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ASCO - Numatics Global Organization

ASCO - Numatics Global Organization. January 15, 2008. ASCO – Numatics: Global Materials Organization. Asia. GMDC. Global CM’s. Americas. Europe. Regional Supply Management Team. Supplier Management Supplier development – quality & delivery Coordinate part transitions

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ASCO - Numatics Global Organization

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  1. ASCO - Numatics Global Organization January 15, 2008

  2. ASCO – Numatics: Global Materials Organization Asia GMDC Global CM’s Americas Europe

  3. Regional Supply Management Team • Supplier Management • Supplier development – quality & delivery • Coordinate part transitions • Implement inventory programs • NCDR / NCMR involvement where necessary • Expedite when escalated beyond buyer/planning • Invoice reconciliation • Update and maintain quote files • Develop Lean concepts with key suppliers • Commodity Management • Negotiation – pricing/inventory/payment terms/T&C’s • E-source management • Forward planning, sourcing & contract management • Commodity quality/performance responsibility • Understand material cost drivers and drive inflation containment • Drive cost reductions • Drive BCC sourcing initiative • Drive part rationalization/engineering programs • Identify and maintain preferred supplier list • Drive new products procurement process Complementary responsibilities, operating as a team

  4. Asia Supply Chain Organization Global resources drive BCC sourcing

  5. Global Commodity Managers • Top 3 commodities managed globally • Machined parts, brass forgings, die castings • Represents $72M, 36% of total spend • Advantages for managing globally • Leverage, leverage, leverage • Supply base consolidation • Engage preferred suppliers for best quality and delivery • Local purchasing managers don’t have time to manage strategically • ROTC based decision making • Oversee supplier transition process • Manage currency risk globally • Manage and/or hedge raw material pass-thru • Next steps • Act globally with full accountability for performance • Next tier of key commodities should be managed globally Leverage, Leverage, Leverage

  6. GMDC ASCO – Numatics Capabilities Strategic information enables efficient supply chain operations

  7. Final Thoughts… • Global organization does align procurement resources with objectives, but…cultures and local mentalities don’t change overnight • More work to do, especially with some of the silo organizations • Numatics integration is a priority and the organization will evolve • Logistics organization - under-resourced and under-leveraged • Country general management trust and support is critical • Consistent and visible supplier metric systems globally • Biggest challenge overall - effective communication • Key success factor - hire good people “GLOBAL” – Easy to say, hard to do!

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