New model for industrial supplier cost reduction

1. Build Automaker/Supplier relations
Build on supplier group strengths
Create collaborative efforts

2. Survey Data
Gap analysis
Missed opportunities
Account Annual Revenue 3% Cost improvement Raw Material Machine process Assembly Components Packaging Tooling QC Ttl. Potential %
Supplier X $42,000,000.00 $1,260,000.00 $18,657.00 $10,000.00 $20,000.00 $48,657.00
Supplier X $19,138,671.00 $574,160.13 $30,000.00 $30,000.00
Supplier X $29,800,000.00 $894,000.00 $13,410.00 $13,410.00
Supplier X $20,000,000.00
$600,000.00 $3,000.00 $3,000.00 $3,000.00 $9,000.00
Supplier X $24,937,124.00 $748,113.72 $3,740.00 $3,740.00 $3,740.00 $11,220.00
Supplier X $637,300,000.00 $19,119,000.00 $71,500.00 $55,000.00 $68,000.00 $82,000.00 $276,500.00
Supplier X $24,937,124.00 $748,113.72 $5,000.00 $6,000.00 $11,000.00
Supplier X $114,454,560.00 $3,433,636.80 $25,000.00 $14,000.00 $4,000.00 $8,000.00 $504.00 $51,504.00
Supplier X $12,100,000.00 $363,000.00 $400.00 $2,200.00 $3,200.00 $5,800.00
Supplier X $20,000,000.00 $600,000.00 $3,000.00 $3,000.00 $3,000.00 $9,000.00
Supplier X $20,000,000.00 $600,000.00 $3,000.00 $3,000.00 $3,000.00 $9,000.00
Supplier X $100,000,000.00 $3,000,000.00 $5,000.00 $13,000.00 $2,500.00 $20,000.00 $4,000.00 $44,500.00
Supplier X $2,500,000.00 $75,000.00 $1,125.00 $1,125.00
Supplier X $100,000,000.00 $3,000,000.00 $20,000.00 $25,000.00 $45,000.00
Supplier X $29,000,000.00 $870,000.00 $3,000.00 $5,000.00 $5,000.00 $13,000.00
Supplier X $29,000,000.00 $870,000.00 $5,000.00 $3,000.00 $5,000.00 $13,000.00
Supplier X $20,000,000.00 $600,000.00 $5,000.00 $4,000.00 $9,000.00
Supplier X $47,200,000.00 $1,416,000.00 $8,000.00 $10,000.00 $240.00 $3,000.00 $21,240.00
Supplier X $20,000,000.00 $600,000.00 $3,000.00 $3,000.00 $3,000.00 $9,000.00
Supplier X $500,000.00 $15,000.00 $225.00 $225.00
Supplier X $100,000,000.00 $3,000,000.00 $10,000.00 $10,000.00 $10,000.00 $12,000.00 $2,500.00 $44,500.00
Supplier X $90,800,000.00 $2,724,000.00 $10,000.00 $10,000.00 $10,000.00 $10,000.00 $860.00 $40,860.00
Supplier X $20,000,000.00 $600,000.00 $9,000.00 $9,000.00
Supplier X $100,000,000.00 $3,000,000.00 $15,000.00 $15,000.00 $15,000.00 $45,000.00
Supplier X $500,000.00 $15,000.00 $225.00 $225.00
Supplier X $27,400,000.00 $822,000.00 $6,000.00 $8,000.00 $14,000.00
Supplier X $500,000.00 $15,000.00 $225.00 $225.00
Supplier X $100,000,000.00 $3,000,000.00 $5,000.00 $12,000.00 $5,000.00 $20,000.00 $2,500.00 $500.00 $45,000.00
Supplier X $100,000,000.00 $3,000,000.00 $5,000.00 $12,000.00 $5,000.00 $20,000.00 $2,500.00 $500.00 $45,000.00
Supplier X $500,000,000.00 $15,000,000.00 $120,000.00 $55,000.00 $43,000.00 $7,000.00 $225,000.00
Supplier X $50,000,000.00 $1,500,000.00 $10,000.00 $10,000.00 $2,500.00 $22,500.00
Supplier X $50,000,000.00 $1,500,000.00 $10,000.00 $10,000.00 $2,500.00 $22,500.00
Supplier X $20,000,000.00 $600,000.00 $9,000.00 $9,000.00
Supplier X $40,000,000.00 $1,200,000.00 $5,000.00 $5,000.00 $5,000.00 $3,000.00 $18,000.00
Supplier X $98,549,352.00 $2,956,480.56 $22,000.00 $500.00 $347.00 $20,000.00 $2,500.00 $45,347.00
Supplier X $20,000,000.00 $600,000.00 $8,000.00 $1,000.00 $2,000.00 $11,000.00
Supplier X $9,000,000.00 $270,000.00 $4,050.00 $4,050.00
Supplier X $50,000,000.00 $1,500,000.00 $8,000.00 $5,000.00 $4,000.00 $3,000.00 $2,500.00 $22,500.00
Supplier X $100,000,000.00 $3,000,000.00 $10,000.00 $10,000.00 $10,000.00 $5,000.00 $5,000.00 $40,000.00
Supplier X $100,000,000.00 $3,000,000.00 $10,000.00 $10,000.00 $10,000.00 $5,000.00 $5,000.00 $40,000.00
Supplier X $128,000,000.00 $3,840,000.00 $20,000.00 $22,000.00 $5,000.00 $1,000.00 $4,000.00 $5,000.00 $600.00 $57,600.00
Supplier X $33,900,000.00 $1,017,000.00 $5,000.00 $8,000.00 $2,255.00 $15,255.00
Supplier X $10,000,000.00 $300,000.00 $4,500.00 $4,500.00
Supplier X $20,000,000.00 $600,000.00 $3,000.00 $3,000.00 $3,000.00 $500.00 $9,500.00
Supplier X $13,600,000.00 $408,000.00 $6,120.00 $6,120.00
Supplier X $100,000,000.00 $3,000,000.00 $15,000.00 $15,000.00 $15,000.00 $45,000.00
$0.00
. $3,195,116,831.00 $95,853,504.93 $385,397.00 $361,775.00 $245,495.00 $233,842.00 $138,744.00 $99,500.00 $8,110.00 $5,751,210.00

3. PROBLEM:
Increasing pressure to
reduce costs has created a
strain on supplier relations.
SOLUTION:
We’re adding transparency
and collaboration to the cost
reduction effort.

4. Collaborating at an even greater level
to achieve momentous cost reduction

5. Re-Leveraging the power of a $3B supplier base
Establishing the maximum effort towards $95M target
Applying the maximum $23M group effort
Connect, collaborate, and integrate innovation

6. Supplier Dashboard
Overall Effort
Best Practices to
Resources
Gap Analysis and planning

7. Interrupting Survey Data
A
B
C
D
E
A
B
C
D
E
A
B
C
D
E
A
B
C
D
E
Above Average Below Average
COST IMPROVEMENT IMPACT
*STAMPING OPERATION SURVEY
Category 1
Category 2
Category 3
Category 4
$25,000$5,000$0
Sample indicates: Lack of resources, lack of
information
Actionitems: Provideresources,choices,
technical training
Sample indicates: Lack of innovation,
Action items: Submit to R&D facilitators,
target area for innovation development
Sample indicates: Lack of capital, lack of
forecast, planning
Pivot actions: Manage resources, deliver
technical support
Sample indicates: Lack of innovation ROI, lack
of capital investment
Actionitems: Submitto R&D, offer energy
incentives
3% Growth
Target

8. Business ModelConceptual Model

9. Going beyond even the most advanced supplier
collaboration and innovative models and inviting strategic
innovation opportunities

10. Jason Gallion
P: +1 (614) 286-5142
E: Jason.Gallion@MohawkData.com
Apollo Technology, LLC
565 Metro Place #300
Dublin, OH 43017
Our Purpose is to fund innovation
through mutual benefits.
Our Objective is the alignment of
cost reduction Technology and
cost improvement requirements.
Our Mission is to provide
innovative opportunities.