Selected Allies Enhance Performance Across the Supply Chain Evolution

CAREFULLY SELECTED ALLIES ENHANCE PERFORMANCE ACROSS THE SUPPLY CHAIN EVOLUTION 

The third level begins the external partnering so vital to significant improvement in design and manufacturing. Now product development is done across several locations with the help of carefully selected suppliers 

In Level 4, where the value delivery system appears, product development advances to the point where the partners are using highly sophisticated communication tools, often based around business process management (BPM) tools. The time from concept to commercial acceptance is reduced dramatically, often by at least 30%, but with some firms achieving 50% or more. Key suppliers are integrated into the technology and product development and introduction road maps are extended to second- and third-tier suppliers collaborating with the development effort. 

Together, the partners capture, share, and review all aspects of the design rationale and modify it where necessary. 

In one example, a manufacturer of medical devices, partnering at this level with key suppliers on design, implementation, and customization of solutions directed toward specific key customers resulted in dramatic improvements. Cycle times were reduced from 60 to 88 days to a range of 8 to 19 days, with an average of 15. There was significant quality improvement and new operational metrics have led to industry best standards. 

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