
Limit Query Data Configure Pivot Table
1
2
3
Seagate Confidential
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Production Scenario
Planning
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During times of severe allocation (demand significantly exceedssupply) Sales and Operations could not agree on what product to
build
Maximum quarterly profit margin was dependent on the type of
manufacturing constrain limiting supply
Appeasing large corporate accounts required at least a limited
amount of lower margin product be built
Business strategy required that certain product be favored over
outers regardless of margin (e.g., capacity, target market such as
consumer products or retail, etc.)
Problem-2 Statement
Seagate Confidential
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Again forecast, product margins, constraints stored in
independent databases or no database
Poor agreement on what product cost should be used (standard
cost, actual cost, others)
Poor agreement on which customers should be prioritized overothers
Complexity of variables made it hard to quantify choices/options
(scenario planning)
Problem-1 Underlying issues
Seagate Confidential
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Page 15
Seagate Confidential
Scenario Modeling Application
Supply Constraints
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Page 16
Seagate Confidential
Objective: Max ProfitStandard Margin*Allocation Qty
Manipulate Variables
Scenario Modeling Application
Constraints
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FW31 Manu Forecast Model Results
Seagate Confidential Special HandlingPage 17
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DFAT Distribution
Forecast AnalysisTool
Seagate Confidential
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Distribution forecasting aggregates many smaller customers and
involves forecast for a large number of products
Forecasting is more variable and often appears unrelated to
backlog (usually based on TAM goals)
The weekly forecast process required greater than one-person
week to complete and there was only one person assigned
The forecast was imprecise
Existing process tool had 38 documented steps, required an hour
to product a working copy
Problem-3 Statement
Seagate Confidential
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Again five separate datasets need to be correlated: forecast,
shipments, inventory, backlog, available supply
Data was in multiple reports and not indexed/categorized the
same
Input from sales was informal and different for each sales region
Forecast application was old and manual entry of data was very
time consuming
Process tool used incomplete and unreliable data sources
Problem-3 Underlying issues
Seagate Confidential
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Page 21 Seagate Confidential
Objective - Improve forecast analysis
Assemble all relevant data sets in one place
Provide ability to compare forecasts to available supply andidentify opportunities for revenue improvement
Provide ability to rapidly identify gaps between forecast andbacklog
Built-in linearity analysis, by week and month
Automate roll-forward logic for weekly forecast misses
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Page 22 Seagate Confidential
DFAT - Rapid and accurate analysis
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Page 23 Seagate Confidential
DFAT Single Build, Wham-whams
DFAT Ti A O t t I t
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Page 24 Seagate Confidential
DFAT -Time, Accuracy, Output Improvement
Accuracy Able to match regional forecast to supply/backlog on a weekly
basis
Includes Opportunity complexity not in original process
Initially possible once or twice a quarter and took 2-days tocomplete
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Applications and the
User Instrument(Mikes Soapbox)
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Time delays
Disconnects - timeouts
Poor or no warnings
Poor or no error reporting
Product Dependencies
Maintenance and support (Vendor longevity)
User Perceived Application Quality
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Time delays
Disconnects - timeouts
Poor or no warnings
Poor or no error reporting
Product Dependencies
Maintenance and support (Vendor longevity)
User Perceived Application Quality
Seagate Confidential
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Popular App Web based interface
Seagate Confidential
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Popular App Web based interface
Seagate Confidential
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User interface takes ~1 minute to startup
Poor Java compatibility
Timeouts logout on warning on message
Results:
Some functions disabled, but not others
Almost always save document function disabled
Co-worker lost his job in part due to frustration with thisapplication
Problem-3 Underlying issues
Seagate Confidential
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Worlds largest Enterprise Software Provider(Not Microsoft)
Seagate Confidential
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Brief Historical Problem Description Approx. RecoveryDate Time
1. Locked out of Rev Planning DF Extract Web Page 8/2 1.5 hr
2. Locked out of Rev Planning DF Extract Web Page 9/2 1 hr
3. Pricing Download returned 1 months Data not 2 8/30 2 hr
4. 1-Working Upload timeout, 1-Final upload timeout 8/31 1 hr
5. 2-Working Upload timeouts 7/14 1 hr
6. Auto scheduled xfer of Extract to repository failed 9/19 2 hrs
7. Std Cost upload times out after 1 hour wait, multiple timeouts 9/28 2 hrs
8. Working download financials wrong Cost values incorrect 9/28 5 hrs
9. Std Cost/FBC upload to report success, but data not actually uploaded 9/29 1 day
10. Pricing Download returned 1 months Data not 2 10/5 1 hr
11. DF Extract (SMA) data extract contains invalid ST numbers 10/16 2-days12. Auto scheduled xfer of Extract to repository failed 11/1 3 hrs
13. Auto scheduled xfer of Extract to repository failed 11/8 30 min
14. DF Extract Web page inaccessible JAVA Server error 11/15 1.5 hr
15. Working download data incorrect, IE9 problem 11/16 6 hrs
16. Email data files messages taking6 to 8 hours to arrive 11/16 3 hrs
17. Pricing Download returned 1 months Data not 2 11/17 2 hrs
18. Working uploads timing out working at Scotts Valley office 11/17 1.5 days
19. Pricing Upload Failed disconnect after 4-minutes (multiple attempts) 1/8 1 week20. Working Uploads timing out working at Scotts Valley office 1/8-1/9 12 hrs
21. Field: Product Family quoted data incompatible with the application 1/9 18 hrs
22. Working download financials wrong 1/10 4 hrs
User Perceived Application Quality
Seagate Confidential
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User Perceived Application Quality
Seagate Confidential