Supply Chain Development
Introduction
Today, supply chain development means much more than simply overcoming isolated supplier problems. Throughout all sectors of industry, there is a growing appreciation that even the best companies are only as strong as the weakest link in the whole supply chain.
For products and services to be competitive in the global market, the whole supply chain needs to work together to:
- Be innovative
- Work with common goals and objectives
- Be capable of flexibility and response
- Drive sustainable continuous improvement
- Build strength through Partnership
What is a Supply Chain Group Activity?
Industry Forum has 10 years experience working with supply chain group companies to develop the strategies, skills and capabilities that will enable them to achieve sustainable continuous improvements, drive costs down and ensures quality and delivery performance targets are achieved.
Industry Forum supply chain groups comprise a structured but flexible series of activities bringing the together the key suppliers from different tiers in the supply chain (typically 6 to 10 suppliers). The supplier involvement is determined by a Business Improvement Review to determine their criticality to your organisation based on current performance and future needs.
All Industry Forum supply chain groups follow a "3 Way" development approach, combining structured improvement activities, developing capable change agents and building supply chain partnerships
Industry Forum supply chain groups follow four key phases of activity, overseen by a central steering group comprising senior representatives of the host company and from each supplier's management team. This four phase methodology has been demonstrated to ensure a structured, aligned approach to sustainable continuous improvement.
Example Benefits to an Individual Company on a Supply Chain
| Supplier Sector | Measure | Before | After | |
|---|---|---|---|---|
| Aerospace | Delivery Schedule Achievement | 7% | 100% | |
| Automotive | Not Right First Time (parts per million) | 4166ppm | 0ppm | |
| People Productivity (parts per million) | 72.7 | 100 | ||
| Aerospace | Delivery Schedule Achievement | 40% | 100% | |
| Not Right First Time (parts per million) | 13000 | 7200 | ||
| Automotive | Delivery Scedule Achievement | 84% | 97% | |
| People Productivity (parts per operator hour) | 32 | 41 | ||
| Overall Equipment Effectiveness | 52% | 67% |
Benefits to a Supply Chain
| Activity Sector | Measure | Before | After | |
|---|---|---|---|---|
| Aerospace | Supplier Not Right First Time (ppm) | 1500 | 750 | |
| Delivery Schedule Achievement | 75% | 100% | ||
| Financial savings estimate | > £1.5m | |||
| Delivery Schedule Achievement | 5% aprx. | 50% + | ||
| Delivery Schedule Achievement | 51% | 73% |
Testimonials
Working in Partnership with Industry Forum is enabling Rolls-Royce to develop a standard methodology for creating a successful capable supply chain for the 21st century.
Our whole supply chain group improved in OTIF from 75% to 100% and delivered quality from 1500ppm to 750ppm
Thales and up to 10 key suppliers worked together as a team to improve performance across the supply chain. Under Industry Forum guidance the approach was well prepared, meticulously planned and executed in a timely and effective manner. Their 'can do' attitude encouraged the team to achieve group savings in excess of £1.5M and 100% delivery to the end customer.
