SUPPLY CHAIN OPTIMIZATION AT WESTERN DIGITAL by ProQuest

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									 case study




supply chain
optiMization at
Western digital
Western Digital, the world’s second largest hard drive manufacturer, substantially increased customer
satisfaction and reduced inventory by implementing a solution from ICON-SCM (Karlsruhe, Germany).
Synchronizing supply and demand along the entire supply chain could reap additional benefits.



T        o improve the planning process
         for its international supply chain
         and gain the ability to fulfil demand
based on specific priorities, Western
Digital decided to implement ICON-
                                                                        had previously introduced two separate
                                                                        initiatives to implement a faster and more
                                                                        accurate planning process, aimed at higher
                                                                        profit margins in a market that’s becoming
                                                                        more and more complex. However, neither
SCM’s planning solution. ICON’s solution                                internal projects nor external software
replaced the largely manual process with                                tools provided the anticipated results. The
an automatically generated plan that takes                              breakthrough came by teaming up with
production capacities and demand priorities                             ICON-SCM.
into account. “This capability is an extremely
decisive success factor in a market that,                               A High-Performance
although growing by approximately 15%                                   Planning Algorithm
per annum, has seen cutthroat competition                               Implemented in April 2008, the ICON-
during the last several years,” says                                    SCP software now manages the supply
Wolfgang Nickl, Vice President, Finance and      Dr Michael Keppler,    of 250 customers across four different
Business Operations at Western Digital.          General Manager,       sales channels at Western Digital. By
                                                 ICON-SCM               using this integrated planning process,
Speed as a Decisive                                                     the company receives a consistent and
Success Factor                                                          realistic plan that is based on capacity
The hard drive manufacturer now uses                                    constraints and synchronizes all participants
an integrated planning process across                                   within the supply network. The material
several factories. Throughput time was                                  supply is based on demand priorities,
reduced by up to 2 days and the flexibility
of price and production planning was                                     Western Digital Corporation
                                                                         Western Digital, one of the storage industry’s pioneers
significantly increased. “In our business,
                                                                         and long-time leaders, provides products and services
product prices drop by almost 25% yearly;
                                                                         for people and organizations that collect, man
								
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