LeanCor Logistics Webinar: Supplier Performance - The Keys to Collaboration

The Keys to Collaboration

Copyright LeanCor Supply Chain Group

Ashley Yentz Director - Account Management

LeanCor Supply Chain Group

[email protected]

Career Focus Areas:

Entire career committed to lean logistics – customer account management, change management, KPI creation, lean leadership, network design, standard work and operating procedures Skilled in coaching organizations through their lean logistics implementation: strategy deployment, culture change, process standardization

Prior Roles:

•Kaizen Leader, Strategic Planning - Toyota Motor Sales U.S.A. •Continuous Improvement Leader - Toyota’s Parts Operation Supply Chain •Transportation Analyst - Hilti, Inc.

mailto:[email protected]



Michelle Cribbs Manager – Lean Supply Chain

Operations

LeanCor Supply Chain Group

[email protected]

Career Focus Areas:

Experience in supply chain, transportation and purchasing management. Works alongside purchasing professionals at LeanCor Logistics customer facilities to increase and improve supplier performance, manage and reduce inventory, and decrease transportation cost. Her knowledge and understanding of MRP systems is instrumental in streamlining customer processes with LeanCor’s solutions.

Prior Roles:

•Logistics and Materials Coordinator - Siemens Energy & Automations •Account Executive - Total Quality Logistics




• Lean, supply chain, six

sigma, and leadership

courses that develop

people capability and

problem solving skills

while building a culture of

operational excellence.

Project-based, end-to-

end supply chain

solutions that improve

your processes, reduce

inventory and Total Cost,

and optimize your

network.

Custom, outsourced

transportation

management and

warehousing

solutions that optimize

material flow, and exceed

your business goals.

Trusted supply chain partner that specializes in lean principles to

deliver operational improvement. Three divisions:


Custom, outsourced transportation management and warehousing

solutions that optimize material flow and exceed your business goals

Transportation

Management

Dedicated

Warehousing and

Distribution

Web-Based TMS


• Revenue growth is more difficult to achieve, costs are increasing, and margins are shrinking

• Changing customer requirements require an agile and dynamic supply chain that’s hard to manage

• Shortages in materials is driving excessive expedites and intercompany logistics.

• Large inventories have become the norm to “buffer” for an unstable supply base.

• Price based negotiations has moved you towards “combative” relationships with your supply chain partners

• Changes due to complexities in market, channel, supply networks, and distributed facilities has added difficulty to supply chain planning and decision making.

Which of these challenges resonates in your business?


What kind of relationships have you built with your suppliers?

•Shared Strategic Objectives

•Managed by relationship

•Discretionary efforts & investments in customer success

•Inclusive and Open

•Shared business objectives

•Supplier maximizing value

•Limited customer directed innovation

•Maximize profits through waste elimination

•Focus on operational costs (Supply Chain/Quality)

•Maximize profits through piece price

•Low relationship value

•Price based negotiation


Collaboration leads to:

• Increased visibility to material movement

• Advanced warning of issues

• Increased on time delivery

• Reduced Lead Times

• Reduced Inventory

• Better Quality

• Shared savings from Supplier cost reduction

• Supplier involvement in product/service development

• Win/Win scenarios


Shortage Recovery and Unplanned

Order Process

Time to react is critical to reducing and

avoiding cost.

Systems like LeanCor’s Orloe Toolkit can

proactively notify you and your

stakeholders when events within the

supply chain happen.

Such situations can include:

• An order quantity has been revised

• Route instructions have been released

• A discrepancy between your order

quantity and the supplier's ship

quantity has occurred

• The supplier has failed to enter a ship

quantity or the quantity recorded was

zero

A Transportation Management System

(TMS) should notify all stakeholders

of an incomplete shipment and

available recovery options before

delivery.

Do you currently use a TMS or ASN System?


In a system, a process that

occurs will tend to increase the

total entropy of the universe.

Second law of thermodynamics

System: A group of interacting, interrelated, or interdependent

elements forming a complex whole.

Entropy: The steady deterioration of a system or society.


How often do you share your suppliers’ performance?

Lead Time On Time and In Full

Quality: Defects Cooperation/Partnership

Reviewed by: Supplier & LeanCor Date: 6/12/15

Good Caution Take ActionLeanCor Supplier Scorecard

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May

Target Green Target Yellow Red Zone OTIF %

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN

0

5

10

15

20

25

May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May

Lead Time Vendor Stated Lead Time


Supplier View – Shipment Discrepancy

All Users View – Live Historical Performance Summary


• Identify top offenders

• Identify gaps

• Set targets to improve

• Assign clear action and

support for improvement

• Conduct collaborative problem

solving

• Set regular cadence to review

Do you have a disciplined Management System to improve?


How often do you problem solve with your suppliers?

Do the Work & Identify the Problem

Plan & perform the work.

Identify gap between plan vs. actual condition.

Define the Problem

Document & validate current state.

Develop a clearly defined problem statement.

Determine Root Cause

Identify all possible causes to the problem.

Isolate critical few root causes to the problem.

Identify Solutions

Develop solutions that address the root causes to the problem.

Ensure the solutions support the entire value-stream.

Implement & Sustain the Solution

Communicate, train, and Implement the solution.

Measure and monitor the impact of the solution.

Learn

Op

tim

ize

Execu

te

Op

erate

Review


• Reduced inventory investments

• Reduced lead times

• Reduced transportation investment

• Mutual cost savings due to

collaborative problem solving

• Execution of plans is easier for all

parties involved

• Optimized material flow throughout

Supply Chain

• Increased team morale, decrease in

firefighting

• Stronger relationships with suppliers


WED, August 13 | 11:00 – 12:00 EDT

Register Now:

http://info.leancor.com/webinar-august-13-three-ps-

of-carrier-performance-0


Ashley Yentz

[email protected]

925.899.9725

Let’s connect on




LeanCor Logistics Webinar: Supplier Performance - The Keys to Collaboration

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Transcript of LeanCor Logistics Webinar: Supplier Performance - The Keys to Collaboration