Schweitzer Engineering Laboratories' Diane Maceri presents at FOM2023 Boston.

1. 2023
REGAINING CONTROL IN THE NEW SUPPLY CHAIN
THE VIEWS AND OPINIONS EXPRESSED IN THIS
DOCUMENT ARE THOSE OF THE SPEAKERS AND DO NOT
NECESSARILY REFLECT THE VIEWS OR POSITIONS OF ARROW
ELECTRONICS AND ITS ENTITIES.

2. Connected for
the Long Haul
Supply Chain Director
Schweitzer Engineering Laboratories
DIANE
MACERI
BOSTON, MA
20
23

3. © 2023 SEL
Diane Maceri, Supply Chain Director
Connected for the Long Haul

4. Make electric power
safer, more reliable,
and more economical
OUR SUPPLIER PARTNERSHIPS
HELP US WITH OUR MISSION TO…

5. We practice unquestionable ethics
 Make clear promises to customers and exceed their expectations
 Assume responsibility; be accountable
 Depersonalize problems to solve them
 Treat each other with dignity and respect at all times
 Understand that it is just as important to be
a good customer as it is to be a good supplier
INTEGRITY
Our Principles of Operation lead the way

6. We appreciate that work is a significant part of our lives
 Appreciate, respect, and enjoy diversity of thought and opinion
 Achieve personal satisfaction from your creations and contributions
 Help others recognize, appreciate, and enjoy individual and team success
 Enjoy pursuing our purpose and vision
 Balance the interests of our customers,
employees, stockholders, suppliers, and community
DIGNITY OF WORK
Our Principles of Operation lead the way

7.  Manufacturing within SEL is the process of obtaining quality materials
and effectively processing them to produce a superior end product
 We view our suppliers as part of our team and process,
and we educate them in our purpose, values, and processes
 Processes must be measured routinely to ensure
they are under control and are continuously improving
 SEL manufacturing is world-class manufacturing
MANUFACTURING
Our Principles of Operation lead the way

8. Partners in profit – for the long haul

9. Supplier development means making the supplier ‘like family.’
It is not worth the effort and cost unless there is a clear intent
to stay with the supplier for the long haul.”
“
—World Class Manufacturing, Chapter 9, Page 156

10. “The long haul is the
multiyear life of a part, and
perhaps more than that. It
may be the life of the
companies or plants, and it
may take in several
generations of a family of
parts or class of
commodities.”
—World Class Manufacturing, Chapter 9, Page 156

11.  “The rationale for
supplier development is
simple. The quality
goes up and the price
goes down.
Since too many
suppliers means too
little attention to each of
them, supplier
development starts
with supplier
reduction.”
—World Class Manufacturing,
Chapter 9, Page 156

12. Building Partnerships
Requires Accountability

13. Identifying problematic partnerships

14. You beat down the price so much
that your supplier is unprofitable,
unable to invest in improvements,
and perhaps unable to stay in business

15. Your withholding of information on
capacity plans, product plans, and
demand forecasts causes your supplier to
design, buy, build, and ship late – or early

16. Your failure to specify requirements clearly
makes it impossible for your supplier
to assure quality at the source

17. Your failure to share your knowledge
of best business practices contributes
to their inability to keep up and
stay attractive as your supplier

18. Your energy is expended in the search
for new suppliers, which results in a
continual succession of startups and
no movement up the learning curve

19. Your lack of interest and reluctance to
keep in close touch leads them
to treat you as an adversary

20. What is the right number of
supplier partners to have?

21. Factors to consider
 Supplier size
 Ability to grow
 Capacity constraints
 Supplier location
(and associated risks)
 Ease of transport
 Financial health
 Business support
capability (for you and
their other partners)
 Technical capability
(supplier strengths)
 Private vs.
public company
 Supplier flexibility

22. Is there a checklist of what it takes
to be a good supplier partner?

23. What makes a supplier a partner?
 Shared values
 Relationship that
is built on trust
 Continuous
improvement culture
 Willingness and
ability to grow
 Technical expertise
 Relationship that is
mutually beneficial
(partners in profit)
 Customer-focused
organization
 Willingness to engage
in WCM journey

24. Does the perfect supplier exist?

25. Frequent personal contact
We sent some people back to work on their
assembly line, to understand their problems.
We had some of their people come out and work
on ours, putting their product in our products.
There’s been terrific progress made, and we have
a terrific rapport...
The relationship is healthy when a shop floor
assembler or supervisor will just call someone in
the supplier company to tell [them] about a
problem.”
“

26. Removing roadblocks for
continuous improvement
SEL Partner
CEO
General
manager
Buyers, engineers,
and other staff
Supervisors
Assemblers, receiving team,
and warehouse team
CEO
General
manager
Salespeople, order
entry, and engineers
Supervisors
Machine operators, subassemblers,
shipping team, and warehouse team

27.  Supply constraints at Penn
Engineering & Manufacturing
 Material and labor shortages
 Extended lead times
 Line-down outages at SEL
Hardware shortages
impacting production

28. Collaboration among competitors
in support of SEL
Distributor A
Hardware Supplier
Distributor B
Sheet metal
supplier partner
Supplier Y
Electronic device
factories
SEL
Sheet metal
vertical integration
SEL
Sheet metal
supplier partner
Supplier X

29. Scan the QR code to learn more
about World Class Manufacturing.

30. Questions?

31. Connect with me
on LinkedIn
Diane Maceri
Supply Chain Director
Schweitzer Engineering Laboratories