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SUPPLY CHAIN COUNCIL 1998 EUROPEAN CONFERENCE

SUPPLY CHAIN COUNCIL 1998 EUROPEAN CONFERENCE. Improved Relationships with Suppliers and Customers Eero Laak / Perlos 25-27 October 1998 Hotel Metropole, Brussels. SCC 1998 European Conference.

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SUPPLY CHAIN COUNCIL 1998 EUROPEAN CONFERENCE

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  1. SUPPLY CHAIN COUNCIL 1998 EUROPEAN CONFERENCE Improved Relationships with Suppliers and Customers Eero Laak / Perlos 25-27 October 1998 Hotel Metropole, Brussels

  2. SCC 1998 European Conference • One of Europe’s leading manufacturers of thermoplastics precision parts and assemblies, standard and customized electromechanical connectors, automatic assembly lines and injection molding tools • 11 plants in Finland, 1 plant in Washington UK, 1 plant in Fort Worth Texas USA • Main customers:Globally operating electronics-, telecommunication-, pharmaceutical- and automotive companies • Net Sales: 1997: 810 MFIM, Estimate 1998 over 1.100 MFIM • Personnel: 1997: 1400, 10/1998: 1800

  3. SCC 1998 European Conference • BUILDING, MAINTAINING AND IMPROVING CHAIN RELATIONSHIPS 1. HUMAN FACTOR - finding the right people - size of the organization - definition of key stakeholders STAKEHOLDER ANALYSIS • key persons from all parties to be analyzed • issues / concerns and influence strategy to be added to the matrix - this was a very essential part of this tool • information has been found to be very useful and VERY confidential and it can not be published for “outsiders”

  4. SCC 1998 European Conference CREATING A SHARED NEED - very important tool to get commitment - a matrix with threats and opportunities - both short and long term - realization of the actual possibilities / problems CULTURAL DIFFERENCIES - Supplier in Europe - Far East - Experiences from USA to be enjoyed

  5. SCC 1998 European Conference 2. TRUST AND OPENESS - is very vital for the succes of the project - core team must be able to discuss all items openly - old-fashioned CUSTOMER - supplier relationship is out of the question 3. SELECTION OF CHAIN PARTNERS - small local supplier vs. large global supplier - sub-suppliers selected by the customer

  6. SCC 1998 European Conference 4. HOW TO START? - definition of the project - current state analysis - vision creation - definition of gap(s) - hard work……... 5.WHO TAKES THE LEAD? 1.Customer - normally makes the first contact 2. Supplier - can also be a leader - depending on the experiences the have 3. Consultant - has a significant role in “keeping the parties on the right road”

  7. SCC 1998 European Conference 6. LEARNING FROM EACH OTHERS CAPABILITIES AND SEARCHING NEW WAYS TO BOOST THE CHAIN PERFORMANCE - large global suppliers can be very good teachers - attitude - open discussions between the parties - two-way benchmarking OPENNESS IS THE KEY WORD

  8. SCC 1998 European Conference 7. KNOWLEDGE AND INFORMATION SHARING 1. Project phase - what info is shared and what is not - who shares the info to each organization 2. Production phase - “everything” must be shared - customer shares forecasts, consumption, inventories, min/max-levels, targets, etc - supplier shares the “real” capacity info, capacity constraints and means to increase capacity in various situations 3. Other - joint customer - supplier steering groups

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