Supplier Capacity Mgt HEROMOTO CORP
Supplier Capacity Mgt
2.Justify the need
2.1 Is the effort aligned to Hero's strategy?
Hero setting up new plant in Halol. With increased volumes, Revenue risks become critical for shareholders
Churning reliable information through network of 450 suppliers at much more granular level & faster in order to react to market changes
2.2 what are the desired benefits for the company and how will we measure them?
Higher Capacity Utilization of plants, better margins
Lower loss of revenue with dynamic model changes
Ontime new product launch
Dont' know how to measure these outcomes yet?
2.3 How will we ensure that a solution is implemented?
Test the solution with smaller set of suppliers first
Test the solution with larger set of critical suppliers only
identify potential failures modes in supplier relationships
Take full responsibility for the solution deployment and allow users to focus more on outcomes?
create a powerful use case for supplier adoption e.g timely and accurate data being uploaded
3.Contextualize the problem
3.1 What approaches have client tried?
build exel based capacity calculation templates
Request suppliers on an ongoing basis to update data on emails
current approaches are cumbersome, and time consuming
3.2 What have other auto companies tried?
JLR custom built
Schneider uses Kinaxis
Nissan uses Standard software
3.3 What are the internal/external constraints on implementing a solution
Price of a ready to use cloud solution
supplier's agreement to share data
No specific solution exists in the market only for capacity
most capacity solutions are either visibility solution or planning inputs
4.Define the problem statement
4.1 Problem Statement
is the problem actually many problems?
what requirements must the solution meet & exceed?
which problem solvers should we engage?
how will the solution be evaluated & success measured
Use Case 1st Test Case to differentiate
1. Establish the need for a solution
1.1. What is the basic need
I want to know supply risk for next week, month, qtr and year
I want to know what options are available to mitigate supply risks
I want visibility to my supplier's capacity any given week. Suppliers should be able to update their data dynamically
I want to know which is the most cost effective option to solve supply risks
1.2. What is the desired outcome
: React proactively to likely supplier capacity issue
: Identify proactively risk to revenue given model mix changes in forecasts. Identify potential mitigation plans & cost
Identify capex/source change/tool change requirements for supplier
1.3. Who stands to benefit & why?
Reliable source of info on revenue risk & before time
Timely action on capacity issues
Better trust and less friction in day to day operations