Linx Supply Chain Optimization Service
Transform your company from a bulk vendor to a world-class solutions provider
To help companies overcome the challenges of becoming a WORLD-CLASS advanced materials supplier, Linx offers innovative insight and solutions for meeting quality management system requirements. Linx Supply Chain Optimization Service transforms the perception of quality systems as cost centers to quality as a differentiator. A differentiator that your customers are willing to pay for, increasing revenues and bringing your company to the next level in the supplier food chain. In addition, quality gives your company an operational advantage by significantly reducing waste and conserving resources.
Why Supply-Chain Optimization?
The current market trend is to push supplier quality deep into the supply chain. End-users are strategically selecting suppliers who have systems that help them avoid costly firefighting by pre-emptively qualifying the supplier and associated supply chains. As a result, some end users have developed collaborative programs that are firewalled and confidential, while others are demanding more information with an expectation of sub-supplier transparency for the whole supply chain.
World-class materials suppliers recognize the value of appraisal and mitigation early with the cost of failure to meet quality expectations estimated at 20 - 40% of business costs. In contrast, the cost to eliminate failure mode at customer only 5 - 10X the preventative cost. The bottom line results? Improving quality improves the bottom line and increases profit margins.
How do you optimize your supply chain?
To optimize the supply chain, materials suppliers should set up audit trails to improve overall service performance as well as set up effective audit trails for all sub-suppliers. This may lie within the capability of large suppliers, but small and medium size suppliers may not have the expertise to develop acceptable supply change qualification systems.
Linx Consulting Supply Chain Optimization Service
Companies at all levels in the value chain need help establishing and managing quality systems and excursions. Linx can help you understand the appropriate scale and cost for a supply chain optimization (SCO) program for your company, and create a program to meet your needs.
Linx Consulting offers solutions to all participants that are designed to:
Linx Supply Chain Optimization Service Overview
Key Deliverables Enable Optimization
- Make informed decisions around product line management
- Enables end-users to assess and select strategic partners for next generation materials development
- A critical component of due-diligence supporting M&A activities
Supply Chain Optimization Scenerios
Here are some examples of Linx SCO solutions that can be implemented to help companies monitor and track the cost of quality:
Bring desired supplier up to required quality standards
Solution: Linx performs client supplier initial gap assessment, assessed supplier then hires Linx to address gap areas and prep for qualification audit.
Due diligence for acquisition of materials supplier
Solution: Linx performs technical assessment of targets capability to meet proposed industry technical deliverables, report serves as a component of due diligence.
Identify critical supply chain baseline
Solution: Linx performs baseline assessment on list of suppliers, ranking them and highlighting areas for improvement vs. industry normal.
Not enough staff to complete detailed assessments in short time frame
Solution: Linx supplements existing quality team, acting as an extension of internal team to complete audits and establish roadmaps for gap closure.
Small supplier with limited quality staff
Solution: Linx acts as quality representative on a contract basis.
Linx Supply Chain Optimization Services
- Quality system auditing or pre-audit assessment
- Supplier quality system benchmarking
- System Strategic Benchmarking
- Excursion Management
Verification of systems and adherence to those systems is at the core in maintaining a culture of quality and continuous improvement. Quality system auditing is a program for materials manufacturers to asses its ability pilot and ramp new suppliers or materials.
Audit Program Deliverables
- Development of Customized Audit Templates
- Field Audits of Supplier and critical component suppliers
- Analysis & Recommended Prioritization of Needed Improvements
- The assessment begins with a questionnaire sent to the audit target from the customer.
- The on-site portion consists of site inspections and detailed discussions of selected portions of the assessment checklists.
- A final document is presented to the customer highlighting key findings and any recommended improvements.
The advanced materials manufacture’s quality system strength is limited by the capability of its suppliers. Advanced materials formulations are complex and many use components from a variety of suppliers, typically not supplying solely to the electronics market. Periodically it is advantageous for an end-user to asses the aggregate ranking of its supplier base. The benchmarking program allows a customer to rank its overall supplier performance vs. best known methods and suppliers not in the customers supply chain.
Benchmarking Program / Deliverables
- Development of Customized Benchmarking Templates and Focus Areas
- Development of Customized Audit Templates
- Field Audits of Suppliers
- Analysis and Comparison to Best Known Methods
The customer and Linx agree on current supplier and extra-supply chain data sets – Peer Benchmarking is also possible in this program.
- The supplier audits follow the standard audit methodology.
- A final document is presented to the customer aggregating the data to present an assessment of overall supply chain health, gaps and feedback from the participants concerning the customers systems.
Linx provides services directly impacting the top and bottom lines. Typical interface points are at the Director and Manager level.
- Assistance in systems optimization or set-up
- Need to understand and integrate the "semiconductor philosophy" into business systems
Linx works in this capacity to provide senior leadership and the board with information to enabling executives to make informed decisions impacting growth and operational strategies.
- What is the correct size of a quality organization of peers in this industry
- What is the real quality spend vs. sales revenue of peers in this industry
- How are the successful business units aligned who are supporting this industry
A materials development and integration program is inherently risky, but the rewards for a successful ramp are substantial. During the final selection process and high volume ramps, end-users depend on their materials suppliers to identify and eliminate material variation with minimal interruption or involvement from the end users technical teams.
Occasionally, an interaction in the integrated process requires the end-user to devote considerable resources to work with the supplier to contain, identify and systematize fixes for deviations of form, fit and function. This is impactive to suppliers, and failure to manage this sours the relationship with the end-user, resulting in loss of future business as well as disqualification for the current process(es).
Excursion Management Program
- Define parameters required for excursion closure requirements
- Attend excursion task force meetings (internal, end-user or both)
- Provide excursion management tools / techniques and guidance to customer excursion manager
- Final report documents root cause and suggested gap closure activities
- Join customer internal problem solving team
- Review data and evaluate completeness of data already gathered to identify problem
- Review containment activities for effectiveness
- Once root cause is identified, work with customer team to implement fix
For more information about Linx Supply Chain Optimization Service, call Kyle Flanigan or at 503-519-8776.
Case Study in Supply Chain Optimization
The Benefits of Using a CoQ Indicator to Reduce Costs
A leading materials manufacturer developed a cost of quality (CoQ) model to determine the cost of quality to their company and evaluate the benefits of developing a supply chain optimization program. The CoQ cost model implemented was developed by a world leading chip manufacturer, and is analogous to the model used by Linx Consulting supply chain optimization expert Kyle Flanigan. Read the case study
Learn more about Supply Chain Optimization
For more information about Linx Supply Chain Optimization Service, call Kyle Flanigan at 503-519-8776.