Commodity Strategies
Customer Problem
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Not achieving key purchased part commodity or category cost, quality, delivery or technical objectives
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Weak supplier improvement roadmaps & resource constraints
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Not leveraging procurement & cross-functional expertise across global spend
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Risk of poor performance reviews, lost compensation, long hours
Our solution: 8-10 week Part Commodity/Category Strategy engagement
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DS Group Advisors offers customized commodity strategy engagements to help our customers achieve world class supplier cost, quality, delivery, and technology.
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Our process applies to major production part/commodities and indirect categories (Maintenance, Repair, Operations expenses, Logistics, Energy, Capital Equipment, and others).
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Assess commodity team maturity versus Best-In-Class levels and recommend cross-functional commodity team structure and written procedure
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Lead client's team to develop one holistic commodity strategy that defines key actions to achieve all key performance objectives.
Our
Process
DSGA Principal Drew Sheffield:
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25+ years leading procurement & global sourcing in NA (incl Mexico), AP, EU, LA
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Buyer to Purchasing Director at Ford
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Global Purchasing Director at TI & ZF
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Chair MEMA/OESA CPO Council
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Member Wayne State University's SCM Advisory Board
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Leading engagements for manufacturers across industries since 2020
& DSGA Lead Consultant, Logistics
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20 years deep SCM/logistics experience
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Principal at SCM/Logistics Consulting Co.
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Ford Motor Company various SCM roles
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Bosch SCM/logistics Manager for NA
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Adjunct Professor, Michigan State University's #1 rated SCM program
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Two prior engagements with DSGA
... both lead the Commodity & Category Strategy engagements.
Our principal led development of: Ford's 1st Global Council Brake Purchasing Team & Strategy and co-led Ford's 1st Brake cross-functional Strategic Commodity Team & Strategy, both earning rave reviews and enabling Top Achiever performance levels.
He led development of the 1st Global Commodity Teams and Commodity Strategies at TI Fluid Systems, enabling outstanding supplier commercial, quality, delivery, technical accomplishments!
DS Group Advisors brings this expertise to help our clients do the same and adjusts the recommendations to be practical for small, medium, and large manufacturing companies across industries.
Strategy Elements (client example)
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Organization Charts
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Performance Objectives
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Procurement Procedures
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Spend Detail
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Commodity/Supplier Strategies
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Supplier Performance/Scorecards
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Major Supply Contracts
DSGA provides an overall best-in-class Commodity Strategy Procedure and leads creation of a holistic strategy for one major commodity. We cover:
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Co, Purchasing & Commodity objectives
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Commodity/supplier spend details and C, Q, D, T performance
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Landed cost analysis
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Create Top Supplier profiles
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Strategic Analysis
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Executive Summary
Executive Summary
We summarize the key few commodity strategy takeaways in an executive summary (example provided)
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3-4 Short-Term Actions
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3-4 Long-Term Actions
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Overall commodity performance status versus objectives
Strategic Analysis
Work cross-functionally to complete strategic analysis for the commodity:
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SWOT (strength, weakness, opportunities, threats)
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PESTLE (political, economical, sociocultural, technological, legal, environment)
We use these results to brainstorm and enhance the part commodity strategy
Commodity Strategy Outputs (Action Plan example)
The commodity strategy outputs:
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Executive Summary
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Approved Supplier List for Sourcing
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Short-Term Action Plan (ex. picture)
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Long-Term Action Plan
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Strategy defines game plan to surpass key commodity objectives
TOTAL COST QUALITY/SERVICE DELIVERY/INVENTORY TECH.
