The dynamics of the computer industry compel SGI to enter into business relationships with those suppliers that provide pricing for products and services that is fair and reasonable. As a manufacturer of leading-edge computer graphics hardware, suppliers must be relied upon to provide high-quality goods and services, responsive customer service and, when called upon, short lead times.
SGI is environmentally sensitive, and we encourage our suppliers to have similar commitments. SGI exercises the highest standards of integrity in the conduct of its business. We expect our suppliers to conduct their business in a similar manner. SGI encourages and supports suppliers that utilize current electronic tools (such as e-commerce, EDI, and the Internet).
We rely on a variety of suppliers to provide key elements in the following areas:
SGI Indirect Purchasing
Corporate Purchasing specializes in the procurement of products and services that are utilized by the corporation itself, as opposed to the procurement of materials used in the manufacturing process. SGI uses state-of-the-art electronic commerce software to process purchase requisitions and send purchase orders to suppliers. Corporate Purchasing Buyers (who are located both in California and in the Midwest) receive purchase requisitions from employee requestors who may be located anywhere in the United States, including any of SGI's numerous field offices.
Corporate Purchasing's primary responsibility is to prepare Requests for Proposal, Requests for Information, and Requests for Quotation (RFPs, RFIs, and RFQs) when the complexity or dollar value warrants. Corporate Purchasing also is directly involved in supplier selection, supplier management, supplier problem resolution, make vs. buy analysis, and the processing of routine requisitions.
The following is a representative sampling of the products and services procured by Corporate Purchasing:
SGI Direct Purchasing
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:
SGI Outsourcing Program
SGI conducts its business efficiently by utilizing the core competencies of firms that provide such services as: