CFW Supply Chain Event - Contract Law - Berry Smith LLP
-
Upload
rae-davies -
Category
Small Business & Entrepreneurship
-
view
762 -
download
0
Transcript of CFW Supply Chain Event - Contract Law - Berry Smith LLP
PowerPoint Presentation
Supply Chain Development
John Clement / Ian Widdrington (CFW Consultants)Iwan Duoll (Partner Berry Smith LLP)6th October 2015
Sourcing Requirements and DefinitionsDeveloping and Managing your Current Supply ChainAwareness of Contractual issues in Supply ChainsWorking on a Project or Framework based Supply ChainPerformance Measurement in the Supply ChainCustomer ValueAgenda
Construction Futures Wales
Partnership between Welsh Government & CITB WalesJoint Investment Strategy 3m gross over 3 years.to support economic growth Revenue only programme funding specialist consultancy support
How can we help you?
Company Health Check, Full Business Diagnostic, Benchmarking & Strategy Planning
Events, networks, news and reviews
Fully Accredited Leadership & Management Courses (Cardiff Met / CIM)
Expert Consultancy, Supply Chain Development, Collaborative Working, Understanding Costs, Sourcing, Quality Standards, LEAN, (etc)
How do I access this?www.constructionfutureswales.co.ukwww.dyfodoladeiladucymru.co.uk
Click Apply Now to start the processTwitter: @CFW_Wales
Press The Apply Now Button!CFW seeks to support growth companies10 employees, T/O exceeding 500kPotential for growth & developmentFor convenience form on your table
Supply Chain Development
Construction Excellence Model
In simple terms:
the sequence of processes involved in the production and distribution of a commodity.
Supply Chains
Schematic Supply ChainGroundworksFabricationBuildM&EFinishesFacilities ManagementBrickworkModular / Off Site / MMCArchitectsStructural EngineersSite ManagementSecurityEtc.
DesignMaterialsFabricator/WeldersFinishers e.g. GalvanisersCraneErectors
UBUC AnglesFlatsBolts SheetingPrecast ComponentsWelding ConsumablesPowerPPEetc
Client Main Contractor
Sub-Contractors and Suppliers
The Fundamental Building BlockSUPPLIERCUSTOMER
ANTICIPATERESPONSEOUTPUTREQUIREMENTS
ExerciseWho Are your Suppliers?
How did you Recruit them?
(In table groups for 10 minutes)
The Supply Chain
Internal Supply Chain
Dont Forger Your Company - Internal Customers and SuppliersYour Company
Needs and Pressures In Supply Chains
SafetyCompetitive PriceCompetenceComplianceReliabilityResponsivenessEnvironmental AwarenessCI & InnovationPayment OTIFSafe Working EnvironmentFuture Business
PressuresClient DemandsFinancialDelaysOther SuppliersProject Slippageetc PressuresSpec ChangesFinancialDelaysT#2 SuppliersUnforeseen Snagsetc Contract
..+ Collaborative RelationshipsSUPPLIERCUSTOMER
OUTPUTREQUIREMENTSNeeds and Pressures in Supply Chains
Service Levels In Supply Chains
Trade Off Between Stock and Service
WorkforceOr StockServiceLevel Issues
Profit
WorkforceOr Stock Trade Off Between Stock and Service
ServiceLevel IssuesProfit
WorkforceOr Stock Trade Off Between Stock and Service
ServiceLevel IssuesProfit
Labour Lean Mater ial Inventory
Overhead
Payment
LoansTank of FundsClient ProjectsCash FlowDiagram
Client ControlYour Control
< 30 WorkingDays
Cost Reduction InitiativesBest In Class:82% accuracy in forward planning beyond 3 months97% of orders are OTIFCash Out Cash In 26 Days2x more likely to collaborate with Customers on a strategic levelUnderstand trade off between Stock and Service Level
Construction ContractsCost Plus Reimbursable/Re-measurableLump Sum ContractsDesign and BuildTurnkeyDesign and Build and Operate
Increased Supplier Pressure Usually: NECJCT
Carillion Video
Sourcing and Measurement
Potential Supplier SourcesCurrent SuppliersSales RepresentativesConstruction Futures Wales Meet the Buyer & EventsInformation databasesExperienceTrade Journals / AssociationsTrade DirectoriesIndustrial Trade Shows / ExhibitionsSecond-Party or Indirect Information (CIOB, Linkedin etc.)Internal sources or external contactsInternet Searches
ExerciseDo you currently measure supplier performance?What measures do you have?What does good look like?Do you use your findings?Do your customers measure your performance?
Measuring Supplier PerformanceQuality Cost DeliverySafetyEnvironmentInnovationResponsive To ChangeAccreditationsCommunity Benefits
An enterprise should measure supplier performance because:
You cant manage what you dont measure. If you measure suppliers, they will improve. You can uncover and remove hidden waste and cost drivers in the supply chain. You can facilitate supplier performance improvement. You can increase competitiveness by shrinking order cycle times and inventory levels. You can make informed business decisions that impact the enterprise.Why Measure Supplier Performance?
Chartered Institute of Procurement and Supply (CIPS)
SafetyQualityCostDeliveryCompletionEnvironmentMoraleAccreditationsReal Time By Model CostingKPI Design
Importance to CompanyAnnual SpendItems used in products which contribute greatly to sales or profitItems used in a large number of productsItems used on a bottleneck resourceItems used in a new product, which is vital to future growthCost of non availability is highOthers?
Supply ComplexityItem is in scarce supplyThe pace of technology change is highImpossible to use an alternativeBarriers for a new supplier to enter the market are highLogistics cost of buying item is highSupply RiskLength of supply chainSpend with supplier is low
ComplexityHighLowHighLowNon-Critical
Handle EfficientlyBottleneck
Ensure SupplyStrategic
CooperateImportance(, Critical, Scarce)Supply Chain Risk EvaluationLeverage
Exploit Market Potential
Recognise Need For Supplier SelectionPurchase Order Received/Won ContractNew Product Development/IntroductionDont have skills or amount of resource requiredCurrent Supplier not supportive of your companyPoor Supplier Quality or DeliveryReduce RiskReduce Cost
Vetting SuppliersEOIPQQFinancial StatusCapability to do the jobQualifications / AccreditationsExamples of workSupply Chain for this ProjectSupply Chain for 3-5 Years+
Methods of Supplier EvaluationCompetitive tenderingEvaluation of supplier provided informationUse of initial surveySupplier visitsUse of cross functional teamUse of preferred suppliersCurrent performance dataExternal or third-party informationE.g. Dunn and BradstreetEvaluation of sample products
Key Supplier Evaluation CriteriaManagement CapabilityPersonnel capabilitiesCost structureTotal quality performance, systems and philosophyProcess and technology capabilityEnvironmental regulation complianceFinancial stability and capabilityDelivery performance and planning systemsE-commerce capabilitySupplier purchasing strategiesLong term relationship potential
Collaboration in Supply Chains
Exercise Toxic WasteRulesTo Safely Transport the Toxic Waste from Point A to the Decontamination Zone B.Use the given Removal DeviceDue to toxicity dont get too close, hold string 6 (150mm) from the endIf you drop the Toxic Waste go back to the startPlan and work collaboratively to complete the task as quickly and safely as possible
Supplier Development
WorkshopsValue Stream MappingCost DownLeanContinuous ImprovementCollaborative working / TeamworkAssisting Supply Chain to achieve Certification/ Accreditations
Customer Value
Building Customer ValueTwo Faces of Customer ValueValue of Companyto CustomerValue from Customerto Company
43
Customer Value
Building Customer ValueValue of Companyto Customer
Value of Products & ServicesQualityCost (Parts, UK Landed)Flexibility & SpeedComplete Business SolutionValue of RelationshipTrustKnowledge & ExpertiseResponsivenessConvenienceValue of the BrandConfidence (Investors, Suppliers & Customers)Deliver PerformanceImprove Processes & SystemsMaterial Control & CD programmePromote C.I.Develop Organisation
Foster Customer RelationsProfessionalism & DeliveryUse All Resource & Develop more
Protect the BrandChoose the Right CustomerChoose the Right ProjectsPriorities
45
Value from Customerto Company
Cash InHealthy Balance SheetInvestment for the FutureGrow Company ValueSupport Local Economy Customer ImpactKnowledge Gained from CustomerCustomers Influence on OthersRecommendationsCustomer Lifetime ValueLong Term PartnershipsDrives Continuous ImprovementAppropriate MarginsOnly Value Adding CustomersDisinvest when NecessaryPromote Our After-Sales ServicesFocus on Existing ClientsInnovate Products & ServicesMarketing by Customer Case StudiesActively Seek Referrals
Formalise Assessment MethodManage / Influence Product LifeUse Data to Drive C.I. Programme
Building Customer Value
Priorities
46
Workshop Close
Any Questions?
John 07795 [email protected] 07717 [email protected]
48