Supply Chain Planning

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MANUFACTURING BASICS & BEST PRACTICES BULLETIN

Now serving over 9235 subscribers

Competitive Knowledge for Manufacturing People 

Supply Chain Planning
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CONTINUING OUR PAST PRACTICE, HERE'S
ANOTHER SPECIAL OFFER FOR SUBSCRIBERS ONLY

If you and your company are striving to optimize any 
of the following::

* MRP stability and reliability
* Supplier selection and development
* Material quality and on-time deliveries 
* ERP and Lean manufacturing success
* Customer responsiveness and satisfaction
* Product introduction and profit margins


A good training investment would be to consider our 
e-Tutorial, "Kaizen Based Supply Chain Management." 

During this week only, MB&BP Subscribers can purchase 
this tutorial at a 40% discount from our retail price 
of $495.00; or for $295.00. Now that's a savings of 
$200 from retail and many more hundreds of dollars 
less than attending a relevant seminar. (And unlike a 
seminar, your tutorial will always be available for 
future reviews) Now that's an offer you shouldn't 
pass up.

For details, check it out at:

http://bbasicsllc.com/scm.spl.htm

Do it today because the offer ends: Friday the 10th
and after this week you won't see this special again 
for another year.

Supply Chain Planning

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June 6, 2005

Hi [[firstname]], welcome back. 

"What is the key to getting the RIGHT parts in the 
RIGHT quantity to the RIGHT place at the RIGHT time 
and for the RIGHT price?" 

If you answered, "Get the best suppliers," you are 
correct. But we all know that's easy to say and very 
hard to accomplish. 

In my experience the best approach to "Get the best 
suppliers," is to implement a Supply Chain Management 
initiative that has SUPPLIER DEVELOPMENT at the center 
of its program.

If your company is having trouble getting the RIGHT 
parts in the RIGHT quantity to the RIGHT place at 
the RIGHT time and for the RIGHT price, don't pass up
reading this week's MB&BP Bulletin, "Supply Chain 
Management."

Have a nice day, keep the faith, and stay connected.

Bill Gaw
Business Basics, LLC
bg@bbasicsllc.com
760-945-5596

Supply Chain Planning

=============================================
BUSINESS BASICS & BEST PRACTICES BULLETIN

Now serving 9235 subscribers

Competitive Knowledge for Manufacturing People 
=============================================

SUPPLY CHAIN MANAGEMENT

Companies will never achieve their full growth and 
profit potential, let alone gain the benefits of their 
supply chain, as long as business leaders continue to 
talk about value-added supplier partnerships while 
continuing to treat their suppliers as adversaries.

NON-VALUE-ADDED ACTIVITIES

Material handling and inventory storage are two of 
manufacturing's high cost, non-value-added activities. 
The elimination of the stock room, as it is known 
today, should be a strategic objective of all 
manufacturers. 

Moving materials to their point-of-use is not a new 
concept, the auto industry has done it from its 
beginning and all industries have had success with 
point-of-use, low cost hardware. 

SUPPLY CHAIN DEVELOPMENT

Supply chain development is the key to point-of-use 
logistics, and it's time to realize that there is much 
more to increasing supplier contribution to gross 
profits than simply placing purchase orders with the 
lowest price bidder. "Strategic Outsourcing" that 
focuses on getting the right materials to the right 
place at the right time must replace "beating-up" on 
suppliers for price reduction alone. 

A CASE IN POINT

A manufacturer of electronic component test equipment, 
in response to its need to increase factory floor space 
to build a new multifunction tester, decided to convert 
stockroom space into a production area. It was agreed 
that NONE of the new tester parts would enter the 
remaining stockroom and that ALL COMMON PARTS 
would be relocated to their using production areas as 
"point-of-use" inventory. 

The key to making this project a success was the 
development of a powerful supplier support network 
that provided timely and innovative "point-of-use" 
logistical support. 

High communications integrity, scheduling flexibility/ 
responsiveness, superior quality, special materials 
transportation/storage hardware and a positive kaizen
mindset were some of the characteristics of the 
developed relationship. 

Three years after the start of the project, this 
Manufacturer was a market leader and most of the 
credit goes to their supplier development team and 
the powerful supplier support network that it helped 
develop.

VALUE-ADDED SUPPLIERS

In today's competitive business environment, many 
manufacturing companies are turning to value-added 
supplier partnerships to achieve the material 
availability performance that is a requisite to 
successful point-of-use logistics. 

When a company forms a partnership that performs one 
of the links in the supply chain, both stand to 
benefit from the other's success. 

The power of supplier partnerships is undeniable. 
To a great extent, they have the best of both worlds: 
the coordination and scale associated with large 
companies and the flexibility, creativity and low 
overhead usually found in small companies. 

Suppliers have knowledge and insight but aren't burdened 
with guidelines from a distant headquarters. They don't 
have long forms to fill out and weekly reports to render 
and can act promptly, without having to consult a thick 
manual of standard operation procedures. 

In an increasing number of industries, value-added 
suppliers are proving to be fiercely competitive – 
delivering high quality, competitively priced 
materials to precise buyer schedule requirements. 

PARTNERSHIP RELATIONSHIP

An excellent way of establishing the partnership 
relationship is to treat each other as an extension of 
one's business. The value-added supplier should look to 
his partner for services such as special procurement 
help on capital equipment and training needs and maybe 
some process engineering or quality engineering 
assistance. 

The buying partner, on the other hand, should look to 
the supplier partner for product development input, 
cost containment ideas and high quality parts/ 
components/assemblies delivered to the right place 
at the right time. 

Most business leaders underestimate the depth and 
breadth of business skills that are required to 
initiate and nurture an effective supply chain program. 
Usually, these leaders hold suppliers at arm's length 
and struggle to keep any economic gains to themselves. 

In fact, organizations often try to weaken a supplier 
to ensure their own control of profits. This of course 
is ridiculous and is the first obstacle to be overcome 
if point-of-use logistics is to be successfully 
implemented - for without a strong supplier network 
there can be no point-of-use logistics.

SUPPLY CHAIN EXCELLENCE

Business people in pursuit of supply chain excellence 
should be advocates of: 1) business integrity, 2) day- 
to-day supplier cooperation, 3) free exchange of 
information, 4) responsive decision-making and 
5) supplier profit sharing. 

Supplier development and strategic outsourcing are 
requisites for success. They both require a "from the 
top down" commitment and investment to educate and 
train a team of professionals that can make it happen. 

Supply Chain Planning

=============================================
=============================================

A SPECIAL OFFER FOR MB&BP BULLETIN SUBSCRIBERS

During this week only, MB&BP Subscribers can purchase 
their tutorial at a 40% discount from our retail price 
of $495.00; or for $295.00. Now that's a savings of 
$200 from retail and many more hundreds of dollars 
less than attending a relevant seminar. (And unlike a 
seminar, your tutorial will always be available for 
future reviews.) Now that's an offer you shouldn't 
pass up.

You can check it out at:

http://bbasicsllc.com/scm.spl.htm

Do it today because the offer ends: Friday the 10th
and after this week you won't see this special again 
for another year.

==========================================
==========================================

You are welcomed to print and share this bulletin with 
your manufacturing teams, peers and upper management ... 
better yet, have them signup for their own copy at:

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With the escalating spam-wars, it's also a good idea 
to WHITELIST our bulletin mailing domain via your 
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This will help guarantee that your bulletin is never 
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==========================================

Business Basics, LLC
6003 Dassia Way, Oceanside, CA 92056
West Coast: 760-945-5596

Manufacturing Knowledge you'll not find at offsite 
seminars nor in the books at Amazon.com

MRP - Lean Manufacturing - Balanced Scorecard 
ISO 9000:2000 - Strategic Planning - Supply Chain 
Management - MRP Vs Lean Exercises - Kaizen Blitz 
Lean Six Sigma - Value Stream Mapping

All at one Website: http://bbasicsllc.com

==========================================

Supply Chain Planning

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This will help guarantee that your bulletin is never deleted unexpectedly.

Manufacturing Knowledge you’ll not find at offsite 
seminars nor in the books at Amazon.com

Lean Manufacturing - Balanced Scorecard 
ISO 9000:2000 - Strategic Planning - Supply Chain 
Management - MRP Vs Lean Exercises - Kaizen Blitz 
Lean Six Sigma - Value Stream Mapping

All at one Website: Good Manufacturing Practices

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