Strategic Supplier Development in Manufacturing

Strategic supplier development – raising the bar in manufacturing
 
MBN USA staff report

How do the small become mighty in a world being changed by globalization and the demands of the multinational corporations competing in it? For the minority, small and midsize manufacturer, the National Minority Manufacturing Institute has the answer through its Community of Practice called the Corporate Mentoring Program, a resource for corporations to develop MSMMs as Strategic Suppliers in global supply chains.

“Small and midsize manufacturers (SMMs) are the driving force in the world economy,” said David Burton, founder and president of NMMI. The National
Association of Manufacturers highlights the strategic significance of MSMMs in its “Annual Report of Manufacturers” that indicates that in the United States alone, small and midsize manufacturers employ more than half of all workers, generate two-thirds of all new private-sector jobs and produce more than half of the country’s total economic output. Burton contends, “SMMs have proven to be inventive, adaptable and receptive to customers’ needs. However, despite their ingenuity and determination most SMMs — and especially minority SMMs — operate with fewer resources while the global economy is challenging them to operate at value-added levels with the same, if not more agility than their much larger corporate customer.”

“For certain, globalization has changed manufacturing forever,” Burton said. “Some corporations are being viewed as lessening or even abandoning their support of domestic suppliers, including the MSMMs, in lieu of focusing on cost-saving international supply base expansion.”   
  
Burton went on to say that “… in reality, product life cycles are shrinking, consumer demographics are shifting, consumers are behaving less predictably, and economic events ripple through markets very quickly. For survival, corporations competing globally must be prepared to react to — and preferably predict — change.” He said, “Their failure to do so can result in costly write-offs, stock-outs and loss of market share.”

Burton said that “since suppliers are expected to bear the brunt of cost reductions and innovation while increasing product quality and capacity levels in this turbulent environment, their survival demands new approaches, new tools, stakeholder collaboration and new resources. For their survival, corporations’ selection of suppliers becomes a strategic decision based on the supplier’s measured risk and/or contribution to its key business objectives such as: (1) Reduce overall supply chain cost; (2) Increase customer service; (3) Enhance product quality; and (4) Increase profit. For corporations to compete globally, they must have a supply base that is as competitive, and one that mirrors its diverse consumer base. Corporations and suppliers must thus be in lock step in order to accomplish mutual supply chain goals.” Burton said, “And this is where NMMI’s Corporate Mentoring Program or CMP comes in as an emerging best practice resource that corporations can embrace to effectively integrate MSMMs into their supply chains and sustain more jobs in the U.S.”

Burton added that performance complacency and not measuring what one manages could lead to the demise of a supplier.  

For suppliers, the objective of NMMI’s Corporate Mentoring Program is threefold: (1) Identify the gap between a MSMM’s performance and its corporate customers’ performance standards — and its customers’ industry groups’ supplier performance requirements — in the core areas of demand management, inventory management, supply planning, order fulfillment and sales and operations planning; (2) Assist the MSMM in the development of plant operations in the areas of manufacturing information systems; modeling and simulation; manufacturing processes and equipment; enterprise management and technology integration; and legal and regulatory; and (3) Assist the MSMM’s in the efficient management and alignment of their own supply chain.

The CMP process systematically engages the corporation to understand their supply-chain management performance objectives, their supplier performance requirements and assemblage of a corporate team consisting of the diversity, sourcing and supply management function. This information is factored into NMMI’s online and in-plant assessment tools to assist in mentoring the MSMM.

The CMP’s engagement with MSMMs begins with their participation in a joint NMMI and Supply Chain Council workshop, which guides each participating MSMM in developing a customized report on their selected metrics and prioritized supply chain attributes, based on validated benchmarking data maintained by American Productivity & Quality Center. The customized performance benchmarking report allows participating MSMMs to assess existing operation to determine the performance gaps between actual functioning and performance corresponding to desired strategic positioning using validated industry specific performance data. Information from the workshop is used by NMMI’s industrial and process engineers in online surveys and in-plant assessment and improvement plan implementation assistance visits. In the continuous improvement process, selected metrics are used by MSMMs in their performance scorecards and displayed via an online-managed digital dashboard viewable by corporations.

Capacity development support is addressed by NMMI through MSMM mergers and acquisitions assistance, foreign trade zones development, teaming with low-cost-country-sourcing small and midsize suppliers, vendor managed inventory and other efforts. Burton said NMMI wants to be positioned as the “go-to” organization for corporations seeking value-added MSMMs for sourcing opportunities. There are about 18 MSMMs currently enrolled in or scheduled to begin the CMP process. NMMI’s goal is to have 300 MSMMs complete the 24-36 months CMP process by 2012. Corporate members will be able to access world-class MSMMs who just happen to be minority via an online portal. MSMMs will be able to substantially reduce their marketing cost since their performance capabilities and capacities as high valued-added suppliers will be visibly available. The online performance portal is designed to be a win-win for everybody. In 2008, NMMI will coordinate efforts with state governments and economic development organizations such as National Minority Supplier Development Council regional councils and Women’s Business Enterprise National Council for intake of MBEs and WBEs respectively.

 The springboard for NMMI’s success is the sustained involvement and support of its founding corporate members including Procter & Gamble, International Truck & Engine, McCormick, Grainger, Toyota, Cummins, Johnson and Johnson, Merck and Microsoft with others committed to joining them in 2008.

“To them, we owe everything, and in 2008 we hope to triple our corporate membership base and market the program to state governments,” Burton said.

Gordon F. Fykes, director of diversity procurement, Cummins, Inc., one of NMMI’s corporate members, said, “I expect NMMI to radically change how we source all suppliers, not just minority suppliers.”

Burton added, “You can’t wish it to happen. In manufacturing, you have to make it happen, collaborate with others, and raise the bar. You cannot do it by yourself.”

To learn more about this paradigm changing initiative, NMMI invites corporations and suppliers to attend its 2008 National Education and Training Conference: “Beyond Diversity: Supplier Development-Raising the Bar in  Manufacturing” in Tucson, Ariz., Sept. 8-10, 2008 or visit the Web site at www.2008Beyond
Diversity.org. or contact David Burton at (301) 998-6185.

Q&A with Frito-Lay’s Group Manager Supplier Diversity Jean Lacefield

WE: When did Frito-Lay form its supplier diversity program?

JL: Frito-Lay,Inc.formed its supplier diversity program in 1983 when our senior leadership executed their vision of improvingthe economic wealth of the ethnic business community. Foralmost a quarter of a century,we remain committed to inspiringwell being in our suppliers and the communities we serve. Read more

VIDEO - New Infinity G37 Coupe Test Drive

Drive along with Randy Fieur, Regional Product Manager for Infinity Product Planning. While test driving with www.Car-Data.com Randy explains the new Infinity G models, North American market plans, and this particular test drive.

Watch the video…

Infiniti’s Grand Tourer, the G37 Sby Chris Jackson - www.car-data.com

I’m too young to have ever met any of the original “grand touring” cars - those four-place two-doors made legendary by Ferrari, Aston Martin and Maserati in the 1960s. I’ve never even sat in an Aston DB5 or a Ferrari Daytona. Even so, I’m astute enough to recognize the concept when I see it, and the new Infiniti G37 is as powerful an embodiment of this respected market niche as anything available today.The G37 certainly matches the description of a grand touring car: it’s a longer, lower and wider four-seat, two-door coupe. Add to that equation an ultra-responsive, great-sounding V6 engine with over 330 horsepower and a comfortable yet athletic suspension, and you just might have road-trip magic. To check it out, we took the G37 on a quick, 2000-mile road trip.

You wouldn’t know to look at it, but the G37 is packing over 330 horsepower. Like a proper grand tourer, it doesn’t shout its performance capabilities to the world like a muscle car. Hidden beneath its smooth lines is a 3.7 liter V6 - as if it weren’t evident by the name change, the G37 gets a larger engine than its four-door counterpart the G35, for the first time. The 3.7 features Infiniti’s Variable Valve Event and Lift (VVEL) system that changes valve timing and lift to improve performance and efficiency. Power’s immediate; drop the pedal at almost any engine speed and the G37 responds eagerly. Electronic throttle control only speeds the engine’s response. On surface streets, the G37 rips off impressive zero-to-the-speed-limit times with ease; on the freeway, it’s a relaxed cruiser that’s ready to accelerate with an instant’s notice, and it sounds great too. The G37 will roll with V8-powered cars easily, while beating their fuel economy numbers. Like in its sedan counterpart, the 3.7’s power comes on with a steadily building rush, and it never feels wound up or wrung out even at high revs. The six-speed manual transmission makes driving the G37 a heck of a lot of fun as well. A paddle-shifter-equipped five-speed automatic is available, as is a launch-enhancing limited-slip rear differential.

The straight-line performance is there, and the G37 lives up to the grand-touring designation on twisty roads as well. It’s too heavy to be an honest sports car, but with a double-wishbone suspension up front and a multi-link rear it was happy to demonstrate grin-inducing stability and grip on the on-ramps and backroads I found myself exploring. Vehicle Dynamic Control (VDC) stability control is standard equipment, and a new, exclusive-to-Infiniti four-wheel active steering system is available. This system can change the steering gear ratios and move the rear lower links to provide an additional measure of stability and responsiveness in the curves. The controls strike an excellent balance between comfort and communication; this car is easy to drive all day.

It’s not a proper grand tourer if it won’t impress the folks waiting in line at your favorite resort, of course. Here, the G37 doesn’t disappoint, with lines that look right at home parked next to any Jaguar or Lexus at two-thirds the price. The catlike silhouette dips handsomely at both ends, looking at a glance like a hatchback, but the G37 has a proper trunk. Angry-looking headlights are pulled back tight to the fenders, and large lower air intakes lurk beneath an Infiniti family grille. The Adaptive Front Lighting System, whose headlights turn with the front wheels, is available. The G37 looks finished and polished. The taillights are flush-mounted LED units, and large dual exhausts with air diffusers finish the rear end. It’s aerodynamically correct too; when equipped with the optional rear spoiler, the G37 has zero lift at the rear.

The G37’s handsome interior layout avoids the sin of too much plastic and also avoids looking too much like a sports car. Brushed aluminum is accented with polished trim on the dash and door panels, and the car feels modern and purposeful. If you want to go old-school, wood trim is also available. It’s not quite as inviting as it looks though, I had a hard time getting comfortable in the driver’s seat on my long drive, and the cabin is short on small-item space. Travel necessities like maps, notepads and cell phone had to be piled in the passenger seat once the tiny console and door pockets filled up.

Once on the road, the G37’s excellent driving dynamics and Bose sound system made these things seem less significant, however. Standard equipment includes Infiniti’s Intelligent Key with a pushbutton start. The available Intelligent Cruise Control, Bluetooth connectivity, backup camera and navigation system make road-tripping that much more effortless. The navigation system’s touch screen controls could be more intuitive, but overall the G37 is a pleasing travel companion.

Headroom in the back seat is less than optimal, but there is enough legroom for the G37 to be called a proper 2+2, and enough luggage space for it to really be a grand tourer. In fact, the only thing keeping the G37 from true grand tourer status may be the price. Unlike the Ferraris and Jaguars that have traditionally held the distinction, this slick Infiniti stickers for less than $50,000 - considerably less, in fact. Starting MSRP for the G37 is a comparatively reasonable $34,250, with the sportier 6MT manual transmission-equipped version coming in at $35,550.

Specifications:

All specs are for the 2008 Infiniti G37 S
Length: 183.1 in.
Width: 71.8 in.
Height: 54.8 in.
Wheelbase: 112.2 in.
Curb weight: 3668 lb.
Cargo space: 7.4 cu.ft.
Base price: $34,250
Engine: 3.7 liter DOHC 24-valve V6
Drivetrain: six-speed manual transmission, rear-wheel drive
Horsepower: 330 @ 7000
Torque: 270 @ 5200
Fuel capacity: 20.0 gal.
Est. mileage: 17/26

Tuck B-School and IBM (Part 1): When the Minority Becomes Majority

Special thanks to Dr. Leonard Greenhalgh (Tuck School of Business) and Michael Robinson (IBM).  In Part 1, they discuss economic implications derived from when the minority becomes the majority.

 Click here to watch the video…

Name This Blog!

Our “President’s Corner” blog needs a new name and we’d like your help. We need your help in naming this blog section. “President’s Corner” is a little stuffy so we want to know what you think. Please submit your suggestions. For your time, we will add you to our Partnership Network for FREE.

Guidelines: Well, we are very open to any ideas, but keep in mind it should be relevant to our magazines (MBN USA and MBN Texas) and/or blogging in general. For instance, the new name for our Women’s Enterprise sites is WEblog2.

Thanks in advance for your suggestions and help!

Tim

June 16-19 Diversity NXT Hosts NXTComm in Las Vegas

Please click here to see all the details…

Digital Marketing: Targeting Gen Y

Making Sense of Gen Y Media Consumption

Forrester Research recently reported on media consumption among Gen-Y’ers (18-27 year-olds). This group, not very surprisingly, spends more time online than watching TV. In fact, according to the report, they “Spend less time watching television today than they did in 2004.” Reportedly, they spend more time playing video games, watching DVDs and checking out Web and mobile video content than the general population.

To make sense of it all in the marketing light, Forrester offers a few tips for marketers:

Find consumers in their preferred media channels. Are your consumers online or offline? How are they spending their time online? What channels do they prefer? This media profile will answer those questions with a view of today and a trend line showing how behavior has changed in the past four years.

Prioritize media channels and brands for advertising….One simple way to start is to compare your advertising spend against the time that your target customers spend with each channel and brand. For example, Gen Y’ers generally are more likely to be found on MySpace than Facebook, but perhaps your target market is more likely to use Facebook. Or it may be that your multichannel sports fanatic customer actually spends more time online than watching television!

IBM’s Tom Trotter (Retired) on MWBEs and Corporate America

Tom Trotter, a true supply chain diversity pioneer, talks with us about MWBEs and strategies to grow their businesses, including accessibility to Corporate America through networking.

Toyota: Innovations and the Next Level

Moneta Stephens with Toyota talks about innovation and taking your company to the next level

Gary Muddyman: China and business opportunities for small businesses in the US

Garry Muddyman talks about small business opportunities with China.

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