Materials that are used in SGI® products are acquired in a variety of ways. The majority of materials are procured by our contract manufacturers. These companies not only buy the vast majority of the parts that go into SGI products, but they also perform the assembly and test functions for these products.

Some materials are procured directly by SGI. This procurement activity takes place in California, the Midwest, and Europe. The vast majority of supplier selection and sourcing activity is done by SGI. This activity is handled by commodity teams. These teams comprise representatives from various functional areas such as commodity management, engineering, and marketing. The commodity managers are responsible for driving the supplier selection and sourcing activities. They also drive activity for supplier management for all commodity-managed parts.

Some of the typical commodities that are managed at SGI are:

• ASICs*
• Contract manufacturing*
• Displays*
• DRAM*
• Hard disk drives*
• Input devices*
• Microprocessors*
• PCI*
• Power supplies*
• Printed circuit boards*
• RAID*
• Removable media*
• SRAM*
• Manufacturing Procurement*

*The asterisk indicates that the commodity is currently under contract.