News Article
How to prepare for the next upturn
Swagelok Company-Executive view
IT CERTAINLY IS A CHALLENGE to be a highly valued supplier today. Fluctuating demand has resulted in a production environment that is fast-paced, high pressured, and unpredictable. This pressurises suppliers, and exposes any company fault lines. It's not just production and delivery that lead to outstanding performance. It's supplier's systems, culture, and approach. How do you determine which potential or current supplier will serve you best ?
At Swagelok Company, we believe that at the heart of a high quality supplier is a culture of continuous improvement. This cultural trait is about perpetual vigilance, in contrast to cycles of hard work, rest, celebration, and pauses. No company is flawless, especially during an extended period of peak production in the semiconductor industry. So we believe that it's how a company responds and reacts to past performance, and how it prepares for future performance, that matter most. Preparation should be ongoing. We've identified areas key to a culture of continuous improvement, and we evaluate ourselves and our own suppliers in each.
- Risk Management. What is the company's track record in mitigating risk, and what improvements have been introduced?
- Capable Systems and Processes. What is the level of sophistication, documentation, and methodology in company processes, from manufacturing through fulfillment? Does the company employ Lean, Six Sigma, or other industry protocols?
- Quality and Reliability. How does the company ensure there will be no compromises in quality, even while demand increases ?
- Workforce Development. How does the company continue to develop a highly trained and skilled workforce through upturns and downturns? Does the company practice cross-training?
- Industry Commitment. What is the company's level of involvement in SEMI and other trade associations? What conversations is it having with industry leaders? What is the company's commitment to science and research?
- New Product Capabilities. What is the company's capacity to design and produce new products in response to customer needs? Can it can collaborate with the customer during the planning, feasibility, and development stages?
- Service and Communication. What is the company's capacity to respond to customer needs at any time? Where are its service locations? What is the degree of company-wide support?
- Capacity Response. How flexible is the supplier's capacity? What is the company's track record during previous upturns, and what improvements have been implemented?
Taking each area into account "“ with an eye toward cost management and future investment "“ separates a highly valued supplier from the pack.
These areas help to structure a conversation with a supplier or assist in evaluating your organization's readiness to manage the next upturn. In either case, it's a process. How we manage them provides important insight into our company culture.
