Supply Chain Management Amy Gress, Sr. Commodity Manager

Supply Chain Management What do YOU think it is?

How Many Times…

Old School Sales/Marketing Fulfilled Demand! Purchasing Production Distribution

MS788: Supply Chain Management The Supply Chain is: The sequence of activities that create and deliver of a good or service from raw material to end consumer, and back for disposal at the end of the good's life cycle. Supply Chain Management is: The design and management of seamless, value-added processes across organizational boundaries to meet the real needs of the end customer. The development and integration of people and technical resources are critical to successful supply chain integration (The Institute for Supply Management). The Goal of Supply Chain Management is: To evolve a company’s supply chain into an optimally efficient, customer- satisfying process, where the effectiveness of the whole supply chain is more important than the effectiveness of each individual department or group in the supply chain.

Supply Chain Management Sales and Operations (S&OP): Review of the last three months of actual sales and on-hand inventory targets to assess the next 6 months of forecast and purchasing plans. Who Attends? Sales, Operation, Sourcing, Engineering, Accounting, Finance, Customer Service, Logistics, Distribution and Executive Staff the effectiveness of the whole supply chain is more important than the effectiveness of each individual department Design Teams: The process of creating or refreshing new features or products that will increase our end-customer’s effectiveness in the field Who Serves? Marketing, Operations, Sourcing, Engineering, Accounting, Finance, Customer Service, Logistics, Distribution with Review by Executive Staff (PDAC: Presidents Design Approval Committee) Development of New Source of Supply: The integration of new suppliers to the Ridge Tool. Who Cares? Marketing, Operations, Sourcing, Engineering, Accounting, Finance, Customer Service, Logistics, Distribution and Executive Staff

the effectiveness of the whole supply chain is more important than the effectiveness of each individual department Supply Chain Management Supplier Relationships Advocacy role for the supplier and within the company Tools: Supplier Review/Balanced Assessment Tool, Operations Contract Negotiations: Currently working on 3 worth over $5,000,000 with an approximate 10% savings Show long-term commitment, provide performance standards, control inflation fairly and ensure continual supply of parts Tools: Global Contract Management System, Word Resourcing parts to Strategically-aligned Suppliers Global resourcing with colleagues in Europe and Asia Domestic resourcing – reduction of Supply Base Complexity Tools: Reverse Auction, Master Contracts, Divisional Contacts, Sourcing Decision Tool

Supply Chain Management the effectiveness of the whole supply chain is more important than the effectiveness of each individual department Raw Commodity Pricing Tracking, forecasting and estimating financial impact to the company and our suppliers Tools: Inflation Model, Excel, Corporate Executive Monthly Telecons Develop Strategy Reviews Define Current State, Future State and Implementation Plan Tools: Supply Master, Trade Magazines, Engineering Make/Buy Analysis Determine cost advantage of both tracks Tools: Engineering, Cost Accounting, Logistic, Operations Tactical: Invoice problems, Engineering Changes, Update Purchase Orders,Line Shutdowns…

Supply Chain Management the effectiveness of the whole supply chain is more important than the effectiveness of each individual department Purchasing And Production Distribution Sales and Forecasting

Supply Chain Management the effectiveness of the whole supply chain is more important than the effectiveness of each individual department We Know: Production wants a start-up of March 2010 (at the earliest) Demand can be spiky without warning Quality is unforgiving Start-up Lead time with Quality Approved Parts: 10 to 12 weeks What We Didn’t Know: V.P. wants China source to run parts through a Reverse Auction Reverse Auction Prep: 2-4 weeks (internal) with 4 weeks external China resistant to Reverse Auction process

Supply Chain Management the effectiveness of the whole supply chain is more important than the effectiveness of each individual department What Can I Do to Make Myself (More) Marketable? Academics - Strong Build Your Skill Set – Excel, Word, PowerPoint Field Experience – Shadow if Uncertain Summer Intern, Co-op – Almost a Must. Behavior – Keep it Professional Social Networking Sites – Clean It Up… and keep it that way! Create an “Elevator Moment” resume Treat Getting a Job as Your Job Hone Skills In Communication Time Management Project Management