Monday, February 18, 2013

New guest blog from Chuck Intrieri about Supplier Day



February 18, 2013

HOW TO USE A SUPPLIER DAY FOR COLLABORATION AND MEETING YOUR GOALS:

What is a Supplier Day?
A supplier day is a concept where you bring in your main suppliers either by commodity or critical suppliers for collaboration and continuous improvement. You also tap the suppliers for their knowledge, cost reduction and quality improvement.
What process is used to begin a Supplier Day?
A letter by the coordinator who is chosen and each supplier is sent an agenda outlining hour by hour what will occur from 9am to 2pm. The agenda is set. Attached to that letter is a Value Analysis Questionnaire where you ask the supplier for questions on ideas they may have to decrease cost and yet maintain and never jeopardize quality. They are the experts in the field and they should come forward with some cost reduction ideas for you, if the right questions are asked (attached to the letter with the agenda on it).
Expected results
What happens is they would take your part that you would buy from them. They would see the part and if they could eliminate some processes in their plant to reduce the cost. They can see if other materials can be used. They can see if a standard part can be used in place of a specialized part. They can suggest finishes that are alternatives, rather than the finishes you suggest. They take a look at your specifications and look at alternatives to reduce cost but not jeopardize quality.
Benefits of Collaboration
Collaboration is the very essence to Supplier Day. You want to collaborate, trust and work with your suppliers. I believe there should not ever be a pounding on the table for cost reduction, but rather a discussion and systematic approach to cost reduction and collaboration.
You can talk about long term contracts. You can talk about trust between each other. You can talk about how you can improve continuously together and what their new products are and how that might fit into your future growth. You need them as much as they need you. It is a collaboration of trust and understanding.
How does it end?
After a plant tour and a one-on-one discussion with each supplier to review their value analysis ideas, contracts and collaboration. Everyone returns back to the conference room and the coordinator wraps up the meeting after the supplier has had a chance to speak and comment about the day's meeting. Before they leave he gives them the card that states you would like their input about the meeting; how it could be improved, changed or critiqued. That way, you can continuously improve the supplier day conference.
Mr. Joe Rossini can add a lot to this. He has tried a Supplier Day Conference and added his specialty to this Supplier Day Conference.

About Chuck Intrieri
World Class Logistics/3PL/Distribution VOC Consultant
Management Consultant
World Class Companies
Linked IN profile http://www.linkedin.com/profile/view?id=120367919&authType=name&authToken=tRf-&goback=.rmg_*1_*1_*1_*1_*1_*1_*1_*1_*1

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