Streamlined Supply Chain: Maximized Results

Micki M. MaynardProject Manager & Lead Print Buyer

Legrand, North America

Micki M. Maynard

Started out in publishing in 1978 Specialty – Large Project Management McGraw-Hill – Established an In-House Publishing Group

Capital Cities/ABC – Transitioned from traditional typesetting/mechanicals to desktop publishing

Wiremold - Established an In-House Publishing Group; Became World Class Kaizen & Lean Thinking Leaders

Legrand Limoges, France – Acquired Wiremold in 2000

How Would You Go About Adding $338,000

to your print budget?

The Challenge: Legrand Global Purchasing Mandate to Achieve Print Savings

Legrand, North America (LNA) comprised of seven independent companies

Seven long-standing vendor relationships Seven unique purchasing practices

(No longer quoting, except on very large projects)

No LNA-wide standards on job tracking, spec collection, quarterly reporting

No LNA lead buyer No volume discounts on 2007’s $3 million spend

The Scope

Determine needs - web & sheet printing

Investigate standardized stock options

Investigate Print-on-Demand (POD) options

Develop tracking/reporting processes

Construct/negotiate contracts

Implement across all of LNA

The Support

France – Global Purchasing Management

North America – Executive Management

Individual LNA Entity MarComm Management

Individual LNA Entity Delegates

LNA Purchasing Champion

Total Team of 8 committed members

The Timeline

Project Challenge Accepted March 2008

Implementation of New Program October 2008

Program Fully Operational January 2009

Milestones

Vendor Selection / Data Collection

Each LNA entity ranked & submitted the vendors they wanted team to consider

Total of 16 vendors were consideredSheet & Web

Each entity collected 2007 spend / spec detailsCatalogsSheet Projects

Critical Tools

Request for Information - RFI Key Performance Indicators - KPI Project Tracker Request for Proposal – RFP / Master Spec Decision Matrices

Needs Assessment - RFI

Request for Information (RFI) developed

Overview of ProjectAbility to provide all printer services neededAnalyze needs of all 7 companiesRecommend actionable improvementsDrive productivity improvements in print processesAssist LNA with Green initiatives

Experience w/similar multi-company structures preferred

Needs Assessment – KPI(aka CTQ – Critical to Quality)

Key Performance Indicators (KPI) developed

Short List – Qualifying Questions (Y/N)

Vendor QualificationsCompany History; Performance Metrics; Actual Performance Data; Experience; Add’l Terms & Conditions

Scope of WorkRequirements; Assumptions; Risk Assessment; Differentiators; Proposed Tools; Subcontractor Relationships

Estimated Implementation Steps & Timeline

Tools – Project Tracker

Microsoft Excel File

Used to track:Meeting attendanceProject steps/status

Sent out to team each week with next week’s agenda & previous meeting’s minutes

Submitted as monthly update to LNA management team

Copyright 2008 – Legrand – All Rights Reserved

Master Spec

Included Details from all 7 Companies

Separate Web & Sheet Specs

Team Agreed on Classification / Project NamesCatalogs; Pricebooks; Brochures; Cutsheets; Sell Sheets; Installation Instructions; Spec Sheets; Stationery Elements; Specialty Items (Counter Mats, Wall Charts, etc.)

Did NOT include packaging in this review

Printed ItemAll 7 Companies

Spec ListSpec Details, by Company

Narrowing the Field

Initial RFI / KPI – results analyzed by team

Resulted in elimination of 10 of the 16 vendors

16-page RFP & Master Spec was sent out to 2 Web printers & 4 Sheet printers

References checked

WebEx - Vendors ask specific clarifiying questions on the RFP

Two week deadline – Completed RFPs & printed samples submitted

Tools - Decision Matrix

Used by each team member to rank vendorsfrom 1-10 in 9 key areas – no ties allowed

Catalog PrintingSheet PrintingPOD ModelDigital Workflow ProcessCustomer ServiceSustainabilityReportingDisaster Recovery PlanPartnering for the Future

Paper Sub-Buy

During the evaluation process, we decided to manage our own paper buy

Printer quotes we requested were for production only, no paper

Negotiated a separate paper contract for additional savings

Final Factors

Vendor presentations on-site to our team Site visits to vendors by our team Review onsite scores Final Decision Made Contract Negotiations with Finalists Contracts Signed Exit Letters Sent to Incumbent Partners Implementation

First Year

Implementation Plan – Q4 of 2008 and Q1 of 2009

Quarterly Program Reviews with CGX, Paper Vendor, LNA Purchasing & LNA Lead Buyer

Daily Report Developed for Each LNA Entity by CGX (includes Paper)

Quarterly Report of all 7 companies sent to top management

Weekly Update Conference Calls Established (include CGX, Agency, Designers, Fulfillment House, LNA Lead Buyer)

Daily Report

Daily Report

Lessons Learned

Critical Factors in the success of a project of this magnitudeOpen MindsConsensus of Core TeamAgreement by each Entity’s Upper ManagementEstablish Regular Communication SessionsEstablish Reporting ProcessesEstablish Exception Rules / Approval ProcessOpen Communication throughout the process

Tangible Project Results

Goals set were based on the 2009 spend

On a Spend of $1,500,000

Savings achieved: $338,000

Critical Results of this Initiative:

Seven independent companies now working together as Legrand

One master vendor relationship with local options

Documented Purchasing SOPs with contracts

LNA SOPs - job tracking, spec collection, quarterly reporting

LNA lead buyer

Volume discounts = achieved savings

Regular communications sharing best practices betweenLegrand, North America and Legrand Global

Paved the way for integrated, consistent branding across LNA

The End…

Questions???