Supplier Development Program
As competition with foreign firms heats up and the global marketplace has become
more competitive, Tier I and II Suppliers to the OEMs have spent considerable time
and resources examining and improving their internal operations through ISO, LEAN,
Six Sigma and other continual improvement initiatives. While the gains have been
substantial, much of the "low hanging fruit" has been discovered and much more aggressive
efforts will be needed to continue to produce superior product while facing downward
pricing pressure from the OEMs. One important area of additional savings that has
not been fully explored by most suppliers is their own supply base. The additional
savings to be found in the supply-chain can be enormous. A typical Tier 1 supplier
has 140 suppliers! If each supplier yields savings for them of $200,000 an additional
$28 million can be removed from the cost of the products while producing a higher
quality product. The Omnex Supplier Development Program is offered in both an outsourced
offering or as a standard consulting engagement. In the first approach, you are
able to outsource the entire supplier management program to Omnex. Alternatively,
Omnex will build a supplier management program for you and train your personnel
on how to manage the program on an ongoing basis.
The Omnex Supplier Development Program
The Omnex Supplier Development Program focuses your supplier management efforts
in the following essential functions:
- Supplier Metrics Management
- Supplier Assessment/Operational Analysis and Improvement
- New Product Development Support and PPAP
- Problem Solving
Supplier Metrics Management
Supplier data must be collected and evaluated in the areas of cost, quality (PPM),
delivery (ship on-time, premium freight), responsiveness, communication and other
parameters important to the customer. Omnex will assist you in gathering, organizing
and analyzing this data to create the benchmarking necessary to assess your supply
chain. We will help you identify the 20% of the suppliers causing most of the problems
so they may be identified and assessed for business management system weaknesses
that will require corrective action.
Supplier Assessment/Operational Analysis
Omnex will assist you in conducting an onsite assessment of the problematic suppliers
to determine their weaknesses and to recommend what improvement plan needs to be
put in place. Omnex will also conduct (or train you to conduct), ongoing monitoring
of your supply chain to ensure that good suppliers stay strong and to assess the
improvement plans of troubled suppliers.
New Product Development Support and PPAP
Based on the metrics data analysis and a risk assessment, Omnex will assist you
in identifying suppliers best suited for new product launches. High-risk suppliers
that you do use for a product launch need to be identified and provided additional
assistance to ensure the success of the new programs. Omnex will also assist you
in evaluating the PPAP documents for each supplier involved in the program launch.
Omnex will provide your personnel with advanced problem solving methodologies to
ensure effective corrective and preventive actions.
Which Solution Should I Choose?
For most companies, the most cost-effective choice would be to outsource the supplier
management process to Omnex. With the ability to leverage its global resources and
advanced web technologies, Omnex can manage the process at a typical savings of
40% over self-managed programs. However, we understand that certain of our customers
may want to manage the process internally, while you will not see the immediate
savings that the Omnex managed program produces, you will still see the overall
costs reduced as you implement the Omnex Supplier Development Program.
This approach shows how to utilize resources on troubled suppliers before they have
serious problems; what methodologies work best to remedy quality or delivery problems
with your supply base and what methodologies to employ if you discover new product
development problems. In addition, Omnex uses the most advanced operational assessment
and computer based electronic tools and solutions.
How Do I Get Started?
In either solution, Omnex needs to perform a Supplier Development Program Analysis
to understand the current supplier management processes. Deliverables will include
a study of the current process, proposal for future supplier management and identification
of immediate and future cost savings. It will also include an implementation plan
on how the organization should proceed with Omnex for the additional cost savings.
For additional Information, please contact:
315 E. Eisenhower Parkway, Suite 214
Ann Arbor, Michigan 48108
Website : http://www.omnex.com