hubbardton for website - Reshoring Initiative · Handmade,Decorave LighngFixtures •...
Transcript of hubbardton for website - Reshoring Initiative · Handmade,Decorave LighngFixtures •...
![Page 1: hubbardton for website - Reshoring Initiative · Handmade,Decorave LighngFixtures • Oneofthepremier brandsandadesign leaderinthelighng industry. • “ModernAmerican ... hubbardton](https://reader036.fdocuments.us/reader036/viewer/2022070809/5f07b2147e708231d41e46dd/html5/thumbnails/1.jpg)
1
![Page 2: hubbardton for website - Reshoring Initiative · Handmade,Decorave LighngFixtures • Oneofthepremier brandsandadesign leaderinthelighng industry. • “ModernAmerican ... hubbardton](https://reader036.fdocuments.us/reader036/viewer/2022070809/5f07b2147e708231d41e46dd/html5/thumbnails/2.jpg)
• Manufacturer of Handmade, Decora1ve Ligh1ng Fixtures
• One of the premier brands and a design leader in the ligh1ng industry.
• “Modern American Blacksmith”
Who we are:
![Page 3: hubbardton for website - Reshoring Initiative · Handmade,Decorave LighngFixtures • Oneofthepremier brandsandadesign leaderinthelighng industry. • “ModernAmerican ... hubbardton](https://reader036.fdocuments.us/reader036/viewer/2022070809/5f07b2147e708231d41e46dd/html5/thumbnails/3.jpg)
• Growing, small to midsize manufacturer.
• High-‐Mix / Low Volume Business Model – 1000 different base products – 40,000 different configura1ons for
ordering + customiza1ons – 99% of SKU’s are Made to Order
• Have a global supply chain for over 7000 ac1ve components. – 25% are sourced overseas
• In the past few years we have begun to understand the importance of TCO.
What we are:
![Page 4: hubbardton for website - Reshoring Initiative · Handmade,Decorave LighngFixtures • Oneofthepremier brandsandadesign leaderinthelighng industry. • “ModernAmerican ... hubbardton](https://reader036.fdocuments.us/reader036/viewer/2022070809/5f07b2147e708231d41e46dd/html5/thumbnails/4.jpg)
• Roughly 400 new components developed for new product each year.
• Realized that sourcing decisions for these components were too focused on unit price -‐ not total cost.
• Needed more informa1on in front of us in order to make good, objec1ve decisions. – Lacked a simple, easy to use
process or tool.
The Problem:
![Page 5: hubbardton for website - Reshoring Initiative · Handmade,Decorave LighngFixtures • Oneofthepremier brandsandadesign leaderinthelighng industry. • “ModernAmerican ... hubbardton](https://reader036.fdocuments.us/reader036/viewer/2022070809/5f07b2147e708231d41e46dd/html5/thumbnails/5.jpg)
5
The Solution: TCO Calculator
l Connected with the Reshoring Initiative and Harry Moser. l TCO Estimator helps identify all the elements that make up
total cost. l HF has worked through the tool to create a customized version
that fits our business. l Resulting in an easy to use desktop tool.
![Page 6: hubbardton for website - Reshoring Initiative · Handmade,Decorave LighngFixtures • Oneofthepremier brandsandadesign leaderinthelighng industry. • “ModernAmerican ... hubbardton](https://reader036.fdocuments.us/reader036/viewer/2022070809/5f07b2147e708231d41e46dd/html5/thumbnails/6.jpg)
6
The Solution: TCO Calculator
l How It Is Used: l Mostly, fixed input variables – only updated once a year. l 8 user inputs that need to be filled for each analysis. l Results in a calculated total cost for both sources.
l When It is Used: l New product development & during evaluation of existing
components.
![Page 7: hubbardton for website - Reshoring Initiative · Handmade,Decorave LighngFixtures • Oneofthepremier brandsandadesign leaderinthelighng industry. • “ModernAmerican ... hubbardton](https://reader036.fdocuments.us/reader036/viewer/2022070809/5f07b2147e708231d41e46dd/html5/thumbnails/7.jpg)
7
The Solution: TCO Calculator
8 user inputs filled in each time.
TCO analysis background information – for file.
![Page 8: hubbardton for website - Reshoring Initiative · Handmade,Decorave LighngFixtures • Oneofthepremier brandsandadesign leaderinthelighng industry. • “ModernAmerican ... hubbardton](https://reader036.fdocuments.us/reader036/viewer/2022070809/5f07b2147e708231d41e46dd/html5/thumbnails/8.jpg)
8
Key Variables to HF:
l MOQ (Minimum Order Qty) l Supplier Lead-times l Landed Cost – Including expedited freight costs l Annual Forecast Qty. – for the component l Product Life
![Page 9: hubbardton for website - Reshoring Initiative · Handmade,Decorave LighngFixtures • Oneofthepremier brandsandadesign leaderinthelighng industry. • “ModernAmerican ... hubbardton](https://reader036.fdocuments.us/reader036/viewer/2022070809/5f07b2147e708231d41e46dd/html5/thumbnails/9.jpg)
9
The Results:
l We are making decisions on a component by component basis.
l Have seen components that would have been sourced overseas now sourced domestically.
l Trends: l Components that have had a unit price difference of 50% or less have been
good candidates for keeping domestic. l Size/Weight of component and tooling costs make a big difference. l Beginning to see some trends among component types/commodities.
![Page 10: hubbardton for website - Reshoring Initiative · Handmade,Decorave LighngFixtures • Oneofthepremier brandsandadesign leaderinthelighng industry. • “ModernAmerican ... hubbardton](https://reader036.fdocuments.us/reader036/viewer/2022070809/5f07b2147e708231d41e46dd/html5/thumbnails/10.jpg)
10
What we have learned:
l Not just a Supply Chain decision making process. l Need to train Engineering and Product Development
teams. l Make the right decision when a component is first
sourced. l It is more difficult and costly to re-source.
• Potentially reinvest in tooling and training.
![Page 11: hubbardton for website - Reshoring Initiative · Handmade,Decorave LighngFixtures • Oneofthepremier brandsandadesign leaderinthelighng industry. • “ModernAmerican ... hubbardton](https://reader036.fdocuments.us/reader036/viewer/2022070809/5f07b2147e708231d41e46dd/html5/thumbnails/11.jpg)
11
Challenges:
l Need to change the mindset of the entire business. l Product Costing
l Develop or find new domestic suppliers who compete well in the total cost model.
l Domestic suppliers to OEM’s need to be educated.
l Difficulty locating domestic sources for some part types.
l New way of thinking!
![Page 12: hubbardton for website - Reshoring Initiative · Handmade,Decorave LighngFixtures • Oneofthepremier brandsandadesign leaderinthelighng industry. • “ModernAmerican ... hubbardton](https://reader036.fdocuments.us/reader036/viewer/2022070809/5f07b2147e708231d41e46dd/html5/thumbnails/12.jpg)
12
Wrap Up