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LeanCor Logistics Webinar: Supplier Performance - The Keys to Collaboration

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Supplier collaboration and the resulting improvements are critical requirements for implementing lean across the supply chain. In this 1-hour webinar, learn how to start developing your suppliers to drive results in cost, lead time, and material availability.

We will explore:

Why managing supplier performance is critical to a lean logistics strategy
Recommended tools to monitor, communicate, and advocate supplier performance
Management systems: dashboards and the Plan-Do-Check-Act (PDCA) cycle
Results: learn how one customer used a disciplined supplier development process to impact freight costs and margins.

*This webinar is part of a special “Go to the Gemba” series where we interview different industry supply chain professionals about how they use lean principles and tools to solve their challenges.

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LeanCor Logistics Webinar: Supplier Performance - The Keys to Collaboration

  1. 1. The Keys to Collaboration
  2. 2. Copyright LeanCor Supply Chain Group Ashley Yentz Director - Account Management LeanCor Supply Chain Group ayentz@leancor.com Career Focus Areas: Entire career committed to lean logistics – customer account management, change management, KPI creation, lean leadership, network design, standard work and operating procedures Skilled in coaching organizations through their lean logistics implementation: strategy deployment, culture change, process standardization Prior Roles: •Kaizen Leader, Strategic Planning - Toyota Motor Sales U.S.A. •Continuous Improvement Leader - Toyota’s Parts Operation Supply Chain •Transportation Analyst - Hilti, Inc.
  3. 3. Copyright LeanCor Supply Chain Group Michelle Cribbs Manager – Lean Supply Chain Operations LeanCor Supply Chain Group mcribbs@leancor.com Career Focus Areas: Experience in supply chain, transportation and purchasing management. Works alongside purchasing professionals at LeanCor Logistics customer facilities to increase and improve supplier performance, manage and reduce inventory, and decrease transportation cost. Her knowledge and understanding of MRP systems is instrumental in streamlining customer processes with LeanCor’s solutions. Prior Roles: •Logistics and Materials Coordinator - Siemens Energy & Automations •Account Executive - Total Quality Logistics
  4. 4. Copyright LeanCor Supply Chain Group • Lean, supply chain, six sigma, and leadership courses that develop people capability and problem solving skills while building a culture of operational excellence.  Project-based, end-to- end supply chain solutions that improve your processes, reduce inventory and Total Cost, and optimize your network.  Custom, outsourced transportation management and warehousing solutions that optimize material flow, and exceed your business goals. Trusted supply chain partner that specializes in lean principles to deliver operational improvement. Three divisions:
  5. 5. Copyright LeanCor Supply Chain Group Custom, outsourced transportation management and warehousing solutions that optimize material flow and exceed your business goals Transportation Management Dedicated Warehousing and Distribution Web-Based TMS
  6. 6. Copyright LeanCor Supply Chain Group •Revenue growth is more difficult to achieve, costs are increasing, and margins are shrinking •Changing customer requirements require an agile and dynamic supply chain that’s hard to manage •Shortages in materials is driving excessive expedites and intercompany logistics. •Large inventories have become the norm to “buffer” for an unstable supply base. •Price based negotiations has moved you towards “combative” relationships with your supply chain partners •Changes due to complexities in market, channel, supply networks, and distributed facilities has added difficulty to supply chain planning and decision making. Which of these challenges resonates in your business?
  7. 7. Copyright LeanCor Supply Chain Group
  8. 8. Copyright LeanCor Supply Chain Group What kind of relationships have you built with your suppliers? •Shared Strategic Objectives •Managed by relationship •Discretionary efforts & investments in customer success •Inclusive and Open •Shared business objectives •Supplier maximizing value •Limited customer directed innovation •Maximize profits through waste elimination •Focus on operational costs (Supply Chain/Quality) •Maximize profits through piece price •Low relationship value •Price based negotiation
  9. 9. Copyright LeanCor Supply Chain Group Collaboration leads to: • Increased visibility to material movement • Advanced warning of issues • Increased on time delivery • Reduced Lead Times • Reduced Inventory • Better Quality • Shared savings from Supplier cost reduction • Supplier involvement in product/service development • Win/Win scenarios
  10. 10. Copyright LeanCor Supply Chain Group  Shortage Recovery and Unplanned Order Process  Time to react is critical to reducing and avoiding cost.  Systems like LeanCor’s Orloe Toolkit can proactively notify you and your stakeholders when events within the supply chain happen.  Such situations can include: • An order quantity has been revised • Route instructions have been released • A discrepancy between your order quantity and the supplier's ship quantity has occurred • The supplier has failed to enter a ship quantity or the quantity recorded was zero A Transportation Management System (TMS) should notify all stakeholders of an incomplete shipment and available recovery options before delivery. Do you currently use a TMS or ASN System?
  11. 11. Copyright LeanCor Supply Chain Group In a system, a process that occurs will tend to increase the total entropy of the universe. Second law of thermodynamics System: A group of interacting, interrelated, or interdependent elements forming a complex whole. Entropy: The steady deterioration of a system or society.
  12. 12. Copyright LeanCor Supply Chain Group How often do you share your suppliers’ performance? Lead Time On Time and In Full Quality: Defects Cooperation/Partnership Reviewed by: Supplier & LeanCor Date: 6/12/15 Good Caution Take ActionLeanCor Supplier Scorecard 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Target Green Target Yellow Red Zone OTIF % 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN 0 5 10 15 20 25 May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Lead Time Vendor Stated Lead Time
  13. 13. Copyright LeanCor Supply Chain Group Supplier View – Shipment Discrepancy All Users View – Live Historical Performance Summary
  14. 14. Copyright LeanCor Supply Chain Group • Identify top offenders • Identify gaps • Set targets to improve • Assign clear action and support for improvement • Conduct collaborative problem solving • Set regular cadence to review Do you have a disciplined Management System to improve?
  15. 15. Copyright LeanCor Supply Chain Group How often do you problem solve with your suppliers? Do the Work & Identify the Problem Plan & perform the work. Identify gap between plan vs. actual condition. Define the Problem Document & validate current state. Develop a clearly defined problem statement. Determine Root Cause Identify all possible causes to the problem. Isolate critical few root causes to the problem. Identify Solutions Develop solutions that address the root causes to the problem. Ensure the solutions support the entire value-stream. Implement & Sustain the Solution Communicate, train, and Implement the solution. Measure and monitor the impact of the solution. LearnOptimizeExecuteOperateReview
  16. 16. Copyright LeanCor Supply Chain Group
  17. 17. Copyright LeanCor Supply Chain Group
  18. 18. Copyright LeanCor Supply Chain Group • Reduced inventory investments • Reduced lead times • Reduced transportation investment • Mutual cost savings due to collaborative problem solving • Execution of plans is easier for all parties involved • Optimized material flow throughout Supply Chain • Increased team morale, decrease in firefighting • Stronger relationships with suppliers
  19. 19. Copyright LeanCor Supply Chain Group WED, August 13 | 11:00 – 12:00 EDT Register Now: http://info.leancor.com/webinar-august-13-three-ps- of-carrier-performance-0
  20. 20. Copyright LeanCor Supply Chain Group Ashley Yentz ayentz@leancor.com 925.899.9725 Let’s connect on

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