Name: PowerPoint Presentation
Uploaded: 2023-11-26
Duration: 6 min 56 s
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At the forefront of supply chain resilience, we will relentlessly champion uninterrupted production.

Sourcing strategically, adapting swiftly and building robust supplier networks. We will ensure seamless material flow and empower our organisation to thrive in the face of any adversity.

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Supply chain disruptions are a constant concern with a cyclical impact occurring every 3-4 years. Our supply strategy has been to enhance our resilience by diversifying sources, reducing dependence on a supplier source. Employing a mix of Tier 1, 2, Hybrid and direct manufacturing sources.

While multiple tiers of suppliers and manufacturers have served us, we recognise the need for strategic transformation to ensure continued growth and competitiveness.

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Preferred Payment Terms  Rebate & Settlement discounts  MFR packages  Consignment  Value Add Services  Flexibility  Innovation & Collaboration  Regular SRM

Poor Payment Terms  No Rebate Agreements  No Consignment  Not Flexible  Good for Benchmarking  Opportunities given

Preferred Payment Terms  Rebate & Settlement Discounts  Consignment  Lack of trading history  Close monitoring  Always included in RFQs

Global Pricing Agreements  API Innovation  Group Profile  Innovation & Collaboration  Regular SRM

High Low Low Exposure / Risk Importance of purchase

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Direct

 Texas Instruments – 2024 Spend £2.3 Million

 Tier One

 Anglia Components Plc – 2024 Spend £9.3 Million

 Future Electronics Ltd – 2024 Spend £4.3 Million

 Hybrid

 DMTL – 2024 Spend £1.2 Million

 Tier Two

 Arrow Electronics UK Ltd – 2024 Spend £2 Million

 WPG – 2024 Spend £54K

 Avnet – 2024 Spend £309K

 Rutronik – 2024 Spend £434K

 TTI – 2024 Spend £24K

 EBV – 2042 Spend  £12K

 Microchip Direct – 2024 Spend £900K

Supplier - Recent Activity & Future Direction

Established relationship during the pandemic and encouraged by Generac with global prices.

TI Due to switch from Arrow Electronics. Expected £300K saving on approx. 50 parts with global price package.

Exploring API options for enhanced operations.

Majority of Tier Two business distributed amongst Tier One suppliers.

Tier Two business with Engineering to review and approve.

To grow spend and drive cost efficiency by packaging and aligning Commodities & Manufactures to awarded suppliers, based on Vendor Ratings striving for excellence.

Introduced during the pandemic with alternatives, attractive terms & service.

Providing alternatives which have resulted in promising PEP figures.

Awarded a smaller % of the Tier Two business.

All business tendered amongst Tier One & Hybrid suppliers, spend now reduced with some parts WIP to be reviewed and moved.

To be given the opportunity on specs/RFQ, useful for bench marking.

Will be opened to tender of chosen commodities for 2025 opportunities.

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Throughout the pandemic came shortages and a supply chain at risk, which awarded opportunity. From shortages we worked well with suppliers to identify alternatives and started to grow PEP figures early in 2022. Strengthening relationships, both internal and external, we have been able to negotiate improved prices, packages and steadily grow PEP throughout 2023 into 2024 with strategic supplier alignment. Growing manufacturer packages we will be able to further improve PEP figures for 2024 and intend to open up tenders for 2025.  With yearly tenders we will promote and encourage stronger competition, innovation and profile.

2022

 DMTL - £335K

 2023

 Banked Arrow - £394K Anglia - £242K DMTL - £155K Future - £144K
 Total: £935K

 2024

 Due 2024 Future - £136K DMTL - £66K Arrow - £82K Anglia - £83K WPG: £20K
 Total £387K

 WIP / Pending Tier 2 Tender - £268K Future EAU Cost down - £40K MFR / Disti alignment - £TBC 

 Due 2023 DMTL - £95K Future - £70K Anglia - £22k Arrow - £18K
 Total - £205K


 2025

 Commodity Tender

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Tier One	

 Anglia Components

 Arrow Electronics

 Hybrid

 DMTL

 WPG

 Novosense

 Tier Two

 ST Micro 

 Gemalto

 Murata

 Rossoni

 Bourns

 Vishay

 Analog Devices

 Infineon

 Int Silicon

 Winbond

 Future Electronics

 NXP

 Diodes Inc

 MaxLinear

 Nexperia

 Samsung

 Amtek Technology

 UTC

 Fenghua

 Viking

 AVX

 Rutronik

 Diptronics

 Knitter Switch

 Samwha

 Rubycon

 Nanya Technology

 TTI

 EBV

 Avnet

 Easby

 Ecomal

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Supplier Scorecard Reviews – To measure performance like on time delivery, product quality, responsiveness, and customer support. We intend to hold regular reviews and update scorecards to make data driven decisions.

Continuous improvement – Regular communication and feedback  will be issued and encouraged to foster collaboration and identify areas for improvement.

Industry trends – Staying connected, arranging visits to well-known trade shows. Stepping ahead to stay on top of the latest market news.

Quality 30%

 Complaints 50%

 Communication 25%

 Supply Chain 20%

 Flexibility 70%

 Communication 20%

 Corrective Action 25%

 Pricing 10%

 Terms 70%

 Accounts 5%

 Accuracy 20%

 Cooperation 10%

 Engineering 5%

 Collaboration 25%

 Innovation 25%

 Tech Support 50%

 Logistics 10%

 Packaging 40%

 Documentation 40%

 Cooperation 20%

 OTD 30%

We are implementing an improved supplier rating system which will be updated quarterly and help route RFQs. The supplier performance is scored by key departments. Each key department weighted to ensure we are guiding suppliers down a path of excellence, allowing for a strong SRM framework. We will achieve this by:

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Chose a commodity
 Approved MFRs display ranked by YTD Spend
 The preferred supplier for each MFR displays with their current vendor rating
 RFQ / SPEC can be issued to each MFR/Supplier with a score above 8.
 Supplier type displays for quick decision making

Alignment of commodity to approved Manufacturers and preferred suppliers, ranked by YTD spend. Aimed as a sourcing tool to give guidance and direction based on supplier's performance. Updated every quarter with SRM at the forefront of procurement to ensure cost efficiency, quality & innovation.

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Supplier Consolidation Tier 2 – Tier 1 business - Complete

Review Historic & Forecasted Spend – Complete

Review Contracts & Agreements –EOY 2023

Evaluate existing suppliers & MFR packages by commodity – EOY 2023

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