2. 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
8/17/2016 2
3. 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.
8/17/2016 3
4. 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
8/17/2016 4
5. Wilbert Plastic Services
Cross Commodity Strategy- Exit
8/17/2016 5
Founded in 1886, plastic manufacturing
began in 1966.
Services 10 industries, 40% automotive.
Sales volume of $290M.
Two parts sourced through PF program
and no guaranteed program for growth.
----------------------
Wanted guaranteed new business.
WPS capacity sold, parts were
resourced.
Name Supplier Sumof 2015AVOB Sumof 2014AVOB
WILBERTPLASTICSERVICES 62776 77,013$ 237,734$
6. 8/17/2016
US Farathane
Cross Commodity Strategy- Exit Fuel Housing Commodity
6
Sales volume of $520M.
Fuel housing commodity makes up 4.3% of business in this commodity.
Excellent in productivity.
Business performed in 24 commodities.
Red in quality.
Infringed on a patent, grounds for reduction.
Name Supplier Sumof2015AVOB Sumof2014AVOB
USFCORPORATION 93785 7,209,162$ 7,078,929$
9. 8/17/2016
Supplier Reduction Chart
Maintain 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.