05/02/2023

Grant Grundy

Supplier Reduction

Chemical PurchasingCathy CoonHoward University, Supply Chain Mgmt.May 2017

Auburn Hills, USA

Destination 2020:

205/02/2023

Purchasing and Supplier Quality have a plethora of

suppliers across commodities.

Inefficient expenditure of funds on resources that don’t meet requirements

outlined in metric performance (quality,

shipping, etc).

Problem

305/02/2023

Goals

Ensure thorough review of suppliers within all Chemical clusters while supporting the four year objective.

Develop maintain and exit plans for every exterior plastic supplier.

Develop cross commodity supplier strategy for at least two exterior plastic suppliers.

405/02/2023

Compiled master list of exterior plastic

suppliers encompassing less

than $100K AVOB per year.

Consulted with Chemical buyers in

regards to maintain/exit plans.

Developed cross commodity strategies

for two critical suppliers.

Roughly 400 suppliers were examined. (Maintain=205,

Exit=195)

Steps

Wilbert Plastic ServicesCross Commodity Strategy- Exit

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Founded in 1886, plastic manufacturing began in 1966.

Services 10 industries, 40% automotive.

Sales volume of $290M.

Two parts sourced through PF program and no guaranteed program for growth.

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Wanted guaranteed new business.

WPS capacity sold, parts were resourced.

Name Supplier Sum of 2015 AVOB Sum of 2014 AVOBWILBERT PLASTIC SERVICES 62776 77,013$ 237,734$

05/02/2023

US Farathane Cross Commodity Strategy- Exit Fuel Housing Commodity

6

Sales volume of $520M.

Fuel housing commodity makes up 4.3% of business in this commodity.

Excellent in productivity.

Business performed in 24 commodities.

Red in quality.

Infringed on a patent, grounds for reduction.

Name Supplier Sum of 2015 AVOB Sum of 2014 AVOBU S F CORPORATION 93785 7,209,162$ 7,078,929$

05/02/2023

Significance

7

Lowers expenditure cost.

Decreases buyer workload.

Helps maintain healthy relationships with

suppliers.

-Major Areas for Supplier Reduction & Management

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Summary

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Abundance of Chemical suppliers.

Implemented grow/exit plans and developed commodity strategies.

Maintain 205 suppliers and exited 195.

Contributed master list of exterior plastic suppliers via P&SQ Share Point.

05/02/2023

Supplier Reduction ChartMaintain and Exit Plans for exterior plastic suppliers.

9

Yellow highlights supplier codes no longer in use across commodities.

Red represents suppliers encompassing less than $100K in Annual Value of Business.

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Thank You!-Questions?