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CSCMP Presentation: Track 11 1017 Tues 9:30

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How a company can fundamentally shift direction...work in progress ... Information Requirements: Dedicated Carrier 'milk run' study. Freight rates. Shipments ... – PowerPoint PPT presentation

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Title: CSCMP Presentation: Track 11 1017 Tues 9:30


1
CSCMP 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

2
What 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

3
Agenda
  • 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

4
Who is CWP
5
The 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

6
Our Road to Growth Vision
  • Changing the business focus from

Products to Channels and the Products they
need

7
CWP 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
11
CWP Scorecard Profitability Late Deliveries
Metrics
12
Transportation 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
14
Strategy Initiative Cascade
Strategy
15
CWP Operations Strategy
10 cost reduction by Dec 15th
16
Materials Logistics Strategy
17
CWP 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
19
Transportation/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

20
Seamless 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

21
Realignment
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

22
Strategic 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)

23
Information Requirements Dedicated Carrier
milk run study
Tactics
  • Freight rates
  • Shipments
  • Origin
  • Volume
  • Date
  • Weight
  • Carriers
  • Inbound and outbound (Colton and Phoenix)

24
Results
  • 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

25
Lessons 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
  • QUESTIONS?

27
Metrics
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

28
Extras
  • E

29
Transportation Project
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