Supply Relationship Management Presentation 15 April 2005

SUPPLY RELATIONSHIP MANAGEMENT – PRESENTATION

CONTENT

INTRODUCTION

QUESTION – WHAT DO YOU WANT FROM AND WHO IN YOUR

SUPPLY CHAIN?

BUSINESS NEEDS AND YOUR SUPPLY CHAIN

PROJECT MANAGEMENT

NEW METHODS

PARETO’S MANAGEMENT

PRATER LTD SUPPLY DEVELOPMENT PROGRESS MONITOR

SUMMARY

Supply Relationship Management Presentation 15 April 2005

I DO NOT SEE THIS AS A DESCRIPTION OF A SUPPLY CHAIN

MANAGER’S ROLE BUT MORE AS SUPPLY CHAIN IDEAS

BY SAVING MONEY WITHIN PURCHASING £ → WILL GO STRAIGHT

TO THE BOTTOM LINE

ONLY ENCOURAGE BUILDING RELATIONSHIPS WITH POSITIVE

SUPPLIERS AND SUB-CONTRACTORS

THERE WILL BE A REQUIREMENT FOR A COMPETITION CLAUSE AND

A FRAMEWORK AGREEMENT

PRATER LTD SHOULD EXPECT TO SAVE ONE MILLION POUNDS OFF A POTENTIAL BUDGET SPEND OF FIFTEEN MILLION POUNDS IF THIS

METHOD IS DEVELOPED WITH SUPPLY RELATIONSHIPS

TEAM PLAYERS CRITICAL TO ALLOW CENTRALISATION OF DESIGN,

PROJECT AND PROCUREMENT MANAGEMENT UNDER ONE DISCIPLINE

THIS WILL ALLOW COHESION WITHIN THE SUPPLY CHAIN AND CREATE GAPS FOR CONTINUOUS SUPPLY OFFERING THE CORE

BASE OF SUPPLIERS AND SUB-CONTRACTORS CLARITY OF POTENTIAL ORDERS

Supply Relationship Management Presentation 15 April 2005

EXAMPLES OF THE POSSIBLE PRATER LTD SUPPLY CHAIN

STEELWORK SUPPLIERS / FABRICATORS Corus Tubeworkers

Forest fabrications

ROOFING Kingspan Sarnafil

Radmat

ALUMINIUM Sapa

Schüco Kawneer

GLASS Solaglas

Pilkington Glaverbel

CLADDING ame Sobra

Kalzip

ENTRANCE SYSTEMS Dorma Boon Edam

GU Technologies

ROOF VENTS/BRISE SOLEIL Colt

Airvent Levolux

Supply Relationship Management Presentation 15 April 2005

BUSINESS NEEDS

ALINE YOUR SUPPLY CHAIN TO THE BUSINESS NEEDS AND MAKE

PRATER LTD

COMPETITVE

COST EFFECTIVE

COMPLIANT CONTRACT

= “THE TOTAL BUILDING PACKAGE”

THE BUSINESS NEED - TO TURN THE SUPPLY BASE / PARTNERS INTO A PRATER ASSET

BY INVOLVING SUPPLIERS AND SUB-CONTRACTORS IN THE DESIGN ENVIROMENT OF THE BUSINESS USING THEM AS AN EXTENSION OF

YOUR OWN COMPANY WILL BENEFIT ALL BY FORMING NETWORKS AND LESS LIKELY TO HAVE FUSTRATED SUPPLIERS

BUILDING TRUST WITH THE SUPPLY NETWORK CAN PROVIDE A

SMOOTHER CONTRACT WHICH WILL OFFER GREATER CASH, QUALITY AND TIME. PARETO’S MANAGEMENT THE 80/20 REVOLUTION

COST CONTROL ON EXPENDITURE DURING THE DESIGN AND MANUFACTURE ELEMENT OF THE CONTRACT AGAIN BY INVOLVING

THE SUPPLIERS AND SUB-CONTRACTORS AT STAGE 1 IS FUNDAMENTAL

engineering → estimating → tender → best price

Prater trust – facilitators of opportunities

Prater Order

Supply Relationship Management Presentation 15 April 2005

PRATER PROJECT MANAGEMENT

LESS RELIANCE ON STOCK CONTROL IF SUPPLIER AND SUB-

CONTRACTOR IS INVOLVED AT STAGE 1

SET THE CRITERIA

TRADING CONDITIONS

DESIGN CONDITIONS

ESTIMATING / TENDER PRICES

ORDERING PROCESS / BESPOKE PURCHASING

MANUFACTURE / STOCK CONTROL

ON TIME - NO NONSENSE DELIVERY

TURNKEY PACKAGES

= A SMOOTH RUNNING PROJECT

NO RETENTIONS NO L&A DAMAGES

NO LATE LEAD TIMES

= EARLY HANDOVER – CONTRACT BONUSES

= OFF SITE BENEFITS = BETTER CASH FLOW

= BETTER REPUTATION

RAISE AWARENESS WITHIN THE SUPPLIERS AND SUB-CONTRACTORS PROVIDES BENEFITS TO ALL FOR THE FUTURE CONTRACTS AND

PROJECTS

trust → involvement → positives

Supply Relationship Management Presentation 15 April 2005

USE NEW METHODS

E AUCTIONING – APPROPRIATE IN CERTAIN CIRCUMSTANCES OK FOR HIGH VOLUME MATERIALS SUCH AS FIXINGS, MEMBRANE, STEEL

TONNAGE AND MILL ALUMINIUM ONE OFFS WILL NOT BE COST

EFFECTIVE BY BUYING FROM E COMMERCE

HOT DESKING WITHIN PRATER LTD FOR SUPPLIERS AND SUB-CONTRACTOR ENGINEERS, DESIGNERS AND PROJECT MANAGERS

forming networks and building trust

“PARETO’S MANAGEMENT”

The art of management is partly to select which of the possible

analyses are significant, and to stop wasting time on minor matters of lesser importance

Whatever your business, search for just two numbers. Identify the 20%

of activities that take 80% of the time: and then the 20% that account for 80% of total cost (they are often one and the same).

SUMMARY

TRUST OVER POWER

SUPPLIERS / SUB-CONTRACTORS BECOME AN EXTENSION AND INTEGRAL PART OF YOUR OWN BUSINESS

COST ON PRICE AND AVOID GENERALISATION

PURCHASING CAN CONTRIBUTE TO THE BUSINESS

MONITOR SUPPLIERS / SUB-CONTRACTORS WITH “JIT” AND “KANBAN” DELIVERIES

CONCURRENT ENGINEERING USE THE SUPPLIERS / SUB-

CONTRACTORS AS A DESIGN RESOURCE

“THEORY OF VALUE” - CONTRIBUTES TO THE NEEDS OF THE BUSINESS “WHAT GETS MEASURED GETS DONE”