Achieve unit cost reduction through supplier development.

Supplier Development

A common practice in Europe and North America, yet underutilised here in NZ.  Supplier development programs can bring significant benefits to both parties such as shared cost reductions, improved product quality, lead time reduction and continuity of supply.

Experience Counts.

Our team have international experience across Europe and Asia in developing supplier operations.  From our NZ base, we have supported the French Multi-national Schneider Electric to develop over 25 manufacturing suppliers in the Asia Pacific region alone, bringing significant cost and on-time supply benefits within the supply chain.

Tried and tested formula.

Supplier development is a great concept to most, yet the “how” of bringing suppliers on board with the process can be tricky.  Our formula has been honed through many years of experience, leaving us with a process that builds further trust between the parties and shared gains.  As a third party, LMAC can support the process of negotiations, the implementation process and integration of bottom line benefits to both organisations.

Funding Options.

We’re accredited suppliers of many government funded initiatives that range between 40% and 100% of costs. 

Further questions?

To find out more please contact Beth Richards:

Enjoy the benefits of a more open and trusting relationship with your suppliers, and build together for the future.

“LMAC have the depth of knowledge and tactical experience to help transform & support  a business.  This is why we selected LMAC to partner us in our Global Lean with Suppliers Initiative across south east asia. LMAC have engaged with 22 of our suppliers which has resulted in significant delivery and cost benefits within our supply chain.  the proof is in the results with LMAC and I would strongly recommend them to others.” 

Complete the questions below to test your data maturity.

Over the next two years, which three of the 14 key performance indicators do you most want to improve on as a business?

Make a note of these before you carry on reading.

The key 14 performance indicator categories:

Productivity

  • Asset & equipment efficiency
  • Inventory efficiency
  • Materials efficiency
  • Utilities efficiency
  • Workforce efficiency

Flexibility

  • Planning & scheduling effectiveness
  • Production flexibility
  • Workforce flexibility

Speed

  • Time to market
  • Time to delivery

Quality

  • Product quality
  • Process quality
  • Safety
  • Security

Now ask yourself – what is your current performance against these three KPIs? Can you tell me how you performed in the last hour, yesterday or last week?

If you can’t answer this question for all three because you aren’t measuring the data, then the next step is clear. Figure out what data you need to enable you to measure it, and decide how you are going to collect that data.

If you can answer it historically; last week or last month – ask yourself, is this retrospective view sufficient for me to really make improvements?

If you can answer it for all three up to the minute, then it is quite possible that shopfloor intelligence isn’t a number one priority for you. Look out for parts 2 and 3 of this blog series for some more insights into how you can make the data work for you.