Title: CSCMP Presentation: Track 11 1017 Tues 9:30
1CSCMP Presentation Track 11 10/17 Tues 930
- Transportation Management Case Study
- Integrating
- Strategies, Initiatives, Metrics Tactics
- Scott Hebert
- Director of Materials and Logistics,
Williams - Alan Leeds President , Y-Change Inc.
- Terrance Pohlen Director, Ctr. for Logistics
Education Research University of North Texas. - Jay Washbourne VP Operations, Williams
2What Will Be Covered
- What you wont see
- State-of-the-art logistics and process
- Sophisticated technology and systems
- What you will see
- Shift from product to channel focus throughout
company - Cascading company strategies and metrics to
department initiatives and individual tactics as
a means to drive change - Integrated process from supplier to customer
delivery - If you are interested in seeing
- How a company can fundamentally shift
directionwork in progress - Practical tools templates for defining
aligning strategy metrics - Where logistics is a fundamental ingredient in
this change process - .stay tuned
3Agenda
- CWP International
- Who we are and our challenges
- The change process and timeline
- Metrics
- CWP Product Scorecards
- Scorecards
- Strategy
- CWP Strategy and the Initiative Cascade
- Logistics Strategy and Initiatives
- Logistics Scorecard
- Tactics
- Material Flow
- Realignment
- Strategic Carrier Utilization
- Concluding Remarks
- Results
- Lessons Learned
4Who is CWP
5The Growth Challenge
- Both PMI and Williams primary product lines
serve very mature markets which are level or
slowly diminishing - We merged operations (Phoenix, Colton Ca, and
added Oklahoma City), including a new channel
emphasis - With costs of raw materials and shipping
skyrocketing, leveraging our buying power is
crucial - Previous management integrated with new senior
staff and a new Road to Growth
6Our Road to Growth Vision
- Changing the business focus from
Products to Channels and the Products they
need
7CWP Growth Focus
Existing Products New Channel Customers
New Products New Channel Customers
Existing Products Existing Channel Customers
New Products Existing Channel Customers
8 The CWP Change Process
9 Deployment Timeline
10 The CWP Change Process
Strategy Initiatives Right priorities
Strategy Initiative Alignment Deployment
Customer Focused Marketing Strategy
Tactics Right processes
CWP Processes
Logistics Freight Tactics - Seamless Flow
of Material - Realignment - Strategic Carrier
Utilization
Departmental Procedures
11CWP Scorecard Profitability Late Deliveries
Metrics
12Transportation Scorecard
Metrics
13 The CWP Change Process
Strategy
Metrics Right information
CWP, Product Scorecards
Dept Logistics Freight Scorecard
Tactics Right processes
CWP Processes
Logistics Freight Tactics - Seamless Flow
of Material - Realignment - Strategic Carrier
Utilization
Departmental Procedures
14Strategy Initiative Cascade
Strategy
15CWP Operations Strategy
10 cost reduction by Dec 15th
16Materials Logistics Strategy
17CWP Drive Down Material costs Initiative Cascade
9/2 goals, objectives and metrics agreed to by
logistics dept
10/1 2 carriers developing Proposals for
West Cost regional business
Yolanda Salas
18 The CWP Change Process
19Transportation/Logistics Initiatives
Tactics
- Seamless flow of material
- From supplier through production to customers
jobsite (Fan Coil) - Dept realignment
- Bring down departmental barriers to promote
communication - Strategic carrier utilization tactics
- Determine traffic lanes, carrier capabilities and
required service level
20Seamless Flow of Material
Tactics
- Show supplier pulling into doorassembly to
staging area to ships -
- Application of Kan Ban from raw materials through
shipping - Visual indicators for purchasing material
handling - Visual load characteristics to alert sales of
potential freight considerations
21Realignment
Tactics
- Phase 1 Colton process and dept integration
- Customer focused improvements
- CWP OA process Streamlined Integrated
- Silo vs. integrated roles
- Phase 2 CWP Material Logistics redefined
- Broadened scope for Purchasing Dept (Kan Ban and
VMI) - Two factories at different stages of maturity
The book
22Strategic Carrier Utilization
Tactics
- Phase 1 Low hanging fruit
- Providing greater flexibility to traffic dept
- Focus on the total transportation process
- Inbound and outbound freight consolidation
- Full truck load emphasis
- Control additional costs due to customer
specified - shipment profile
- Defined incoming deep discounts for adding to
- already discounted outbound contracts
- Phase 2 Formalized programs with defined
carriers - Defined by their service, capabilities, price and
damage control - Providing VMI to our customers (milk run)
23Information Requirements Dedicated Carrier
milk run study
Tactics
- Freight rates
- Shipments
- Origin
- Volume
- Date
- Weight
- Carriers
- Inbound and outbound (Colton and Phoenix)
24Results
- Translating Our Vision into a Successful
Company - Develop a climate for change
- Training process, teamwork, lean concepts
- Mgt direction set focus, follow up, lead the
effort - Provide the tools for this change
- Process Metrics.Strategy.TacticsResults
- Tools to make this easier Big Machines, Y-Change
- Enable our people to grow with this change
- Celebrate successes
- Providing the opportunities that growth will
enable
25Lessons learned
- Burning platform for change
- Data will provide direction, even if its not
easy to get - Mgt engagement bi-weekly meetings to gauge
progress and remove roadblocks - Needs greater emphasis early on in defining and
hiring the correct candidates - Committed senior executives
26 27Metrics
Metrics
- Company strategy drives logistics strategy
- Co metrics now drives logistics metrics
- Identified supporting processes
- Determined desired outcomes
- Developed metrics that aligned performance and
outcomes with the strategy - Utilize the metrics to drive and measure
improvements
28Extras
29Transportation Project