Supplier Networks Transformation Toolset, Version 1.0

The Supplier Networks Transformation Toolset was developed by LAI's Supplier Networks Working Group and released as version 1.0 in March 2004.

Supplier Networks Transformation Toolset
Available to the public.

Supplier Networks Transformation Toolkit Roadmap Tool
Available to the public.

Supplier Management Self-Assesment Tool
Available to the public.

This toolset represents the 1.0 version of the LAI Supplier Networks Transformation Toolset (Supplier Toolset), which provides an integrated implementation framework for developing lean supplier networks. The Supplier Toolset was developed in response to an important need expressed by LAI consortium member companies, and is designed to address the following types of key questions:

• What are lean supply chain management concepts, practices and metrics?
• How do we develop lean supplier networks?
• How do we assess where we are in evolving lean supply chain management capabilities?
• How can we define our own enterprise's lean expectations in the area of supply chain management that we can directly communicate to our suppliers?
• How can we anticipate and define the emerging expectations of our customer companies in the area of supply chain management, so that we can accelerate our own internal efforts (e.g., as a supplier) to meet those customer expectations effectively?

What are the benefits?

Developing a lean supplier network is a critical enabler of achieving enhanced competitive advantage. This is made possible through significant gains in terms of lower costs, higher quality and reduced cycle time. Development of an integrated and efficient supplier network is a central determinant of greater value creation for multiple enterprise stakeholders.

Who Should Use It?

Supplier Networks Transformation Toolset
Available to the public.

The Supplier Toolset is intended for use by a cross-section of an enterprise's top-level, as well as mid-level, leadership who are collectively responsible, in one way or another, for supply chain management. This includes people from virtually all parts of the enterprise in engineering, manufacturing, contracting, quality, procurement, supplier development, and other areas. Designing and managing lean supplier networks takes the whole enterprise, in sharp contrast with the outdated practice of consigning supply chain management functions narrowly to the traditional procurement, material or purchasing department.

The Supplier Networks Transformation Toolset (Supplier Toolset) updates and expands an earlier framework for lean supply chain management for the aerospace industry issued by LAI in 1995. This earlier framework, developed by LAI's former Supplier Systems and Relationships Team, defined a lean supply chain management architecture encompassing overarching, enabling, supporting and operating practices as well as metrics.

The framework consolidated prior LAI research results as well as those obtained under the auspices of MIT's International Motor Vehicle Program (IMVP). The accompanying Powerpoint presentation ("Supplier Networks Transformation Toolset") has been developed to give an overall description of the Supplier Toolset. You are welcome to download it as a ready-to-go ("off-the-shelf") briefing package to inform others, such as other team members or enterprise leadership at various levels, about the toolset and its implementation within your respective organizations.

The Supplier Networks Transformation Toolset is comprised of two key components which are integrated and should be used jointly:

The Roadmap Tool

Supplier Networks Transformation Toolkit Roadmap Tool
Available to the public.

This tool represents a "how-to" implementation guide that lays out a structured process for evolving lean supply chain management capabilities in order to build lean supplier networks. The Roadmap Tool is linked to the Transition-to-Lean Roadmap (TTL) at the enterprise level and follows a process architecture similar to that used in the TTL. It defines major building blocks and specific implementation steps. It also identifies key interactions and major feedback loops.

In addition, the tool provides implementation aids ("Roadmap Explorations"). For example, for each major building block, it defines inputs, outputs, barriers, enablers, potential metrics, and tools and methods. At the same time, it discusses a number of issues and questions that are commonly faced in such an implementation effort (e.g., why, what, who, how, where, when) and identifies potential tensions or conflicts that can be anticipated and proactively addressed.

Finally, the Supplier Networks Transformation Toolkit Roadmap Tool can be used to accelerate on-going lean supply chain transformation efforts. It can also be used by companies just starting their journey to develop lean supplier networks.

The Supplier Management Self-Assessment Tool

Supplier Management Self-Assesment Tool
Available to the public.

This tool represents a framework that companies can utilize to conduct a self-assessment of how much progress they have made in developing lean supply chain management capabilities. In addition, it can be used to establish future performance targets and identify further improvement opportunities. This tool differs from supplier lean assessment tools used by many aerospace companies, which focus on an assessment of the internal lean and six-sigma capabilities of individual supplier companies, such as the extent to which they have implemented basic lean manufacturing practices. Such tools take many forms, ranging from simple diagnostic instruments to detailed assessment tools. They are often used by primes and major suppliers as part of their supplier development process. The Self-Assessment Tool does require such supplier lean assessment steps, but only as part of a much larger and comprehensive framework for designing and managing lean supplier networks.

The Self-Assessment Tool is linked to the Lean Enterprise Self-Assessment Tool (LESAT) and follows a similar approach. It defines eight overaching practices governing lean supply chain management and thirty enabling practices. The tool identifies five capability levels and defines the lean supply chain management attributes for each enabling practice at each one of these five capability levels. The tool provides, for each overarching practice, diagnostic questions, lean indicators and potential metrics. The tool is presented in a user-friendly Excel format, which provides an automated self-scoring feature that generates summary charts based on the self-scoring results and future improvement targets.