Don't be Humpty Dumpty - Failing to deliver

It is my job to understand what motivates a client to add you (SME, Tier two, Tier 3) to the AVL, over the last few months I have engaged in a multitude of conversations with Tier One's and Two's with diverse business needs in a multitude of sectors. The discussions centered on how many suppliers are either on the brink of failure or have failed. Most distressing is many of these OEM's are seeking new suppliers, but can't seem to find the right ones ready to produce.

Some of the symptoms of failure discussed are as follows:

• Late deliveries
• No follow-up
• Constant members of the breakfast club; (if you don't know what I am referring to, keep it that way)
• Horrible efficiency
• Less than competent QA departments
• Defective components
• Poor supply chain management, if you have to blame your supplier for poor delivery that results in a poor on time delivery, you have failed to live up to your responsibility as a supplier. Plan, prepare, anticipate, follow up ann execute.
• Audits that result in failed: FOD, FMEA, PFMEA's, sign offs missing, insufficient travellers, Calibration certs expired, supplier audits not effective

To name just a few of the grievances discussed.

Hopeful new Suppliers taking their shot and missing horribly:

• No QA system
• No Security Clearance, Frank Dods, ITAR, CGP, Cyber security protocols, Counterfeit component strategies (the list of issues are too many to list). If you dont recognize at least one of these requirements, you are not ready to offer your services.
• Liability insurance coverage not sufficient or non existent; no $5M will not be sufficient, risk mitigation and your ability to offer worry free support is a criteria for supplier selection.
• Financially risky, Credit, revenue, the ability to manage large scale projects in an environment that mandated 90 Day payment terms, if you can't handle the payment term cycle, you are a risk.
• KPIs are subpar in all areas of concern
• Load vs Capacity is not rooted in reality, do what you say, say what you do!!!
• Don't have the right software, ERP, MRP, Catia, cant afford it, your not ready!
• Not ready to be a partner, so much wrapped into this statement that it would take me at least 4 days to explain, the gist of this comment is, be prepared to prove your capabilities, you will have to invest Time, Money, personnel to ensure the clients engineering department is satisfied that your FAI meets their exacting requirements. Not willing to invest, you are not ready!
• AS9100D processes are lacking, TS16949 Not executed effectively, 14001, 17025, 13494 the list goes on and on of organizations who state they have a QA system in place with little proof to show that the system is a living breathing organism.
• Too Small, not vertically integrated,
• Not innovative enough, equipment too old

Etcetera, etcetera, you get the point.

The list of why Tier one, two's are not going to add new suppliers is lengthy and wide in scope, the above is just a small sample of the reasons provided, the symptoms resulting in a failed supply chain partner or the inability for your organization to find a path forward in achieving is growth goaths, that elusive Long term agreement, that transformational opportunity.

For 24 years, I have helped a multitude of SMEs, Tier 2, 3 reach clients and sectors they never knew they had any relevance within. With over $400 million in sales acquired, one big lesson that reigns supreme is the ability of that supplier to continue to deliver, long after I am no longer part of the team.

Before I sign on with any organization I walk through a multitude of due diligence protocols from:

1. interviewing Ownership, management, and staff
2. Audit the procurement department
3. Verifying inventory levels
4. QA Stats (KPIs)
5. Speaking to suppliers and customers before I sign on the dotted line to support said company.

It's imperative to me that any company I support and engage with can execute on all levels, my reputation is paramount, I don't attach myself to problem projects.

The key realization for any organization trying to scale the mountain is to ensure they have the gear necessary to ensure the climb is fruitful. No point going after the big fish, the grand opportunity if you are not ready to execute. Take a look at your organization from top to bottom, have an external assessment of the organization, you will be facilitated with what you find.

When it comes to the terraforming opportunities, when the opportunity knocks, you have to be ready to go, be sure, and steady, there are no practice runs, and no participation badges for a job well tried! Failure in these circumstances usually moves you to out of contention and in some cases obscurity.

Your reputation is hard to repair when you have fractured it! Don't be Humpty Dumpty, your competition is not interested in picking up your pieces and putting them back together again.