Why and how you should be getting your suppliers to innovate your products for you

1. INnovati
on
In the Supply
Chain
in action

2. Presentation Road Map
Advantages of Active Innovation in the Supply Chain
Sourcing Suitable Suppliers
Encouraging Active Innovation
Innovation in Action
Real Results of Active Innovation

3. News Talk
‘The future of manufacturing innovation is dependent on active
participation from the supply chain’ – SupplyChainStandard.com

4. News Talk
Nokia attribute their recent resurgence in the handheld telephone
market to active participation from their supply chain.

5. Advantages of Active Innovation
in the Supply Chain
Efficiency
Get products to market
faster. Increased
revenues and profits
earlier.
Improve success rate of
new products by making
the innovation process
stronger.
Expertise
Diversification
Uncover more
opportunities through
reaching out to expertise of
a completely different
specialization to that of
your R&D department
Diversify risk, by sharing
uncertain technologies
with suppliers.
Experts from different
areas are able to
objectively evaluate and
foresee issues/problems

6. Essential to the future of Manufacturing
Mankind’s collective knowledge is
constantly expanding.
Science and technology is advancing
more rapidly than ever.
Businesses cannot expect to retain all of
this knowledge in house.
They must look to external partners in
their supply chain to acquire this expertise.

7. How to Encourage your
Suppliers to Innovate for you

8. 1
Inform Suppliers of your GOALS
ALSO state your reasons for trying
to achieve these goals
eg. If the market dictates a ceiling price, you
must communicate this to your supplier.
Otherwise, they may feel you are simply trying
to pressure them on price.

9. 2
Inform Suppliers of the BENEFITS
1
Being the driving force behind the
improvements puts them in a fantastically
strong position to win the work.
2
3
Able to quickly easily move into production
because they’ve already got tools, fixtures,
programs from development.
Their expertise has contributed to the
design – processes will match their
equipment, increasing efficiency to
manufacture.

10. Active Innovation in Action

11. Case Study 1 – GCA Cable Clamp
The Background:
Active Innovation in Action
GCA manufactures a special purpose cable
clamp, for use in the telecoms market, destined
to supply to their pool of blue chip international
clients.
At the time, a different clamp was being used for
each of the 3 different sizes of beam.
The Requirement:
GCA wanted to reduce their inventory by
innovating a single clamp that would attach a
cable to all 3 different sizes of beam.
The Approach:
Design Clamp
Manage Production
Quality Control

12. Case Study 1 – GCA Cable Clamp
The Results
Diamond designed a Single clamp, which incorporated all of the
required features, amalgamating them in a way that did not reduce
the individual design functionality and where possible improved
added functionality. 1 clamp that does the job of 3.
Diamond advised on appropriate manufacturing processes.
The design was finalised by Diamond and approved by GCA. Then a
suitable manufacturer was chosen.
A number of worldwide locations were researched and the decision
was made to outsource manufacture to a qualified supplier in NorthWestern China.

13. Case Study 1 – GCA Cable Clamp
The Benefits
• Economies of Scale
• 60% reduction in
Larger volume of single
inventory
purchase, thereby
reduced cost
1 Clamp
that does
the job of 3
• Less cash tied up
in stock -
Improved cash flow
•
60% reduction in
stock waste at end of
product life cycle

14. Case Study 2 – Pure Bike Co.
The Background:
Active Innovation in Action
Pure Bike Co. have in depth expertise and
product knowledge of BMX pedals.
Diamond have expertise in manufacturing and
a dynamic supply chain.
Pure Bike Co. are surveying the market,
finding the best design features.
Diamond are designing new BMX pedals with
Pure Bike Co. input.

15. Case Study 2 – Pure Bike Co.
The Benefits
•
•
•
Machining processes cut down from
3 to 1 – Cost Saving.
Quick assemble of the pedal to the
crank
Weight saving from use of optimum
materials.