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Collaborative Supply Chains

Open Book Collaborative Cost Models

The collaborative open book cost model process is set up to enable the supplier’s support. This process achieves this goal by putting first the key requirements from a supplier. When the supplier and customer agree on a consistent competitive cost model, that’s when the real collaboration begins. The supplier achieves one of their most important goals of more sales with a strategic customer. The customer gets a fast reacting and consistently competitive cost model that is easy to manage with strong waste identification.

Open Book Cost Model Program

  • Part of the “Ladder to Partnership” Program
  • Create a new culture of collaborative cost management and influence for the supply base

Benefits for Suppliers

  • Transition to Partner Level Supplier
  • First Access to Business
  • Current production resourcing
  • Outsourcing from Internal
  •  NPD (new product development)
  • Fast Sourcing Process, Reduced Quoting Work
  • Reduced Market Tests, Replaced with Stronger Waste Identification
  • Early Design Input with Customer Product Development for DFM (design for manufacturing)
  • Potential for “Pre-Sourcing” (sourcing without drawings, No RFQ)

Cooperative Open Book Process with Suppliers

  • Don’t go below supplier’s costs
  • Go thru iterations to get the Costing Tool accurate
  • Supplier has final approval
  • Customer must also approve
  • Developed on actual, expenses, costs and plant floor operational metrics
  • Identification of waste and continuous improvement opportunities