... benchmarking itself for best-in-class performance
Ted Augustine, Director, Purchasing North America, The Goodyear Tire & Rubber Company. Ted Augustine is a seasoned supply chain practitioner with more than 30 years of industry experience in the dot.com, consumer, food service, consulting and steel sectors. When he joined Goodyear North American Tire in 2002, Augustine envisioned the company's 21st century supply chain performing as a strategic entity, having an impact on all spend and delivering on aggressive targets that directly support company goals. Beginning in 2003 Augustine has helped lead Goodyear's supply chain through a major transformation from a tactical warehouse and transportation environment reporting to the manufacturing division to a highly functional, strategically focused order-to-cash standalone entity that has been recognized as best-of-breed in the tire industry sector by an independent benchmarking firm.
Augustine and his team redesigned Goodyear's logistics center and provider network to ensure they are appropriately sized and positioned to meet customer needs. Through a detailed RFQ process, they narrowed third-party providers from five down to one. In parallel, they reduced their locations from 22 to 17, with 15 to be managed by the single third-party provider. Both changes were rolled out in six months without any disruption to customer service. To optimize performance, Augustine's team developed a velocity-based stocking strategy that centralized all slow-moving products and allowed them to increase speed of service and carry deeper inventory of the fastest moving products. To aide in production planning and maintain the proper mix of inventory, the team deployed a yard management system that provided greater visibility to yard capacity, reduced penalties and increased efficiency, allowing carrier providers to meet Goodyear's needs while managing cost.
Augustine and his team also tackled legacy relationships with freight forwarders, steamship lines and freight carriers to drive efficiency, reduce costs and improve visibility and service levels. The team narrowed the number of ocean carriers from a total of 36 to six core carriers and 12 niche carriers, enabling Goodyear to increase the volume of transactions with each freight forwarder and strengthen their negotiating power. To zero in on opportunities to refine their indirect procurement process, Ted engaged a 4PL to optimize Goodyear's overall logistics solution and proactively manage providers. Use of a 4PL has helped Goodyear to leverage additional resources and technology, enabling them to accomplish their goals while reducing the overall cost of running their logistics department.
The impact of these transformations has been widely visible, and the supply chain organization is increasingly being seen as a strategic enterprise throughout the company. Goodyear's chairman and CEO, Bob Keegan, summarized the company's global business strategy in a set of guiding principles called the "Seven Reasons to Believe in Goodyear," which included the company's supply chain and its ability to ensure that orders are processed on time, in full and with no errors.
Goodyear's supply chain continues to evolve and transform itself to meet the Chairman's goal. Augustine is now tasked with the goal of centralizing all indirect spend within a shared service organization and platform, enabling it to impact more spend and deliver significant savings to support company objectives.
... providing higher service levels at lower total cost
Doug Eckrote, Senior Vice President, Operations, and Lisa Tegtmeyer, Senior Director of Distribution Operations, CDW. In the past Online IT retailer CDW took a hit on deliveries to the West Coast from its headquarters distribution center in Vernon Hills, Ill. Eckrote and Tegtmeyer headed a project to open a state-of-the-art Western Distribution Center in North Las Vegas, Nev., improving the company's capacity for shipping IT products with speed and accuracy to customers out West, while cutting express shipping costs by 40 percent.
2008 Pros to Know Team Award
Cardinal Health's Healthcare Supply Chain Services Team. Team Members: Mike Duffy, Executive Vice President, Operations; Dave Strizzi, Senior Vice President, Warehouse Distribution; Vicky Perryman, Senior Vice President, Customer Service; Jon Giacomin, Senior Vice President, Inventory Management; Rob Pantano, Senior Vice President, Operational Excellence.
In today's rapidly changing healthcare industry, providers of care face unyielding pressure to improve quality, maintain operating margins and lower costs. Reaching these goals requires a relentless focus on making healthcare safer and more productive. And that's the mission of Cardinal Health's Healthcare Supply Chain Services team.