Creating a Transparent & Cost Effective

Automotive Supply Chain

October 24 – 25 | Detroit

Day One
Tuesday October 24, 2017

Day Two
Wednesday October 25, 2017

Driving Collaborative & Accurate Costing through the Supply Chain

08:50
Chair’s Opening Remarks

Creating a Transparent Supply Chain

09:00
OEM Perspective: Driving Transparency & Targets through the Supply Chain to Promote an Efficient & Low-Cost Automotive Industry

Synopsis

  • Communicating the benefits to a supplier of opening up their books and sharing an honest breakdown of costs
  • Hearing how an OEM can shine a light not only on Tier 1 costs, but also a breakdown of costs through sub-tiers and how this data can be used to reduce costs
  • Evaluating the power that a purchaser has when a supplier offers a unique or difficult to source solution

09:40
The Better You Are at Costing… the Better You Are at Quoting

Synopsis

  • Cost estimating and quotation management
  • Enterprise product costing improves customer relationships and quote response times
  • Maximize the relationship between sales and purchasing
  • Centralize and standardize costing processes on a global basis

10:10
Speed Networking & Morning Refreshments

11:00
Audience Discussion: How to Present an Accurate Cost Breakdown & Develop Collaborative Relationships with Customers

Synopsis

  • Reviewing the appetite of suppliers to break down their costs: how deep are they prepared to go and what hesitations do they have?
  • Comparing formats for how data can be displayed and improving communication with customers to understand which specific values are needed in each quote
  • Determining what percentage of profit is deemed acceptable and how this is presented to a customer accurately and fairly

Costing Methods

11:40
Utilizing Should Cost Models as a Negotiation Tool for Purchasing

Synopsis

  • Exploring how data such as material and manufacturing costs can be ascertained from multiple sources to develop a holistic understanding of the market
  • How to identify the line between competitive and unrealistic targets across each critical system and component
  • Understanding what data your purchasing team needs to be able to confidently and effectively negotiate with suppliers

12:20
Networking Lunch

13:20
Can You Handle the Truth? Do Cost Engineers Really Want to Measure Costs Accurately?

Synopsis

  • Determining the objective of cost information: to know the truth or to justify your case?
  • Exploring what guidelines could be adopted by all tiers of the supply chain and what that cost model could look like
  • Can you measure product and process costs at a 21st Century manufacturer with a 100-year-old cost model?

14:00
Hearing How to Accurately Estimate Costs When Provided with Limited Design Details from the Customer

Synopsis

  • Understanding which assumptions can or cannot be made to fill in design gaps
  • Improving collaboration with OEMs to narrow down the design options and develop as precise a costing as possible at an early stage
  • Identifying the largest uncertainties in preliminary costing such as future commodity costs and hearing best practices to improve foresight over these areas

14:40
Afternoon Refreshments

15:10
Panel: Exploring How Buyers & Suppliers Use Preliminary Estimates to Negotiate & Identify Reasonable Cost Reduction Plans

  • Amit Nayar Global Director Cost Engineering in Purchasing, Lear Corporation
  • Chris Domanski Purchasing Manager, Nexteer Automotive
  • Timothy Welbaum Senior Cost Engineer - Manufacturing, Hella
  • Marc Pearlman Director of Cost Estimating & Administration, Unique Fabricating

Synopsis

  • Developing a shared vision across the industry for what is a fair profit margin at each tier of the supply chain
  • Hearing how buyers use target costs and their breakdowns to identify inefficiencies in a quote and work with suppliers to develop a win-win for cost reduction
  • Outlining common reasons why disagreement may occur between buyers and suppliers on what further cost reductions are reasonable and how these can be resolved

Cost Control & Optimization

15:50
Learning How OEMs & Their Supply Chain Can Work Collaboratively to Balance Costs & Design Quality

  • Donald Bryant Global Commodity Manager, Stanadyne
  • Ed Pretzel President / Teacher , Collaborative Supply Chains / Wayne State University
  • Tim Britton Vice President, Clearfield Metal Technologies

Synopsis

  • Hearing how transparency and collaboration can have more of an impact in the early design stage compared to the later stages of a project
  • Exploring the speed at which suppliers can estimate the cost savings associated with alternative design changes to streamline the decision making for a buyer
  • Understanding how cost engineers can improve internal collaboration with designers to ensure the right balance is achieved between cost and quality

16:40
Chair’s Closing Remarks

16:50
End of Day One