Streamlined Supply Chain: Maximized Results

Streamlined Supply Chain: Maximized Results

Micki M. Maynard Project Manager & Lead Print Buyer Legrand, North America

Micki M. Maynard

 Started out in publishing in 1978  Specialty – Large Project Management  McGraw-Hill – Established an In-House Publishing Group  Capital Cities/ABC – Transitioned from traditional typesetting/mechanicals to desktop publishing

 Wiremold - Established an In-House Publishing Group; Became World Class Kaizen & Lean Thinking Leaders

 Legrand Limoges, France – Acquired Wiremold in 2000

How Would You Go About Adding $338,000 to your print budget?

The Challenge: Legrand Global Purchasing Mandate to Achieve Print Savings  Legrand, North America (LNA) comprised of seven independent companies  Seven long-standing vendor relationships  Seven unique purchasing practices (No longer quoting, except on very large projects)

 No LNA-wide standards on job tracking, spec collection, quarterly reporting  No LNA lead buyer  No volume discounts on 2007’s $3 million spend

The Scope

 Determine needs - web & sheet printing  Investigate standardized stock options  Investigate Print-on-Demand (POD) options  Develop tracking/reporting processes  Construct/negotiate contracts  Implement across all of LNA

The Support

 France – Global Purchasing Management  North America – Executive Management  Individual LNA Entity MarComm Management  Individual LNA Entity Delegates  LNA Purchasing Champion  Total Team of 8 committed members

The Timeline

 Project Challenge Accepted March 2008  Implementation of New Program October 2008  Program Fully Operational January 2009

Milestones

Vendor Selection / Data Collection

 Each LNA entity ranked & submitted the vendors they wanted team to consider  Total of 16 vendors were considered Sheet & Web  Each entity collected 2007 spend / spec details Catalogs Sheet Projects

Critical Tools

 Request for Information - RFI  Key Performance Indicators - KPI  Project Tracker  Request for Proposal – RFP / Master Spec  Decision Matrices

Needs Assessment - RFI

 Request for Information (RFI) developed Overview of Project Ability to provide all printer services needed Analyze needs of all 7 companies Recommend actionable improvements Drive productivity improvements in print processes Assist LNA with Green initiatives Experience w/similar multi-company structures preferred

Needs Assessment – KPI (aka CTQ – Critical to Quality)

 Key Performance Indicators (KPI) developed Short List – Qualifying Questions (Y/N) Vendor Qualifications Company History; Performance Metrics; Actual Performance Data; Experience; Add’l Terms & Conditions Scope of Work Requirements; Assumptions; Risk Assessment; Differentiators; Proposed Tools; Subcontractor Relationships Estimated Implementation Steps & Timeline

Tools – Project Tracker

 Microsoft Excel File  Used to track: Meeting attendance Project steps/status  Sent out to team each week with next week’s agenda & previous meeting’s minutes  Submitted as monthly update to LNA management team

Copyright 2008 – Legrand – All Rights Reserved

Master Spec

 Included Details from all 7 Companies  Separate Web & Sheet Specs  Team Agreed on Classification / Project Names Catalogs; Pricebooks; Brochures; Cutsheets; Sell Sheets; Installation Instructions; Spec Sheets; Stationery Elements; Specialty Items (Counter Mats, Wall Charts, etc.)  Did NOT include packaging in this review

All 7 Companies Printed Item

Spec List

Spec Details, by Company

Narrowing the Field

Initial RFI / KPI – results analyzed by team Resulted in elimination of 10 of the 16 vendors 16-page RFP & Master Spec was sent out to 2 Web printers & 4 Sheet printers References checked WebEx - Vendors ask specific clarifiying questions on the RFP Two week deadline – Completed RFPs & printed samples submitted

Tools - Decision Matrix

 Used by each team member to rank vendors from 1-10 in 9 key areas – no ties allowed Catalog Printing Sheet Printing POD Model Digital Workflow Process Customer Service Sustainability Reporting Disaster Recovery Plan Partnering for the Future

Paper Sub-Buy

 During the evaluation process, we decided to manage our own paper buy  Printer quotes we requested were for production only, no paper  Negotiated a separate paper contract for additional savings

Final Factors

 Vendor presentations on-site to our team  Site visits to vendors by our team  Review onsite scores  Final Decision Made  Contract Negotiations with Finalists  Contracts Signed  Exit Letters Sent to Incumbent Partners  Implementation

First Year

 Implementation Plan – Q4 of 2008 and Q1 of 2009  Quarterly Program Reviews with CGX, Paper Vendor, LNA Purchasing & LNA Lead Buyer  Daily Report Developed for Each LNA Entity by CGX (includes Paper)  Quarterly Report of all 7 companies sent to top management  Weekly Update Conference Calls Established (include CGX, Agency, Designers, Fulfillment House, LNA Lead Buyer)

Daily Report

Daily Report

Lessons Learned

 Critical Factors in the success of a project of this magnitude Open Minds Consensus of Core Team Agreement by each Entity’s Upper Management Establish Regular Communication Sessions Establish Reporting Processes Establish Exception Rules / Approval Process Open Communication throughout the process

Tangible Project Results

 Goals set were based on the 2009 spend  On a Spend of $1,500,000

Savings achieved: $338,000

Critical Results of this Initiative:

 Seven independent companies now working together as Legrand  One master vendor relationship with local options  Documented Purchasing SOPs with contracts  LNA SOPs - job tracking, spec collection, quarterly reporting  LNA lead buyer  Volume discounts = achieved savings  Regular communications sharing best practices between Legrand, North America and Legrand Global  Paved the way for integrated, consistent branding across LNA

The End‌

Questions???