lotus Pure driving 01 №
August 2014 | Newsletter for Lotus Suppliers
Welcome to the first issue of our new supplier newsletter Jean-Marc Gales Chief Executive Officer, Group Lotus plc Welcome to the new issue of PURE DRIVING, a dedicated newsletter for the Lotus Supply Chain. Over the coming months this newsletter will bring you not only news and updates from the factory, but also information on issues that affect you directly. Information on how you can contribute to becoming one of Lotus’ preferred suppliers and what you can do to help us improve downtime in our business, improve our cost base and ensure a high quality standard for our customers. There will be information on new production, delivery criteria, and ways to help ensure that our businesses collaborate better and work in an improved and aligned way, improving our industry competitiveness.
seen its best financial year Q1 sales in three years, but we have also just completed the best production quarter since Q2 FY11/12. Our July results show the best car sales volume since March 2011. We are resolute in our determination to see this continue. Your role is key to this. As our commercial partners, it is important we work together for our mutual benefit and for the benefit of all Lotus customers around the world. We look forward to working with you in the future.
I am pleased to tell you the Lotus business is improving. Not only has the business
Your help required Many of you will be aware that we are now pursuing a vigorous cost reduction programme for which we require your help and assistance. We are looking for radical ideas that could reduce Lotus’ overall costs of the vehicles we produce by any possible method. A recent example of such a saving was identified by the supplier of our road wheels in which they highlighted that with very minor changes to the styling of the wheels that the time required to machine the wheel could be drastically reduced resulting in significant potential savings.
Lotus manufacturing staff support supplier Lotus manufacturing personnel have been recently seconded to one of our major body panel suppliers, who has recently taken on significantly more work for the company.
We are looking for savings in all aspects of our business operations across the company.
Lotus has supported the handover and commissioning of the tooling and accelerated volume ramp-up while newly appointed staff are trained on the intricacies of producing these additional parts for Lotus.
We see all of our suppliers as partners in our business enterprise and genuinely want to move forward in a spirit of co-operation for our mutual benefit.
To ensure the highest levels of quality, staff at the business have undergone training in the Lotus processes ultimately ensuring Lotus build volumes are maintained.
Any ideas or opportunities you can put forward, especially if this gives us some other product performance or weight saving benefit will be very positively received. Please email your suggestions to: agreen@lotuscars.com
The supplier has been extremely proactive and supportive, recruiting additional labour and rearranging production facilities to aid our requirements and strengthen its commercial relationship with Lotus.
Suppliers sign
up to PPCSB
During the recent Lotus Supplier day, Interim Head of Purchasing Karen Bloodworth shared Lotus’ company plans to transfer the accounts of high value Lotus production suppliers to PROTON Parts Centre (PPCSB). We are pleased to announce that 75% of the total production expenditure is being handled via PPCSB. Payments stability together with the high creditworthiness of PPCSB has given our supplier network improved payment terms and supply scheduling. These improvements in financial steadfastness and payments frequency have been mirrored for suppliers not yet transferred to PPCSB.
Preparation is key With increased production and sales growth for the first financial quarter FY14/15, Lotus is brimming with good news. This means we need staunch preparation to stay one step ahead, going forward. One of the ways to ensure Lotus production build targets are met is to hold a level of stock at the plant which provides a suitable buffer against delays in supply outside of our control. To help prevent shortages on the production line material control are scheduling all ordered goods to be on site at Lotus four weeks prior to fitment. We have achieved this for 80% of our components which together with the improved financial stability gives us a high level of confidence we will deliver our production plans in full.
Changes within purchasing Following the successful transition over to PPCSB and the stabilisation of the supplier accounts, interim purchasing head, Karen Bloodworth has now resumed her role as Head of Legal, Group Lotus plc. Colin Peachey has taken up the position of acting Head of Purchasing with Andy Green as acting Deputy Head of Procurement.
October supplier event This Autumn will see the next Lotus Production Supplier Event take place. The programme is envisaged to improve overall quality and pure driving experience for our customers, whilst reducing the cost of vehicle manufacture. Your input and support with this is key. More details on this will follow in due course.