3PL Marriage Advice
Some of us have entered into those treacherous waters that contain the transfer of in house operations to a 3PL. We know that this is a fairly big deal. You can’t really get the benefits of a 3PL relationship without betting some significant part of your business, and in this case, mistakes and problems show up at the customer in most cases. Many times it also means taking away business (read jobs) from internal folks, some of whom can act like jilted ex-boy or girl friends, waiting to bring as much attention as possible to problems that may come up.
Since logistics companies seem to be last companies on the planet that still have an entertainment budget, the “dating” process can be pleasant, but there is a lot of detail that needs to be covered in this phase for the relationship to work. Many times real issues between the partners are not discussed out of laziness, or yes, fear of not being as attractive to the other side as we would like to be. A lot of time is spent on the contract, but as with a “pre nup” it only really deals with what happens after the relationship goes south.
Like a marriage, the key issues in making the relationship work are communication, trust, and flexibility. Inevitably there are things that are going to come up after the fact, during implementation (oh – you guys have an office in Botswana?) on both sides (your IT system has EDI, but you have never actually used it….) that need to be worked out (these rates were based on your forecast volume… which is 3X what we are actually getting) and crises need to be managed on an ad hoc basis. (no - we don’t know where the container is)
It is critical that all the parties involved go into the venture with the idea that things will change and that the overall objectives of the project are what is paramount. Modifications of these types of agreements are inevitable. If each side can keep his head as the inevitable issues come up and both parties learn to live under the same roof, a solid relationship can be formed.
There is of course a lot that can be handled in the “Dating” process, and the implementation can be managed to minimize spats and disagreements. But I will address that in later blogs….
Till then…….
Wednesday, June 23, 2010
Who is this guy anyway - My Resume
Thomas C. Dannemiller
tcdannemiller@yahoo.com
Professional Profile
Experienced Logistics and Program Management professional with expertise in the following areas:
• Implementation of program management tools
• Development of tools and methods for operating cross functional teams
• Analysis and optimization of logistics systems and processes
• Implementing lean methods to improve company performance
• Building successful business relationships in China, SE Asia, Japan, US and Europe
• Structuring, staffing, managing and optimizing supply chain systems
• Recruiting and developing or restructuring effective teams
• Inventory management and planning
• Success in running programs across companies, languages and borders
Global Logistics - Supply Chain Management - Manufacturing and Distribution - Six Sigma - Lean Systems - Process Improvements - Product transitions - Global Sourcing - Asian Manufacturing - Developing Effective Teams - ERP - MRP Implementation - Kanban - Reverse Logistics - Consulting - Organizational Development - Six Sigma - Contract negotiation - Product Development - Change Management - Quality Management, Facilties Management
Professional Accomplishments
International Logistics
Most Recent:
• Revamped logistics routes and consolidation points for lead time and cost savings
• Established Asian hub operation to consolidate US-inbound freight
• Reduced cost and lead time by managing deliveries from source to customer receipt
• Designed and implemented automated information sharing system to reduce data entry and time spent on e-mails and expediting.
• NET RESULTS: 25% cost savings, 3-week lead time savings, 25% headcount savings
• Bid and negotiated multiple 3PL contracts
• Managed specialize shipment of large, high value, fragile cargo
• Shipped a complete factory from San Diego to Gotemba Japan and started it up in 9 days
• Set up global service logistics network with hubs in Amsterdam, San Francisco, and Tokyo in 90 days.
• Designed customized logistics program for customers to include VMI, Kan Ban, Safety Stock and Order to Forecast processes
• Featured speaker at Interlog in San Diego 2009 - 2010
Program Management
• Headed up logistics cost reduction program to cut overall freight by 35%
• Installed Team Room information sharing process for projects that increased communication efficiency, improved problem tracking, and faster resolution to improve project on time performance
• Authored and implemented an explosive growth plan that took the company from $12 Million run rate to $220 Million in 18 months.
• Established new factories in the US, Europe, and Asia. Set up contract operations in Asia and the US.
• Selected, leased, and built out multiple facilities for factory, lab, and general office use
• Recertified the company for ISO9001
• Developed and managed programs with Tier 1 customers to reduce product cost and improve logistics efficiency
Supply Chain Management
Coordinated of the activities of 2 design centers, 5 internal and 3 contract factories located in Japan, China, Malaysia, Singapore, Hong Kong, Israel, the US, and the UK.
• Facilitated the successful transfer of several product lines from internal manufacturing to contract manufactures in China and SE Asia.
• Defined, modeled and set raw material inventory target levels for all multiple factory sites
• Instituted and managed a synchronization meeting with sales, marketing and plants to set master plan to meet revenue, inventory, and lead time targets
• Created planning and forecast analysis tool to combine historical data and forecast to reduce lead times and inventories
• Created new supply chains from scratch for specialty components and materials that did not exist for volume production.
• Designed and implemented global source supply chain for 3 separate factories in the US Japan.
• Negotiated and managed many VMI, Kan Ban and other purchase contracts
• Performed outsourcing survey/analysis and managed subsequent outsourcing program to completion. RESULTS: 70% reduction in cycle time, 25% reduction in direct headcount, 25% improvement in delivery lead time.
Operations & Manufacturing
• Installed Lean-style production methods; installed Kan Ban style material movement system that decreased average inventory in work centers by 60% and improved inventory accuracy to over 99%
• Organized factory into work-center-based cross functional teams – Reduced WIP by 20$ and eliminated a layer of management.
• Started new manufacturing lines in China Thailand, and Switzerland as well as several in the US
• Automated repetitive step in the order fulfillment process, reducing headcount by 20% and eliminating data entry errors
• Installed statistics-based,quality tracking system used to improve yields from 65% to 96%
Work History
Director, Engineering - TDK Lambda Americas, Inc. - San Diego, CA 2009 - Present
Director, Operations - TDK Lambda Americas, Inc. - San Diego, CA 2004 - /2009
Owner - Elite Fitness Spas - Carlsbad, CA 2002 -
Business Unit/VP/ MfgVP Delta Design, Inc. - Poway, CA 2000 - 2002
VP, Manufacturing - Cymer, Inc. - San Diego, CA 1995 -
Director, Logistics - AG Associates - San Jose, CA 1991 - 1995
Director, Operations - KLA Tencor - San Jose, CA 1988 - 1991
Education
BSEET DeVry Institute of Technology, OH 1982
tcdannemiller@yahoo.com
Professional Profile
Experienced Logistics and Program Management professional with expertise in the following areas:
• Implementation of program management tools
• Development of tools and methods for operating cross functional teams
• Analysis and optimization of logistics systems and processes
• Implementing lean methods to improve company performance
• Building successful business relationships in China, SE Asia, Japan, US and Europe
• Structuring, staffing, managing and optimizing supply chain systems
• Recruiting and developing or restructuring effective teams
• Inventory management and planning
• Success in running programs across companies, languages and borders
Global Logistics - Supply Chain Management - Manufacturing and Distribution - Six Sigma - Lean Systems - Process Improvements - Product transitions - Global Sourcing - Asian Manufacturing - Developing Effective Teams - ERP - MRP Implementation - Kanban - Reverse Logistics - Consulting - Organizational Development - Six Sigma - Contract negotiation - Product Development - Change Management - Quality Management, Facilties Management
Professional Accomplishments
International Logistics
Most Recent:
• Revamped logistics routes and consolidation points for lead time and cost savings
• Established Asian hub operation to consolidate US-inbound freight
• Reduced cost and lead time by managing deliveries from source to customer receipt
• Designed and implemented automated information sharing system to reduce data entry and time spent on e-mails and expediting.
• NET RESULTS: 25% cost savings, 3-week lead time savings, 25% headcount savings
• Bid and negotiated multiple 3PL contracts
• Managed specialize shipment of large, high value, fragile cargo
• Shipped a complete factory from San Diego to Gotemba Japan and started it up in 9 days
• Set up global service logistics network with hubs in Amsterdam, San Francisco, and Tokyo in 90 days.
• Designed customized logistics program for customers to include VMI, Kan Ban, Safety Stock and Order to Forecast processes
• Featured speaker at Interlog in San Diego 2009 - 2010
Program Management
• Headed up logistics cost reduction program to cut overall freight by 35%
• Installed Team Room information sharing process for projects that increased communication efficiency, improved problem tracking, and faster resolution to improve project on time performance
• Authored and implemented an explosive growth plan that took the company from $12 Million run rate to $220 Million in 18 months.
• Established new factories in the US, Europe, and Asia. Set up contract operations in Asia and the US.
• Selected, leased, and built out multiple facilities for factory, lab, and general office use
• Recertified the company for ISO9001
• Developed and managed programs with Tier 1 customers to reduce product cost and improve logistics efficiency
Supply Chain Management
Coordinated of the activities of 2 design centers, 5 internal and 3 contract factories located in Japan, China, Malaysia, Singapore, Hong Kong, Israel, the US, and the UK.
• Facilitated the successful transfer of several product lines from internal manufacturing to contract manufactures in China and SE Asia.
• Defined, modeled and set raw material inventory target levels for all multiple factory sites
• Instituted and managed a synchronization meeting with sales, marketing and plants to set master plan to meet revenue, inventory, and lead time targets
• Created planning and forecast analysis tool to combine historical data and forecast to reduce lead times and inventories
• Created new supply chains from scratch for specialty components and materials that did not exist for volume production.
• Designed and implemented global source supply chain for 3 separate factories in the US Japan.
• Negotiated and managed many VMI, Kan Ban and other purchase contracts
• Performed outsourcing survey/analysis and managed subsequent outsourcing program to completion. RESULTS: 70% reduction in cycle time, 25% reduction in direct headcount, 25% improvement in delivery lead time.
Operations & Manufacturing
• Installed Lean-style production methods; installed Kan Ban style material movement system that decreased average inventory in work centers by 60% and improved inventory accuracy to over 99%
• Organized factory into work-center-based cross functional teams – Reduced WIP by 20$ and eliminated a layer of management.
• Started new manufacturing lines in China Thailand, and Switzerland as well as several in the US
• Automated repetitive step in the order fulfillment process, reducing headcount by 20% and eliminating data entry errors
• Installed statistics-based,quality tracking system used to improve yields from 65% to 96%
Work History
Director, Engineering - TDK Lambda Americas, Inc. - San Diego, CA 2009 - Present
Director, Operations - TDK Lambda Americas, Inc. - San Diego, CA 2004 - /2009
Owner - Elite Fitness Spas - Carlsbad, CA 2002 -
Business Unit/VP/ MfgVP Delta Design, Inc. - Poway, CA 2000 - 2002
VP, Manufacturing - Cymer, Inc. - San Diego, CA 1995 -
Director, Logistics - AG Associates - San Jose, CA 1991 - 1995
Director, Operations - KLA Tencor - San Jose, CA 1988 - 1991
Education
BSEET DeVry Institute of Technology, OH 1982
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