Adaptec

COMPANY

Adaptec, a global leader in data and digital content storage solutions headquartered in Milipitas, California USA.

CHALLENGE

Incompatible supply chain processes due to rapid growth through acquisitions. Immediate need was a rapid supply chain assessment to identify core problem areas and specific remedial actions that would create significant process improvements (not just incremental gains).

WHY ABEAM?

Reputation for excellence in supply chain consulting, including a highly successful prior engagement with U.S.-based Dell Computer.

SOLUTION

ABeam analyzed Adaptec's supply chain, resulting in a transformation roadmap that estimated return on investment for:

• Improving Adaptec's liquidity position (inventory and cash-to-cash conversion cycle)
• Establishing build-to-order capabilities to keep pace with changing market demands
• Transforming supply chain demand with best practices for supply matching and inventory velocity
• Focusing the company on execution through metrics, performance monitoring and accountability standards

REAL BENEFITS

ABeam identified seven supply chain improvements that could begin producing results within one quarter, leading to a minimum ROI over three years of $23.5 million. Adaptec executive management, with first-hand exposure to ABeam's expertise, commissioned a joint partnership with ABeam to implement those recommendations, using a formal gain sharing program that aligns ABeam-driven project success with Adaptec's success. Early results include:

• Reduced inventory stocking levels
• Increased inventory turnover
• Improved forecasting accuracy and controls
• Seamless integration of ABeam consultants with Adaptec staff to create a homogeneous transformation team focused on Adaptec's success