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Active Innovation In The Manufacturing Supply Chain

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Why and how you should be getting your suppliers to innovate your products for you

Published in: Business, Technology
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Active Innovation In The Manufacturing Supply Chain

  1. 1. INnovati on In the Supply Chain in action
  2. 2. Presentation Road Map Advantages of Active Innovation in the Supply Chain Sourcing Suitable Suppliers Encouraging Active Innovation Innovation in Action Real Results of Active Innovation
  3. 3. News Talk ‘The future of manufacturing innovation is dependent on active participation from the supply chain’ – SupplyChainStandard.com
  4. 4. News Talk Nokia attribute their recent resurgence in the handheld telephone market to active participation from their supply chain.
  5. 5. Advantages of Active Innovation in the Supply Chain Efficiency Get products to market faster. Increased revenues and profits earlier. Improve success rate of new products by making the innovation process stronger. Expertise Diversification Uncover more opportunities through reaching out to expertise of a completely different specialization to that of your R&D department Diversify risk, by sharing uncertain technologies with suppliers. Experts from different areas are able to objectively evaluate and foresee issues/problems
  6. 6. Essential to the future of Manufacturing Mankind’s collective knowledge is constantly expanding. Science and technology is advancing more rapidly than ever. Businesses cannot expect to retain all of this knowledge in house. They must look to external partners in their supply chain to acquire this expertise.
  7. 7. How to Encourage your Suppliers to Innovate for you
  8. 8. 1 Inform Suppliers of your GOALS ALSO state your reasons for trying to achieve these goals eg. If the market dictates a ceiling price, you must communicate this to your supplier. Otherwise, they may feel you are simply trying to pressure them on price.
  9. 9. 2 Inform Suppliers of the BENEFITS 1 Being the driving force behind the improvements puts them in a fantastically strong position to win the work. 2 3 Able to quickly easily move into production because they’ve already got tools, fixtures, programs from development. Their expertise has contributed to the design – processes will match their equipment, increasing efficiency to manufacture.
  10. 10. Active Innovation in Action
  11. 11. Case Study 1 – GCA Cable Clamp The Background: Active Innovation in Action GCA manufactures a special purpose cable clamp, for use in the telecoms market, destined to supply to their pool of blue chip international clients. At the time, a different clamp was being used for each of the 3 different sizes of beam. The Requirement: GCA wanted to reduce their inventory by innovating a single clamp that would attach a cable to all 3 different sizes of beam. The Approach: Design Clamp Manage Production Quality Control
  12. 12. Case Study 1 – GCA Cable Clamp The Results Diamond designed a Single clamp, which incorporated all of the required features, amalgamating them in a way that did not reduce the individual design functionality and where possible improved added functionality. 1 clamp that does the job of 3. Diamond advised on appropriate manufacturing processes. The design was finalised by Diamond and approved by GCA. Then a suitable manufacturer was chosen. A number of worldwide locations were researched and the decision was made to outsource manufacture to a qualified supplier in NorthWestern China.
  13. 13. Case Study 1 – GCA Cable Clamp The Benefits • Economies of Scale • 60% reduction in Larger volume of single inventory purchase, thereby reduced cost 1 Clamp that does the job of 3 • Less cash tied up in stock - Improved cash flow • 60% reduction in stock waste at end of product life cycle
  14. 14. Case Study 2 – Pure Bike Co. The Background: Active Innovation in Action Pure Bike Co. have in depth expertise and product knowledge of BMX pedals. Diamond have expertise in manufacturing and a dynamic supply chain. Pure Bike Co. are surveying the market, finding the best design features. Diamond are designing new BMX pedals with Pure Bike Co. input.
  15. 15. Case Study 2 – Pure Bike Co. The Benefits • • • Machining processes cut down from 3 to 1 – Cost Saving. Quick assemble of the pedal to the crank Weight saving from use of optimum materials.

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