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An Industry Leader and Innovator in Storage Technology COMPANY PROFILE Storage Technology Leader Portable storage, External & Internal (HDD, SSD) Storage, Network-attached Storage Devices Global supply chain presence Revenue: $13B (FY2016) Employees: 76,000 Improve Detectability of Global Events Geographic Risk Identification WD In 2011, Thailand Floods and Japan Tsunami affected WD’s supply chain. In the aftermath of these events, the Board of Directors made resiliency a key priority for the company. Rubik Babakanian SVP of Global Sourcing, CPO Sub-Tier Risk Identification

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Page 1: WD An Industry Leader and Innovator in Storage Technology · An Industry Leader and Innovator in Storage Technology COMPANY PROFILE Storage Technology Leader Portable storage, External

An Industry Leader and Innovator in Storage Technology

COMPANY PROFILE

Storage Technology Leader

Portable storage, External & Internal (HDD, SSD) Storage, Network-attached Storage Devices

Global supply chain presence

Revenue: $13B (FY2016)

Employees: 76,000

Improve Detectability of Global Events

Geographic Risk Identification

WD

In 2011, Thailand Floods and Japan Tsunami affected WD’s supply chain.

In the aftermath of these events, the Board of Directors made resiliency a key priority for the

company.

Rubik BabakanianSVP of Global Sourcing, CPO

Sub-Tier Risk Identification

Page 2: WD An Industry Leader and Innovator in Storage Technology · An Industry Leader and Innovator in Storage Technology COMPANY PROFILE Storage Technology Leader Portable storage, External

Understanding Requirements, Choosing a Solution

Key requirements identified:

• End to End supply chain mapping (multiple tiers deep)

• 24x7 Global Event Monitoring

• Sub-Tier Risk Aggregation

• Risk Quantification

• Proactive mitigation tracking

• Supplier Business Continuity

ITMinimal IT Required

Best in class, proven

Services included

Plug and Play

Deep intelligence and robust analytics

Low Total Cost of Ownership

(TCO)

“We decided to further invest in technology to better understand intricacies of our SC (recovery times, weaknesses) etc. to identify and mitigate risk proactively.”

WD

A continuous, ongoing capability, embedded in our operating model

Page 3: WD An Industry Leader and Innovator in Storage Technology · An Industry Leader and Innovator in Storage Technology COMPANY PROFILE Storage Technology Leader Portable storage, External

WD Selected Resilinc in June 2012

© 2015 Resilinc. All rights reserved.3

“During our evaluation of alternative supply chain risk solutions post flood, Resilinc stood out from the crowd as the choice for WDC.

Their industry-leading solution provides the scalable and continuous visibility we need to proactively manage our global supply chain risks and potential disruptions.”

Publicly announced on March 15, 2013

Page 4: WD An Industry Leader and Innovator in Storage Technology · An Industry Leader and Innovator in Storage Technology COMPANY PROFILE Storage Technology Leader Portable storage, External

WD’s Suppliers benefited from Resilinc too!Suppliers did not need to invest in IT integration. Resilinc provided group and 1/1 training in multiple languages/time zones.With one effort, suppliers were able to satisfy more than just WD’s requirements over time.Resilinc helped suppliers understand and feel comfortable about sharing their data with WD.

Mapping the supply chain genome, every site, every part

With only one dedicated headcount, WD was able to get an extensive mapping plus 24x7 monitoring program off the ground.

Working with tier one suppliers first, Resilinc on boarded each of WD’s Suppliers, mapping sites and parts.

Within six months, a global picture of the supplier footprint emerged.In order to protect customer confidentiality, screenshots are not actual customer data

WD

Page 5: WD An Industry Leader and Innovator in Storage Technology · An Industry Leader and Innovator in Storage Technology COMPANY PROFILE Storage Technology Leader Portable storage, External

© 2015 Resilinc. All rights reserved.5

““

For the suppliers we had mapped, we drew a circle on the map and out popped the results in minutes.

For the unmapped suppliers it took us 2 weeks to ascertain we were not impacted.

September 2012, 7.2 Japan Earthquake provided the first proof point!

The advantage of the increased location visibility was immediate! WD

Page 6: WD An Industry Leader and Innovator in Storage Technology · An Industry Leader and Innovator in Storage Technology COMPANY PROFILE Storage Technology Leader Portable storage, External

Deep Supply Chain Intelligence with Mapping (2012-2016)

DEPLOYMENT HIGHLIGHTS

Full Go-Live: 2012

Tier 1 sites mapped: 1800+

Sub-contractor sites identified: 400+

Sub-tier sites identified: 600+

Parts mapped: >95%

Sub-tier connections made: 750+

Supply chain mapped for 99% of Tier 1 suppliers Locations, activity, raw material flow, backup capacity, recovery times

90% suppliers sharing sub-tier visibility their suppliers, sub-contractors, geographic locations, commodities purchased

Uncovered hidden dependencies, tier 1s who were tier 2, 3 or 4 partners

WD

In order to protect customer confidentiality, screenshots are not actual customer data

Page 7: WD An Industry Leader and Innovator in Storage Technology · An Industry Leader and Innovator in Storage Technology COMPANY PROFILE Storage Technology Leader Portable storage, External

© 2015 Resilinc. All rights reserved.7

WD has mapped disruption scenarios for single sourced raw materials

Recovery risk measures how fast and well a site can bounce back from a disruption.

Recovery Time Alternate Site

Dual Site Alt. Site Readiness

Product Where-used Revenue Impact

Site Location

Raw Materials Origin & Path

Risk Profile

Visibility enables us to predict problems most likely coming our way, so we can act now!

WD

Page 8: WD An Industry Leader and Innovator in Storage Technology · An Industry Leader and Innovator in Storage Technology COMPANY PROFILE Storage Technology Leader Portable storage, External

Right Size Inventory Levels

Collaborate with supplier to get tooling/equipment for alternate site*

Pre-qualify critical parts at alternate site*

Buy a capacity option for preferential allocation*

* Evaluate Revenue Impact of site/part to determine if business case can be made for investment in proactive mitigation. Not appropriate for every risk type (example, supplier financial risk)

© 2015 Resilinc. All rights reserved.8

Commodity Managers identify proactive mitigation strategies for critical ingredients

WD

Page 9: WD An Industry Leader and Innovator in Storage Technology · An Industry Leader and Innovator in Storage Technology COMPANY PROFILE Storage Technology Leader Portable storage, External

Not just aware of sub-tier dependencies, but quantifying and managing them!

9

In order to protect customer confidentiality, screenshots are not actual customer data

ISO standards-based supplier business continuity capability with key Tier-n suppliers

Supplier collaboration on business continuity improvement

WD

WD has significantly freed

up commodity managers to

focus on minimizing

disruption to the business.

In order to protect customer confidentiality, screenshots are not actual customer data

Page 10: WD An Industry Leader and Innovator in Storage Technology · An Industry Leader and Innovator in Storage Technology COMPANY PROFILE Storage Technology Leader Portable storage, External

Early Detection is key Constant Vigilance is the answer

24/7 monitoring of WD’s end to end supply chain

Advanced what-if scenario builder for proactive playbook development

Virtual, centralized war-room created for event collaboration

Mobile enabled command and control infrastructure

WD now has a finger on the pulse of all global events that could

disrupt the supply chain!

WD

WD relies heavily on Resilinc’s Event

Monitoring to plan and mitigate risk. It also helps

in anticipating risk, and preparing proactively to

prepare response.

Page 11: WD An Industry Leader and Innovator in Storage Technology · An Industry Leader and Innovator in Storage Technology COMPANY PROFILE Storage Technology Leader Portable storage, External

No Impact

Network oriented supplier response workflow in placeWD

Midnight

Typhoon Haima:

S TW, HK, CH

4 Suppliers Communicating

1:00am

37 Sites (T1-n) in region notified

4:00am

6 Suppliers Communicating

8:00am

All Suppliers Communicating

36 Hours later

WD in communication with suppliers throughout the event, confirming impact through Resilinc

95% of WD’s suppliers consistently respond to

Resilinc to confirm Impacted or Not

Impacted!

Page 12: WD An Industry Leader and Innovator in Storage Technology · An Industry Leader and Innovator in Storage Technology COMPANY PROFILE Storage Technology Leader Portable storage, External

Advice to Executives

© 2015 Resilinc. All rights reserved.12

“Can you be risk free all the time? NO, risk free doesn’t exist, but you can be much more prepared for the next event.

There’s a lot of focus on top 80% spend suppliers, but often, it’s the 20% where you may find weakness. Understanding risk in the low 20% of spend suppliers, is very important.

Use big data to mitigate before events occur. This is a much more responsible way to manage your supply chain.”

WD