Karen Schultz, Business DevelopmentWALCO Tool & Engineering

Lockport / Romeoville, Illinois

This presentation is inspired by the marketing team of Bank of America, University of Wisconsin and CASE Western Reserve University Business College

An Appreciative Inquiry Approach to Business breathes life into healthy ecosystems and has proven to be cost

effective and efficient in a more sustainable way. WHOLENESS

Seeing, experiencing, and understanding the world as an integrated, connected system created by the

interactions of all its parts – animate and inanimate!

Discover – Conceptualizes converging trends in supply chain and working capital management.

Dream– Describes client pain points, the ideal world and an envisioned role for participants

Design -Emerging Possibilities – articulates vision and integrated approaches and highlights new possibilities

to address client pain points.Destiny – Create a synergetic level of communication

that talks about where you want to go

Discover – Conceptualizes

converging trends in supply chain and working capital management.

….what we believe to be real in the world is created through our social discourse, through the conversations we have with each other that lead to agreement about how we will see the world, how we will behave, what we will accept as reality.

Serves as a starting point for group discussion and networking

about supply chain management. After this event, I believe the shared

hope is that we have started our conversation that understands more

about where we fit in the supply chain along with others

giving a sense of

Connectivity.

The infamous trail of information open for review and updates…not really too bad but the # of emails can be overwhelming combined with mail that is less important to our day’s success…..

Healthy, viable Ecosystems continuously work toward balance in a natural

approach – those who coexist in an ecosystem work to understand how they

can support balance and look for improvement in that process

Nowhere is this recognition more apparent than in a supply chain A supply chain’s overall efficiency and effectiveness helps define the performance of each participant, and each participants performance is vital to the supply chain. Supply chain collaboration helps drive improved financial performance. This recognition is driving companies to strive for greater supply chain collaboration.

The growing recognition between the “financial” and “physical” side of supply

chains, which together form a larger ecosystem. Achieving this ideal

necessitates tight integration between a supply chain’s physical and financial

flows.

Network thinking: New ways of organizing

“Analysis means taking something apart in order to understand it, systems thinking

means putting it into the context of a larger whole.”

-Fritjof Capra, The Web of Life

There are paradigm shifts in the supply chain and corporate ecosystems for balance.

Companies are converting manual paper based processing to automated electronic processing using more bar coding that holds more information.

Outsourcing for product and services work went to global outsourcing and now there is a trend to domestic in sourcing due to currency rates, lean thinking, risk, time and transportation costs.

Use of global trading partners lengthens payable and receivable cycles.

Intensified price competition Changes in risk profiles Communication challenges

The longer the supply chain in both participants and physical distance, time difference and business practice brings more potential fragmentation in the ecosystem.

Challenge Supply Chain Connect Capability

Lack of visibility on inbound shipments from suppliers

Slow, Error prone receiving processes

Labor intensive planning, tracking, and reconciliation management processes

High inventory levels (buffer stock)

Presentation of all shipment information provided by your suppliers matched to your orders

Ability to gather information from any of your internal systems, including bar code readers, RFID devices, or internal databases

Ability to interface with almost any system, read translate any electronic data format. Integrates with order management, invoicing, demand planning modules, real time inventory data including minimum maximum current inventory, consignment stock and on rider positions.

Human performance, skill sets and available personnel is also tied into scheduling capacities

CommunicationBusiness Intelligence

Effective communication, including timely sharing of critical information, can break down internal silos and build stronger cooperation between extended team members (buyers and sellers)

To the extent to which supply chain participants can gain access to value added information, they can perform analysis to gain insight into how to improve profit margin and working capital, mitigate risk and optimize financial performance across end to end supply chain.

Dream– Describes client pain points, the ideal world and an envisioned role for participants

Supply chain integration

Keep the door of communication wide open for change

Help each other with synergetic Conversations from concept, to design, into process and throughput, depending on industry, You might also talk about the cost of missed delivery, etc.

Talk about target pricing effects on target pricing. What do you need to sell the product for and what is an economical cost of each step to get there? If value is high, how many can you purchase to reach the target pricing? What are the hidden costs in inventory, delivery, lost time, an added sale, etc. What about kanbans, sharing inventory, blanket orders, etc. Understand learning curve formulas and how that plays into the overall pricing. Designing off the shelf components into the design vs. a more custom part, or possible module systems into the design?

Internal Communication Challenges

Disconnects between sourcing, buying and payment departments.

Disconnect between production and finance

Another possible disconnect is foreign office and finance

Need: streamline and define business processes, educate on processes (map it) internally and standardize data formats

Builds defensive mechanisms rather than collaboration◦ Too many involved◦ Someone left out◦ Information missing

External CommunicationChallenges

Automation of communication processes

Access to each other’s systems

EDI (electronic invoice feeds –information flow, on line logistic solutions verifying customs and product harmonization codes (time consuming) to insure accurate costs

Despite automation communication remains fragmented / duplication or incorrect end receiver due to that company’s organizational chart, or other business model shifts, changeover, etc.

Appreciative Inquiry Approach to Communication

Communication is the most important aspect of the supply chain and the most messy, as some put it. Why is this felt? Because we are brought up in competition rather than collaboration. Competition belongs in innovation and consumer choice, not in the supply chain team. The ideal solution standardizes communication to facilitate on line collaboration and supply chain connectivity. It needs a sense of automation right beside a supportive relationship that understands the possibilities and has a shared image that drives them in the same direction.

Providing value added information to optimize throughput, understanding, optimize payable s and receivables, etc. can bring high cost savings.

Online communication and its benefits need careful management

It is not an easy task to understand cost factors but when there are benefits to one side or another, how will the communication of shared benefits be shared? If communication is lacking it will not even be understood how to provide this support to one another and someone will miss out on a beneficial savings that can be invested in a shared benefit longer term.

Understand what it takes to both remain healthy and financiallyfit for one another. Understand costs, Cash flow is important for all parties involved in supply chain

Learn from each others business models, Know and depend on each others strengths

Grow good business practices together, Build trustful team relationships

Be fair in your pricing – be economical , be able to grow with one another and invest in one another

Throw out defensive communications that create obstacles toward what you both have agreed upon

Stick to your contract and be open when things are not going well

Design Emerging Solutions –

articulates vision and integrated approaches and

highlights new possibilities to address client pain points.

Connectivity

When I receive an order

When I need your support most

Who should we have at the table

Who effects who most Why is the large

picture needed?

Collaboration

I heard you say Lets look review the

process and through put, schedules and logistics that affect our results

When we find a savings where is it best used?

This form has to be discussed because of the cost of time

Support the shift from silo cultures to a collaborative environment

Move from customer / supplier mindset to extended team members as if you were vertically integrated and realize the savings to both parties

Work closely with procurement and logistics Work toward green initiatives together Share training opportunities Strengthen collaboration with visibility Work toward improving the integration of financial,

informational and physical supply chain flows to manage total costs and optimize performance for total team effort

Understand the impact of each others actions and strive for efficiency and effectiveness of the overall supply chain

Collaborate for mutual benefit Participants that are able to function strategically can

optimize financial performance

The bottom line of an enhanced supply chain collaboration is improved working

capital for extended team members (buyers and suppliers).

This is the shift in supply chain management and strategic financial strength.

Advance Collaboration, Improve Performance◦ Build on a strong foundation – shared vision◦ Create an understanding base of communication ◦ Agree to continue to learn and support one

another◦ Share resourcesBe appreciative = Take the time to discover,

dream, design and create the destiny you both want to aspire toward. Create the image that will drive and inspire motivation and productivity.

Destiny – Create a synergetic level of communication that talks about where you want to go