Supplier collaboration and the resulting improvements are critical requirements for implementing lean across the supply chain. In this 1-hour webinar, learn how to start developing your suppliers to drive results in cost, lead time, and material availability. We will explore: Why managing supplier performance is critical to a lean logistics strategy Recommended tools to monitor, communicate, and advocate supplier performance Management systems: dashboards and the Plan-Do-Check-Act (PDCA) cycle Results: learn how one customer used a disciplined supplier development process to impact freight costs and margins. *This webinar is part of a special “Go to the Gemba” series where we interview different industry supply chain professionals about how they use lean principles and tools to solve their challenges.

1. The Keys to Collaboration

2. Copyright LeanCor Supply Chain Group
Ashley Yentz
Director - Account Management
LeanCor Supply Chain Group
ayentz@leancor.com
Career Focus Areas:
Entire career committed to lean logistics –
customer account management, change
management, KPI creation, lean leadership,
network design, standard work and operating
procedures
Skilled in coaching organizations through their
lean logistics implementation: strategy
deployment, culture change, process
standardization
Prior Roles:
•Kaizen Leader, Strategic Planning - Toyota Motor
Sales U.S.A.
•Continuous Improvement Leader - Toyota’s
Parts Operation Supply Chain
•Transportation Analyst - Hilti, Inc.

3. Copyright LeanCor Supply Chain Group
Michelle Cribbs
Manager – Lean Supply Chain
Operations
LeanCor Supply Chain Group
mcribbs@leancor.com
Career Focus Areas:
Experience in supply chain, transportation and
purchasing management.
Works alongside purchasing professionals at
LeanCor Logistics customer facilities to increase
and improve supplier performance, manage and
reduce inventory, and decrease transportation
cost. Her knowledge and understanding of MRP
systems is instrumental in streamlining customer
processes with LeanCor’s solutions.
Prior Roles:
•Logistics and Materials Coordinator - Siemens
Energy & Automations
•Account Executive - Total Quality Logistics

4. Copyright LeanCor Supply Chain Group
• Lean, supply chain, six
sigma, and leadership
courses that develop
people capability and
problem solving skills
while building a culture of
operational excellence.
 Project-based, end-to-
end supply chain
solutions that improve
your processes, reduce
inventory and Total Cost,
and optimize your
network.
 Custom, outsourced
transportation
management and
warehousing
solutions that optimize
material flow, and exceed
your business goals.
Trusted supply chain partner that specializes in lean principles to
deliver operational improvement. Three divisions:

5. Copyright LeanCor Supply Chain Group
Custom, outsourced transportation management and warehousing
solutions that optimize material flow and exceed your business goals
Transportation
Management
Dedicated
Warehousing and
Distribution
Web-Based TMS

6. Copyright LeanCor Supply Chain Group
•Revenue growth is more difficult to achieve, costs are increasing, and margins are shrinking
•Changing customer requirements require an agile and dynamic supply chain that’s hard to manage
•Shortages in materials is driving excessive expedites and intercompany logistics.
•Large inventories have become the norm to “buffer” for an unstable supply base.
•Price based negotiations has moved you towards “combative” relationships with your supply chain
partners
•Changes due to complexities in market, channel, supply networks, and distributed facilities has added
difficulty to supply chain planning and decision making.
Which of these challenges resonates in your business?

7. Copyright LeanCor Supply Chain Group

8. Copyright LeanCor Supply Chain Group
What kind of relationships have you built with your suppliers?
•Shared Strategic Objectives
•Managed by relationship
•Discretionary efforts & investments in customer success
•Inclusive and Open
•Shared business objectives
•Supplier maximizing value
•Limited customer directed innovation
•Maximize profits through waste elimination
•Focus on operational costs (Supply Chain/Quality)
•Maximize profits through piece price
•Low relationship value
•Price based negotiation

9. Copyright LeanCor Supply Chain Group
Collaboration leads to:
• Increased visibility to material movement
• Advanced warning of issues
• Increased on time delivery
• Reduced Lead Times
• Reduced Inventory
• Better Quality
• Shared savings from Supplier cost reduction
• Supplier involvement in product/service development
• Win/Win scenarios

10. Copyright LeanCor Supply Chain Group
 Shortage Recovery and Unplanned
Order Process
 Time to react is critical to reducing and
avoiding cost.
 Systems like LeanCor’s Orloe Toolkit can
proactively notify you and your
stakeholders when events within the
supply chain happen.
 Such situations can include:
• An order quantity has been revised
• Route instructions have been released
• A discrepancy between your order
quantity and the supplier's ship
quantity has occurred
• The supplier has failed to enter a ship
quantity or the quantity recorded was
zero
A Transportation Management System
(TMS) should notify all stakeholders
of an incomplete shipment and
available recovery options before
delivery.
Do you currently use a TMS or ASN System?

11. Copyright LeanCor Supply Chain Group
In a system, a process that
occurs will tend to increase the
total entropy of the universe.
Second law of thermodynamics
System: A group of interacting, interrelated, or interdependent
elements forming a complex whole.
Entropy: The steady deterioration of a system or society.

12. Copyright LeanCor Supply Chain Group
How often do you share your suppliers’ performance?
Lead Time On Time and In Full
Quality: Defects Cooperation/Partnership
Reviewed by: Supplier & LeanCor Date: 6/12/15
Good Caution Take ActionLeanCor Supplier Scorecard
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May
Target Green Target Yellow Red Zone OTIF %
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN
0
5
10
15
20
25
May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May
Lead Time Vendor Stated Lead Time

13. Copyright LeanCor Supply Chain Group
Supplier View – Shipment Discrepancy
All Users View – Live Historical Performance Summary

14. Copyright LeanCor Supply Chain Group
• Identify top offenders
• Identify gaps
• Set targets to improve
• Assign clear action and
support for improvement
• Conduct collaborative problem
solving
• Set regular cadence to review
Do you have a disciplined Management System to improve?

15. Copyright LeanCor Supply Chain Group
How often do you problem solve with your suppliers?
Do the Work & Identify the Problem
Plan & perform the work.
Identify gap between plan vs. actual condition.
Define the Problem
Document & validate current state.
Develop a clearly defined problem statement.
Determine Root Cause
Identify all possible causes to the problem.
Isolate critical few root causes to the problem.
Identify Solutions
Develop solutions that address the root causes to the problem.
Ensure the solutions support the entire value-stream.
Implement & Sustain the Solution
Communicate, train, and Implement the solution.
Measure and monitor the impact of the solution.
LearnOptimizeExecuteOperateReview

16. Copyright LeanCor Supply Chain Group

17. Copyright LeanCor Supply Chain Group

18. Copyright LeanCor Supply Chain Group
• Reduced inventory investments
• Reduced lead times
• Reduced transportation investment
• Mutual cost savings due to
collaborative problem solving
• Execution of plans is easier for all
parties involved
• Optimized material flow throughout
Supply Chain
• Increased team morale, decrease in
firefighting
• Stronger relationships with suppliers

19. Copyright LeanCor Supply Chain Group
WED, August 13 | 11:00 – 12:00 EDT
Register Now:
http://info.leancor.com/webinar-august-13-three-ps-
of-carrier-performance-0

20. Copyright LeanCor Supply Chain Group
Ashley Yentz
ayentz@leancor.com
925.899.9725
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