Supplier Improvement Program Delivering Results
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It’s no secret that Lincoln Industries constantly looks for ways to improve efficiency and provide better solutions for customers. While the company typically looks internally for such improvement, the latest effort has Lincoln Industries directing its attention elsewhere—its suppliers.
The Supplier Improvement Program focuses on optimizing relationships between Lincoln Industries and the companies it relies on as suppliers. By being more dedicated to helping each other succeed, both Lincoln Industries and its suppliers can produce better results. The impact has already been positive. According to Yadi Kamelian, Vice President of Integrated Finishing Services at Lincoln Industries, “Many companies initiate programs like this and at the end of the day are only looking at price reduction. Our goal is to work hand-in-hand to become better and more competitive together.”
The program begins with a meeting between Lincoln Industries and the supplier to review the Beliefs and Drivers of Lincoln Industries. “We want to enhance our suppliers’ understanding of our values so they know what we expect from ourselves internally and how they can best fit when working with the people of our company,” said Director of Supply Management Jim Dutmer. He continued, “We also share information about our company, history and customer base. This includes a discussion of our core competencies and what drives our strategic planning process.” The initial meeting also involves discussion of Lincoln Industries’ growth, productivity, quality and people strategies.
Next, Lincoln Industries discusses its definition of operational excellence, including areas that drive supplier excellence. More specifically, it involves expectations of supplier excellence in support of Lincoln Industries’ operational excellence initiatives. At this point in the process, Supply Management Development Engineer Toni Herrera reviews Lincoln Industries’ Supplier Performance metrics—cost, quality, delivery and responsiveness—and evaluates how suppliers are performing against these metrics.
“Based on this discussion, we develop action plans for both Lincoln Industries and the suppliers,” said Herrera. “We want both parties to participate in this process and encourage collaboration on these improvements.”
Sharing in such improvements is unique to the Supplier Improvement Program process, according to the suppliers, and it’s something they greatly appreciate. It demonstrates that Lincoln Industries is committed to working with suppliers to make real, meaningful progress in the relationship.
Said Herrera, “We are already seeing our suppliers’ performance improve and, as a result, our service to customers is improving.”
Jim Dutmer, front, discusses supplier improvement with Mike Higgins, far right. Mike is the Midwest Director of Sales and Marketing for RCM Industries (Aallied Die Casting). Also pictured meeting with Mike are, from left, Yadi Kamelian, Hank Orme, Bill Ellerbee, and Sujay Nooka of Lincoln Industries.