Transcription

1 Basics of Supply Chain ASQ Customer Supplier Division 2007 Symposium When you hear Supply Chain Basics What comes to mind? 2 Your Supply Chain End to End Process Right product Suppliers Your Company Customers Right quality Products Right cost Information Funds 3 Right time 4

2 New Definition Supply Chain Is People What Determines Effectiveness? Collaboration The ability of people to work together across departmental and company boundaries 5 6 What You Can Take Away Your 2007 Challenges How do I ensure ideas get implemented? How do I bring other people with me? How do I make my supply chain process more effective? 7 Implementation of lean manufacturing with key suppliers Monitoring and ensuring suppliers meet quality and delivery requirements Ensuring quality when dealing with off- shore suppliers Finding the right suppliers 8

3 Finding the Right Suppliers Company strategy Supply chain strategy Commodity plans Sourcing teams Company Strategy Customers and markets New products Core competencies Organization structure 9 10 Supply Chain Strategy Customer service / outsourcing Strategic sourcing Transportation, distribution, and logistics Strategic Sourcing Alignment of Supply Chain Strategy with Company Strategy 11 12

4 Risk/Value Matrix Risk/Value Matrix Material Classification spend No customer impact Unique specs Industry standard spec Many producers cost to switch Significant P&L impact Key customer benefit Limited supply base COGS Does not differentiate Many producers Risk/Value Matrix Specific Actions Contingency Plans Develop competition Increase technical understanding Minimize admin cost Re-engineer engineer out Explore new methods Process improvement Sr. mgmt. involved Increase market knowledge Active negotiation and sourcing Watch market changes Risk/Value Matrix Strategic Approaches Ensure supply availability Develop alternates Simplify acquisition process Develop partnerships Joint development programs Maximize buying power

5 Commodity Plans Short term 1 to 2 years Focused on How many/which suppliers Total cost Material availability Supplier quality Sourcing Teams Commodity focused Cross functional Empowered Global How to Work Effectively with Suppliers Building Trust Build Trust Share Information Share strategies Open books Measure Results Develop Joint Programs 19 Share resources Joint problem solving 20

6 Traditional Supplier Seller-Buyer Customer Relationship Sales Purchasing Partnering Relationship 22 Supplier Customer Sales Purchasing Partnerships What is a partner? Do we need partners? How many supplier partners can we have? 23 Supply Chain Measures Total cost Customer satisfaction Inventory velocity of product/service Greenness Greenness 24

7 Optimizing Your Supply Chain Most companies provide the resources Most companies have good people Most software systems work Differentiators Group/team functionality Relationship building skills Communication skills Training/development Thank You For more information, visit: - or - Herb Shields at hcsconsnb@aol.com 27