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ties and articulate throughout the anization. ? Translate business unit strategies into supply chain strategies with quantifiable goals and objectives. ? Identify critical processes essential to the achievement of the business strategy and goals. ? Establish action plans detailing the steps required to achieve the goals and objectives. Best Practices Definitions and Strategies 21 ? Automotive suppliers define supply chain management differently. The activities prising automotive suppliers’ supply chains also differ dramatically. ? The majority of respondents were unsure whether supply chain strategies are aligned with business unit and corporate strategies. ? Companies with supply chain strategies place emphasis on performance measurement and supplier and customer facing issues, but little emphasis on defining action plans, budgets, investment requirements, and resources required to implement those plans. ? Companies assessed that they were best prepared to respond to global supply chain issues, but less capable of capturing supply chain costs, measuring performance, and selecting and integrating software solutions. Key Findings Definitions and Strategies 22 ? Suppliers supply chain executives roles and responsibilities vary, as does the level and department within the anization. ? Suppliers feel that senior executives may only partially understand the plexities of optimizing supply chain performance and are willing to make the required investments necessary to achieve optimal performance. Key Findings Organizational Responsibilities 23 ? Understand customers and segment based upon needs and preferences ? Analyze cost of service by customer ? Develop a channel strategy to target and serve different segments Foster A Leadership Driven Supply Chain Strategy Develop IT Strategy and Infrastructure Develop Supply Chain Structure Align Monitor Key Performance Indicators Assess Customer Needs Segments Understanding Expectations 24 Company’s Expectations of Self Understanding Expectations Question 7 Suppliers OEMs ? 100% ontime delivery ? Cost improvements ? Define, Track, and Reduce Supply Chain costs ? Reduce purchased product/supplier costs ? Reduce parts cost every model year ? Reduce Inventory and obsolescence ? Reduce premium freight and distribution costs ? Quality Improvements ? Integrate / leverage supplier capabilities and technologies for petitive advantage ? Improve PPM performance ? Technology ? Implement / upgrade EDI/ERP/WMS capabilities Expectations X X X X X X X X X X X X 25 Understanding Expectations Questions 8 9 Expectations of Customers Expectations of Suppliers Expectations of Suppliers Understanding Expectations Expectations of OEM 26 Expectations of Customers Questions 8 9 ? To be rewarded for superior performance, to be dealt with as a partner, to be paid on time ? Stable orders (subjective), munication of key issues affecting suppliers ? Reduced number of design alterations during design development, improved forecast stability and accuracy, risk sharing of raw materials cost exposure Understanding Expectations Expectations of Customers Expectations of Customers ? Schedule stability, recognize our full value, share technology expectations ? Sharing program or cycle plans information, fairness in customer supplier relations, providing business opportunities to support ? Larger orders, limited customization, quality forecasts, EDI ordering Expectations of OEM (Supplier) ? To meet or improve all quality targets, to meet or improve all cost targets, to meet or improve all delivery targets. ? Stable production scheduling, optimal capacity planning, integrate supply chain into our business ? Consistent, accurate munications, share benefits of continuous improvements, respect supplier technology Expectations of OEM (OEM) Expectations of OEM 27 Expectations of Suppliers Questions 8 9 ? To be EDI capable stay current, to manage their suppliers to our requirements, to implement lean across their supply base ? Small lot delivery, ontime delivery, low ppm ? Cost reduction, improved performance, technological support ? Manage the supply chain to their benefit, invest in technology to their benefit, reduce our total acquisition cost ? 100% ontime delivery, cost petitive, short leadtimes ? Ongoing price reductions at 35% per year rate, flawless delivery and quality performance ? Competitive quoting, black box engineering design work, supply chain agreements Expectations of Suppliers Expectations of Suppliers (Supplier) Expectations of Suppliers (OEM) ? Improving new product development timing, to continue productivity improvement activities, to expand regressive replication of supply chain optimization philosophy. ? Be more integrated in our business process lean production practices, reduce lead times fast to market, inventory management ? Be aware of position in supply chain and municate, manage supply chain, not just supplier, continuously improve quality, cost, cycle time, human resource efficiency Understanding Expectations Expectations of Suppliers Expectations of Suppliers 28 ? Ensure that the management control structure facilitates crossfunctional support and munication within the anization. ? Actively solicit input from internal stakeholders at tactical, operational, and strategic levels within the anization. ? Establish mechanisms or forums for exchanging supply chain information with suppliers and customers. ? Refine management style to ensure strong trust and munication with supply chain partners. Best Practices