Seagate Technology International (A) – Enhancing Supply Chain Collaboration

By Tang Hung Kei and Tom Gleave

Abstract

In the mid 1990's, companies began to embrace the Internet with increasing fervor in efforts to improve communications and achieve greater business process efficiencies. By the late 1990's, an explosion of related activity had taken place (supported by zealous investors), as established companies and upstart entrepreneurs rolled out a variety of new business models designed around the Internet. During this time, disc drive manufacturer Seagate Technologies International (Seagate) had become very focused on improving its supply chain management (SCM) practices, which it viewed as a key element for achieving competitive advantage.

To keep on the leading edge of SCM, Seagate, along with nine other electronics and high technology industry leaders, launched e2open.com in August 2000 as a means for securing greater collaboration and procurement efficiencies among industry players. However, a severe downturn in market sentiment towards Internet plays hampered the adoption of new online business models. By April 2001, skepticism had turned into significant doubts over which models would be successful or not in the years ahead. This has left two of Seagate's key Singapore-based managers involved in the e2open project (YC Goh, Executive Director - Asia Materials, and CP Teh, the Senior Director - e-business), with the task of drafting recommendations about how the new online venture could attract more interest and participation from other industry members.

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