Mike McDoniel Vice President Purchasing and Logistics

Transcription

1 CASE STUDY: SHIPPERS ASSOCIATIONS A TOOL TO ACHIEVE COMPETITIVE OCEAN PRICING Mike McDoniel Vice President Purchasing and Logistics March 2, 2016

2 MISSION Provide uncommon, creative solutions which contribute to the success of our customers. VALUES Accountability Compassion Excellence Fairness 2 Integrity

3 PACE OVERVIEW Largest network of die casting, tool & die and external finishing & painting facilities in North America, including: 3 12 DIVISIONS (21 FACILITIES) 3 TOOL & DIE SHOPS 2 FINISHING & PAINTING FACILITIES

4 4 FACILITIES

5 OVERVIEW OVER 4000 ASSOCIATE S ALUMINUM, MAGNESIUM, & ZINC ALLOYS OVER 270 DIE CASTING MACHINES 5 Cast products ranging in weight from.067 ounces to 70 pounds Conventional die casting machine sizes ranging from 60 to 3,000 tons

6 CORE COMPETENCIES ENGINEERING PROTOTYPING TOOL & DIE MAKING DIE CASTING 6 Polishing Machining Powder coating Wet painting Electrostatic Painting Chromating Impregnating Shot Blasting FINISHING ASSEMBLY

7 MARKETS SERVED AUTOMOTIVE 21% MOTORCYCLE 17% LIGHTING GRILLS S 12% 9% SMALL ENGINES 7% APPLIANCES 6% 7 MOTORS & INDUSTRIAL CONTROLS 5% TELECOM & ELECTRONIC EQUIPMENT 3% POWER & HAND TOOLS 3% MILITARY 2%

8 8 PARTNERS

9 PACE LEAN INITIATIVE Business Excellence: Systematic approach to identifying and eliminating waste through continuous improvement by flowing the product at the demand of the consumer. Internal Process Commitments: Streamline Tooling Construction Product Design Production Process Customer Commitments: Reduce Time to Market Production Costs 9

10 LEAN SUPPLY CHAIN PACE places extremely high value on lean manufacturing Customer Commitment Emphasis on delivering products to customers when needed 10 Agile and highvelocity supply chain with firm commitment to customer delivery schedules Internal Process Lean & Agile Supply Chain

11 INTERNATIONAL SUPPLY CHAIN BRIEFING Items Sourced CHINA BASED SUPPLIERS TOOLING & COMPONENTS GRAFTON, WI HARRISON, AR China-based suppliers producing tooling and liners 11 Used at PACE locations in Grafton, WI and Harrison, AR

12 OCEAN TRANSPORTATION PACE Requirements Vital link in the supply chain for PACE Flexible with multiple options Need consistent schedule Competitive pricing Reliable exception handling process 12 Maintain right-size inventory levels Production lines up and running without shutdowns Meet and exceed promised customer delivery schedules Proactive notification Issue resolution

13 LOGISTICS PARTNER Provide Multiple Options Customer Service Why LPSA? Exception Handling Industry Knowledge & Experience 13

14 LPSA SERVICES Ocean Services Dray Services Access to multiple ocean contracts Master bill of lading issued to PACE No markup on the ocean rate Space issues resolved proactively by working with the carriers Coordination with the suppliers at origin 14 Dray delivery services management Drop and Hook/Live-unload services Alternate routing options during port congestion and labor issues Trans-load and cross-dock services as needed Container returns management

15 TRANSPORTATION PROCUREMENT Yearly Bid Process Changes/New requirements Service-level requirements Transit time needs Space commitments Rate levels Additional service needs 15 Quarterly Reviews Forecast review and changes Additional demand spikes Past performance and service review Seasonal changes (if any) Market reviews Projections

16 SHIPMENT EXECUTION Execution Assistance Forecasts shared with LPSA team at regular intervals Spikes in demand communicated to LPSA team LPSA works with the carriers in getting the additional space When space gets required tight, alternate carriers and/or routing options are considered for quicker space confirmation and execution 16

17 SHIPMENT EXECUTION Process Flexibility LPSA - Ocean contracts LPSA - Dray Management Origin Booking and Customs Brokerage handled by 3 rd party 17

18 BENEFITS SUMMARY Allows PACE to focus on the core business Minimal overhead expense in managing international transportation Realize the pricing benefits of a larger player by being part of the association 18

19 19 QUESTIONS?