Supplier Relationship Management - CIPS minutes/FINAL … · Marketing and Training support...

Supplier Relationship Management • Unipart Expert Practices •

March 2013

An introduction

The Unipart Group Manufacturing Logistics Consulting

12,000 people

Operating in 100 countries

worldwide

5 principal divisions

Majority owned by

employees

Head-quartered in

Oxford

£1.1b turnover

• Showcase

• Enjoy

• Promote

• Learn

Webinar Objectives

• Unipart Supplier Relationship Management methodology

• How we decide which suppliers to include

• How we have implemented our methodology

• The benefits that we have generated

• Our lessons learnt – some do’s and don’t’s

Topics to Cover

Ten(d) To Zero

Copyright © 2010 Unipart Group Limited. All rights reserved

• The Unipart Group’s generic Supplier Relationship Management tool

for our strategic suppliers

• It has been adopted across the group, throughout every division and

has been continuously developed over 20 years

• It supports Principle 8 of the Unipart Way….

– “We build constructive and challenging long term relationships through

Ten(d) to Zero”.

• Mission Statement….

– “To develop and continuously improve the Group’s partnership with its

suppliers, by jointly growing our business through removing waste,

improving quality and meeting customer requirements profitably in the

shortest possible time”.

Background to Ten(d) to Zero


• Ten(d) To Zero is a structured and formalised framework and process designed to support improvement and sustainability with our suppliers to better meet our customers’ expectations

• It identifies the ten key elements in the relationship with our suppliers which most appropriately supports optimum customer satisfaction - each element has ten points of measurement with defined criteria

• Each element has a standard structure including Objective, Approach, Definitions, Performance Levels and Guidelines for scoring

• By working together with our suppliers, we can start to move from an unacceptable score of ten towards a best in class score of zero

• Each TTZ review delivers a plan with agreed actions, timings and method for progression

What is Ten(d) to Zero


To offer continuous improvement to members of our supply chain, in particular, our

customers

To remove ambiguity from

expectations and facilitate emotion free discussion

To provide a framework for

discussing performance

To provide a framework to

recognise performance

To identify and implement

appropriate cost ‘out’ opportunities

To strengthen business

relationships with our preferred

suppliers

Objectives and Benefits of Ten(d) to Zero


To go from this to this

Fewer

Opportunities

Taken

More

Performance

Problems

More

Opportunities

Taken

Fewer

Performance

Problems

To Summarise…. We use Ten(d) to Zero to


The process is used to structure the approach and confirms whether actions are having the desired effect

Using the

Manual, Identify

the Supplier’s

Current

situation and

the Start Status

for All Elements

Set Programme

Durations and

Target Status

for Each

Element

Agree Strategy

to Achieve

Target Status

Implement

Action Plans

Make and

Agree Specific

Action Plans

Reflect on

Result

Evaluate Actual

Impact vs

Expected

Impact

Cycle Repeats

Until Target is

Achieved

Plan

Do

Check

Action

Identify

Strategic

Suppliers

Once Target is

Achieved, Set

New Target

and Repeat

Introducing New Suppliers Continuous Improvement with Existing Suppliers

How we approach Ten(d) to Zero


• Strategic suppliers should fall into one of the following 3 criteria;

– Spend or cost importance

For example top suppliers equating to 80% spend

– Criticality of supply and / or risk to supply

Key components or services required to allow sale of final product to the

end customer or a supplier that is known to have financial difficulties

– Innovators

Those suppliers that add value to their customer through introducing

new technologies or products to aid the value of the product / service or

the relationship

• Allows strategic thinking and resources to be focussed, whilst

maximising business benefit

Segmenting the supply base


Quality

Logistics

Commercial

Marketing

Engineering

Supply chain

Quality

Logistics

Commercial

Marketing

Engineering

Supply chain

Oversee

TTZ

Programme

Including

Overall

Facilitation

and

Escalation

of

Concerns

Formal Communication Route at TTZ Review Meetings

and Formal Escalation of Issues

Informal Communication Routes for Day to Day Business

Unipart

Unipart

Facilitator (Procurement)

Supplier

Facilitator

Supplier

How the relationship functions


Position & Launch

TTZ Programme

Work together

to problem

solve and

manage

performance

improvements

Initiate &

manage own

problem

solving

Sustain

performance

levels

Use TTZ

approach to

identify new

opportunities &

challenges

duration is case by case

Customer-Supplier Relationship Growth

+

Supplier Self Reliance

This helps the supplier to understand how their journey will evolve and where they are currently positioned

The journey for our suppliers


Zero Waste

Zero Quality Defects

Zero Logistics Non Conformance

Zero Supply Chain Impact

Zero Transaction Costs

Zero Lead Time

Zero Range Gaps

Each Division selects the 10 most appropriate for their business

needs and that of their suppliers

Some element examples


0

1

2

3

4

5

6

7

8

9

10

Overall

Range/New product gaps

Availability

Lead time

Inventory

Commercial disadvantageTransaction costs

Marketing and Training support

Transport costs

Obsolescence

Warranty

Win Win - Best practice is a zero score

Element example progress


• 47% improvement in supplier delivery performance

• 40% reduction in safety stocks

• 25% reduction in non value adding activities

• Significant time savings for suppliers in managing the Unipart account

• Improved service levels to the end customer

What we’ve achieved


What Went Well….

• Executive Sponsorship with internal consulting support;

• Formal Project Management approach ensured delivery of the key objectives;

• Formal training sessions helped the division to ‘come up to speed’ quickly;

• Help from TTZ Champions in other divisions to support the supplier event;

• The event was rehearsed a number of times;

• All documentation and templates are being rolled out across the Group.

What Didn’t Go So Well….

• Stakeholder engagement was difficult despite CEO Sponsorship – availability of time and number of conflicting priorities;

• Ensuring the material was wholly aligned to the division was difficult as team members from other parts of the company were doing the work.

Lessons learnt


Do….

• Engage with the suppliers selected early in the process to get their buy-in and input

• Ensure the programme plan includes handing over the implemented SRM scheme to the ‘business as usual’

• Audit the scheme once it is part of ‘business as usual’ to ensure the drive to continuously improve is sustained

• Run lessons learnt sessions so that the process of bringing new suppliers into the scheme is more smooth

• Ensure every stage is planned in detail and communicated well to the stakeholders

Don’t….

• Be tempted to include too many suppliers in the initial stages of setting up the programme

• Just measure metrics – take action!

• Forget to engage with internal stakeholders – they are equally important

• Delay the programme waiting for a system solution – most schemes can be initiated with simple reporting functions using existing reports or Excel!

• Be afraid to start with a small number of key metrics that you can measure, with plans to enhance the number of metrics and their sophistication in the future

Implementation do’s and don’t’s


Contact details for questions and queries

Paula Stevenson

E-mail: [email protected]

Tel: +44 (0) 7990 797962

Paul Simlett


Tel: +44 (0) 7841 699250

Melanie Halstead


Tel: +44 (0) 7977 153166

mailto:[email protected]



Supplier Relationship Management - CIPS minutes/FINAL … · Marketing and Training support...

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