Post on 15-Apr-2017
05/02/2023
Grant Grundy
Supplier Reduction
Chemical PurchasingCathy CoonHoward University, Supply Chain Mgmt.May 2017
Auburn Hills, USA
Destination 2020:
205/02/2023
Purchasing and Supplier Quality have a plethora of
suppliers across commodities.
Inefficient expenditure of funds on resources that don’t meet requirements
outlined in metric performance (quality,
shipping, etc).
Problem
305/02/2023
Goals
Ensure thorough review of suppliers within all Chemical clusters while supporting the four year objective.
Develop maintain and exit plans for every exterior plastic supplier.
Develop cross commodity supplier strategy for at least two exterior plastic suppliers.
405/02/2023
Compiled master list of exterior plastic
suppliers encompassing less
than $100K AVOB per year.
Consulted with Chemical buyers in
regards to maintain/exit plans.
Developed cross commodity strategies
for two critical suppliers.
Roughly 400 suppliers were examined. (Maintain=205,
Exit=195)
Steps
Wilbert Plastic ServicesCross Commodity Strategy- Exit
05/02/2023 5
Founded in 1886, plastic manufacturing began in 1966.
Services 10 industries, 40% automotive.
Sales volume of $290M.
Two parts sourced through PF program and no guaranteed program for growth.
----------------------
Wanted guaranteed new business.
WPS capacity sold, parts were resourced.
Name Supplier Sum of 2015 AVOB Sum of 2014 AVOBWILBERT PLASTIC SERVICES 62776 77,013$ 237,734$
05/02/2023
US Farathane Cross Commodity Strategy- Exit Fuel Housing Commodity
6
Sales volume of $520M.
Fuel housing commodity makes up 4.3% of business in this commodity.
Excellent in productivity.
Business performed in 24 commodities.
Red in quality.
Infringed on a patent, grounds for reduction.
Name Supplier Sum of 2015 AVOB Sum of 2014 AVOBU S F CORPORATION 93785 7,209,162$ 7,078,929$
05/02/2023
Significance
7
Lowers expenditure cost.
Decreases buyer workload.
Helps maintain healthy relationships with
suppliers.
-Major Areas for Supplier Reduction & Management
05/02/2023
Summary
8
Abundance of Chemical suppliers.
Implemented grow/exit plans and developed commodity strategies.
Maintain 205 suppliers and exited 195.
Contributed master list of exterior plastic suppliers via P&SQ Share Point.
05/02/2023
Supplier Reduction ChartMaintain and Exit Plans for exterior plastic suppliers.
9
Yellow highlights supplier codes no longer in use across commodities.
Red represents suppliers encompassing less than $100K in Annual Value of Business.
05/02/2023 10
Thank You!-Questions?