Nowadays, suppliers, subcontractors and (logistics and technical) service providers all play an important role in the ultimate creation of value for the customer. Reason enough to pay good attention to the decisions concerning what to outsource and what to keep in-house, who to outsource to and which supplier to contract, and how to shape the contractual but also operational relationship.
This, however, is not where organizations should stop their efforts to create more value together with their suppliers. Massive value is hidden in the further integration of suppliers into the organization’s value stream, for instance by extending just-in-time and pull flow up to the supply base and the company’s subcontractors. Dumontis can help you in this by working on milk runs, returnable packaging, rack jobbing and VMI. We help reducing supplier lead times, increasing delivery frequency and delivery reliability. And we can assist in setting up multi-level planning with key suppliers.
We can assist in improving supplier quality through Advanced Product Quality Planning (APQP) and Production Part Approval Process (PPAP) and by assisting key suppliers and subcontractors in developing their own continual improvement capabilities. Like Lean, TPM and Six Sigma assist companies in improving their own performance, they can also help significantly raising the performance level of the supply base. This will reduce quality defects, improve delivery, raise productivity and reduce cost.
We can assist in setting up and accompanying such improvement initiatives with key suppliers, developing supplier groups (jishuken) and the creation of Value Engineering (VE) and Supplier Development Teams (SDTs) within your own organziation.
Dumontis can furthermore help in setting up supplier relationships, proper supplier protocols and profit sharing schemes.