Working Group. How should we Reshape the Overall Supply Chain Strategy in HMLV Environment? Choon Seng LEE Supply Chain Manager Makino

Transcription

1 Working Group How should we Reshape the Overall Supply Chain Strategy in HMLV Environment? Choon Seng LEE Supply Chain Manager Makino

2 How should we Reshape the Overall Supply Chain Strategy in HMLV Environment? Sourcing for the Right Partner Lead Time Optimization Reduce the Overall Operational Costs

3 Sourcing for the Right Partner - How do I Define the Optimal Partner for My HMLV Business? How Often do you Use Data to Measure the Performance of your Vendors? Are you Relying too Much on Technology? Dealing with Difficult Vendor for High Requirement Procurement Activities

4 Considering the Softer Aspect of the Partnership Do you understand the needs of your vendor other the business in $$ value. Are you able to actively provide non tangible benefits to the partnership? How is the vendor organized? Is there continuity or plan B if there are issues causing critical disruptions? Many vendors in HMLV environment are more than often SMEs or micro enterprises. Are you also into sharing information and communicating with the vendor effectively to reduce operational cost and waste on his side? Have you deliberated carefully on the suitability ( 匹 配 / 定 位 ) of the vendor other than the competence, cost, quality etc? Do you get to the vendor s management attention/support in improving the business operations? Is you and/or the vendor forcing yourself into this business? In any first meeting with the boss of a new vendor, I always use the Chinese quote, 不 要 勉 强, 勉 强 没 幸 福

5 For High Requirement Procurement Activities and Dealing with Difficult Vendor Collect and present the data (cost analysis, performance data etc depending on what kind of issues) to your vendors Substitution sourcing for products with high technical content or criticality, the responsibility can never rest solely on the Sourcing or Procurement function, Involve cross functional team of Quality, Engineering or even R&D Handle the risk of substitution sourcing

6 Lead Time Optimization Should I Rely too Much on Safety Stocks? How could I proactively reducing the waste and ineffectiveness in Supply Chain and Operational Management before proposing safety stock as a solution? Lead Time Optimization How could I proactively prevent potential inventory exposure in times of downturn? Am I focusing my limited SCM force on managing what really matters? How to do cost-benefit deliberation in substitution sourcing for low value parts How should I ensure that both the suppliers and my internal customers understand the risks of potential inventory exposure Embargoes and liability?

7 Lead Time Optimization Communication Know Your Products Organize Your Data - Think Before You Leap Use Your Data - Organize Your Material Planning in A Rational Way Change of Mindset Political

8 Communication Political Fix regular meetings and set the rules of engagement on issues impacting lead time, forecasting, delivery and inventory etc Have the sales make commitment on their forecast and deliveries and keep track of it

9 Know Your Products Political Go through the BOM (with complimentary purchase info records) to understand the products technical, cost buildup, supply and purchase characteristics, along with some basic manufacturing data, production cycle time, flow, capacity Get a pretty good overall understanding on which is critical for the next step

10 Organize Your Data - Think Before You Leap Political Use Pareto Analysis to group your inventory parts into A, B, C and even possibly sub groups

11 Use Your Data - Organize Your Material Planning in A Rational Way Political Don t sweat on the small stuff, Always keep an on what really matters Focus all your SCM resource (time, people, inventory) on these A parts Consolidate your purchasing volume in a rational way in which the potential inventory exposure or holding risk is within acceptable limits Take management wise most operationally cost effective approach rather than the old order based approach towards the B and C parts

12 Change of Mindset litical Instead of the functional activities, timely and accurate collection, processing/organizing, management, dissemination and feedback of functional data and information are the key to success in HMLV environment

13 Reduce the Overall Operational Costs from A Procurement/Sourcing Perspective A Parts Establish a dedicated sourcing project with Quality and Engineering/ R&D. Management need to commit resource and support. If no possibly alternative, seek a logistic/supply solution to reduce lead time. E.g vendor supply from a location closer to or in China B Parts Most of the parts here is constantly under scrutiny of Sourcing/Procurement and normally should only require the involvement of Quality to qualify parts simply based on FAA (First Article Approval) process. C Parts Source and localize as an entire commodity group. Typically most savings is either logistical or operationally. Go for brands and non cost KPIs is the driving factor for vendor selection.

14 Reduce the Overall Operational Costs from A Procurement/Sourcing Perspective Don t waste time sourcing/localizing when there is no visible savings Go for logistical consolidation and purchase in bulk

15 Brainstorming Session