High Tech; Pharmaceutical; Consumer Products; Electronics; Chemical; Manufacturing; Retail; Biotech; Biopharmaceutical; Telecommunications; Automobile; Financial Services; Computer Hardware; Computers; Aerospace; Office Equipment; Banking; Internet; Medical Device; Transportation; Insurance; Health Care; Computer Software; Defense; Consulting; Government; Technology; Shipping; Logistics; Utilities; Professional Services
Advanced Micro Devices; Sanofi-aventis; Gerber; Pioneer Electronics; Amer Group; Gilbarco; PPG Industries; Inc.; Ashland Specialty Chemical Company; GlaxoSmithKline; Pratt & Whitney; Associate Food Stores; Haggar Clothing & Wrangler; Inc; Prestone; AT&T; Automotive Industry Action Group; Harley-Davidson; R.J. Reynolds Tobacco; Hewlett-Packard; Raytheon; Baldor Electric; Home Depot; Rockwell Automation; Bayer Corporation; HON; Rohm and Haas Company; Boeing; IBM; Roll Coater; Boise Cascade Corporation; Intel; Sara Lee; Boston Scientific; ISP Europe; Saturn Corp.; Bristol-Myers Squibb; Johnson Controls; SBC Communications; Cessna Aircraft Co.; Kaiser Aerospace & Electronics; Schering-Plough; CHEP International; Kaiser Permanente; Sears; Roebuck & Co.; Colgate-Palmolive; Kennametal; Solectron; Copeland Corporation; KimberlyClark; Sony; Corning; Kraft; Stanley Aviation Corp; Crown Holdings; K-Tec Electronics; Sun Microsystems; Cummins Engine; Lennox International; B.A.G. Corp.; DaimlerChrysler; Lockheed Martin; Target; Degussa AG; Lord Corporation; Telcordia Technologies; Delphi Corporation; Magna International; Texas Instruments; U.S. Department of Defense; Marks & Spencer; The Limited; Marlow Industries; Roche; Eastman Chemical; Mason & Hangar; Timken Faircrest; Eaton Corp.; MeadWestvaco; Toyota Motors; Edy’s Grand Ice cream; MEMC Electronic; Tyco; Eli Lilly and Company; Milliken; Unilever; Emerson Electric; Monsanto; Union Technologies; Exxon Mobil; Motorola; United Defense; FedEx; Norfolk Southern; USCO Logistics; Florida Power & Light; Northrop Grumman; Varian Medical Systems; Ford Motor Company; Novartis; Verizon; Frito-Lay; Osco Foundries; Wal-Mart; Fullerton Metals Co.; PCI; General Electric; PEMSTAR; Xerox; General Motors; Perot Systems; Zymark; Philips Electronics; Trident Microsystems
This research uncovered more than 200 valuable practices, benchmarks, tactics and strategies. It is noteworthy that many companies view their relationships and methods of interacting with their suppliers as one of the few advantages they have over their competitors.
Best Practices, LLC was able to identify and profile the most effective practices embedded in these companies' winning supply chain management strategies. More than 100 fast reading but vital pages of information are presented in this report. A few of the many findings include:
Assess and measure supplier-partners through certification, audits and other quality reviews to develop effective partnerships. Leading companies assess suppliers before entering into partnerships or other business arrangements with them. Such initial and ongoing review can include surveys, audits and certification. Certification establishes a common language that in turn fosters an increased level of trust and understanding between partners. Certification also raises confidence in supplied services and materials, giving the company the freedom to rapidly — or even immediately — place those supplies in its own lines.
Excellent companies often certify suppliers at different levels, reflecting the strength, depth and maturity of the relationship. Initially, detailed audits and operational reviews are typically conducted to reveal supplier capabilities and potential synergies before supplier selection or certification occur.
Integrate suppliers/partners into processes and development early. Automakers have been leaders in this concept of involving partners in their business processes from the design stage on. The result of this organized and planned cooperation: streamlined processes, improved products and reductions in costs.
Foster communication with and between partners. Extensive communication mechanisms are necessary to establish “deep” supplier relationships. Rather than choosing one or two ways of working with their vendors, world-class companies employ a plethora of communication tools such as cross-functional, cross-corporate teams to promote the exchange of objectives and ideas. Moreover, high performing supply chain management companies encourage interaction with key suppliers at all levels of the organization, particularly upper management.
Reduce suppliers to reduce costs and share cost savings with preferred suppliers. Leading companies use criteria to screen suppliers for business. Through this process and others, companies reduce their supplier bases, forging closer relationships with remaining suppliers that in turn leads to lower total costs and inventories, improved working capital and better products. Narrowing the supplier base also benefits remaining vendors, who usually increase business volumes in exchange for lower unit pricing.
These are the headlines from just a few of the 200 insights gathered in the report. Download the report summary for even more detailed information.
Table of Contents
· Project Background
· Project Focus
· Benchmark Class
· Key Findings
· Process Map
· Report Structure
Chapter 1: Supplier Identification and Selection
· Internal Needs Assessment Prior to the Selection Process
· Capability Determination
· Inspection and Certification
Chapter 2: Supply Chain Technology
· Electronic Communication Systems
· Systems Integration and Software
Chapter 3: Cooperative Design, Manufacturing and Supply Chain Process Enhancement
· New Product Design and Development
· Process Improvement
· Performance Measurement
Chapter 4: Relationship
· Communication Mechanisms
· Problem Solving
· Performance Management
· Training and Support
Chapter 5: Rewards & Recognition
· Rewards and Recognition
List of Charts & Exhibits
Supplier Certification Process
Daimler Chrysler’s Screening Process
FedEx’s Supplier Selection Process
Supplier and Customer Collaboration
Milliken & Co.’s Supplier Awards and Certifications
Motorola’s Supplier Segmentation Criteria
Winning Together at Monsanto
Continuous Supplier Reduction
Solectron’s Supplier Inspections
DuPont’s Supplier Certification Criteria
Focus on the Benefits of Certification
EDI Deployment Sample
Best-in-Class Plants Use EDI Intensively
Boeing’s IPD Certification Process Measures the Following
Average Improvement on Pretax Profits Through 10% Cost Reduction
Saturn Corporation Competitiveness Scorecard
Supplier Performance Measures
SBC Supplier Quality Report
Daimler Chrysler’s Score Program Extends Beyond the Supply Chain