In the Supply Chain

INnovation

in action

Presentation Road Map

Advantages of Active Innovation in the Supply Chain

Sourcing Suitable Suppliers

Encouraging Active Innovation

Innovation in Action

Real Results of Active Innovation

News Talk

‘The future of manufacturing innovation is dependent on active participation from the supply chain’ –

SupplyChainStandard.com

News Talk

Nokia attribute their recent resurgence in the handheld telephone market to active participation from their

supply chain.

EfficiencyGet products to market faster. Increased revenues and profits earlier. Improve success rate of new products by making the innovation process stronger.

ExpertiseUncover more opportunities through reaching out to expertise of a completely different specialization to that of your R&D departmentExperts from different areas are able to objectively evaluate and foresee issues/problems

Diversification

Diversify risk, by sharing uncertain technologies with

suppliers.

Advantages of Active Innovation in the Supply Chain

Mankind’s collective knowledge is constantly expanding.

Science and technology is advancing more rapidly than ever.

Businesses cannot expect to retain all of this knowledge in house.

They must look to external partners in their supply chain to acquire this

expertise.

Essential to the future of Manufacturing

How to Encourage your Suppliers to Innovate for you

Inform Suppliers of your GOALS1

ALSO state your reasons for trying to achieve these

goalseg. If the market dictates a ceiling price,

you must communicate this to your supplier. Otherwise, they may feel you are simply trying to pressure them on

price.

eg.

Being the driving force behind the improvements puts them in a fantastically strong position to win the work.

Able to quickly easily move into production because they’ve already got tools, fixtures, programs from development.

Their expertise has contributed to the design – processes will match their equipment, increasing efficiency to manufacture.

Inform Suppliers of the BENEFITS2

1

2

3

Active Innovation in Action

Case Study 1 – GCA Cable Clamp

The Requirement: GCA wanted to reduce their inventory by innovating a single clamp that would attach a cable to all 3 different sizes of beam.

The Approach:Design ClampManage ProductionQuality Control

The Background:GCA manufactures a special purpose cable clamp, for use in the telecoms market, destined to supply to their pool of blue chip international clients. At the time, a different clamp was being used for each of the 3 different sizes of beam.

Active Innovation in Action

Case Study 1 – GCA Cable Clamp

Diamond designed a Single clamp, which incorporated all of the required features, amalgamating them in a way that did not reduce the individual design functionality and where possible improved added functionality. 1 clamp that does the job of 3.

Diamond advised on appropriate manufacturing processes.

The design was finalised by Diamond and approved by GCA. Then a suitable manufacturer was chosen.

A number of worldwide locations were researched and the decision was made to outsource manufacture to a qualified supplier in North-Western China.

The Results

• 60% reduction in stock waste at end of product life cycle

• Less cash tied up in stock - Improved cash flow

• 60% reduction in inventory

• Economies of Scale Larger volume of single purchase, thereby reduced cost

1 Clamp that does

the job of 3

Case Study 1 – GCA Cable Clamp

The Benefits

Case Study 2 – Pure Bike Co.

Active Innovation in Action Pure Bike Co. have in depth expertise and product knowledge of BMX pedals.

Diamond have expertise in manufacturing and a dynamic supply chain.

Pure Bike Co. are surveying the market, finding the best design features.

Diamond are designing new BMX pedals with Pure Bike Co. input.

The Background:

Case Study 2 – Pure Bike Co.

The Benefits

• Machining processes cut down from 3 to 1 – Cost Saving.

• Quick assemble of the pedal to the crank

• Weight saving from use of optimum materials.