SUPPLIER CONVENTION SUCCESS

SUPPLIER CONVENTION SUCCESS HOW WE’RE GROWING TOGETHER FOR BEST TOTAL VALUE

In this issue of On the Ground we look at why our supplier convention in Orlando, Florida, was such a crucial part of our supply chain transformation.

We’ll also be looking at how that success has set us up to continue advancing in the future and learn more about our Strategic Sourcing Program (SSP).

Building on the success of the previous Wave 1 supplier convention, this two-day event included some 1,200 people from 33 different countries.

This time around we engaged with suppliers representing our Wave 2 categories: 22,000 different parts – including wheels, tires, tracks, gears & shafts, hydraulics, heating, ventilation & air conditioning and machining and forgings. They account for an annual spend of USD $1.7 bn.

As with every convention, our aim was to foster in-person engagement to create stronger partnerships with our existing suppliers and encourage potential suppliers to co-develop and co-innovate in the future to Grow Together and put the customer at the center of everything we do.

We galvanized this supplier audience to join us in uniting great iron with great tech to increase productivity and profitability for us, them and most especially our customers – the people we are all working to serve.

This event included

people from

different countries

SSP

The SSP is a multi-year, multi-wave supply chain transformation. The program is designed to negotiate long-term strategic agreements with suppliers. The SSP team is made up of 60 people worldwide, whose mission is to recommend strategic partnerships with current and potential suppliers to build a stronger and more resilient supply chain and co-invest and develop for best total value.

What is Best Total Value?

Best Total Value is at the core of the SSP. Put simply, through long-term relationships with our suppliers we want to negotiate agreements on price, quality, delivery, and services all whilst putting our Customer First. If we can achieve that, it’s good for us and our suppliers.

Let’s hear from some of our people from the SSP and suppliers who attended the event.

June O’Donnell is based in North America and is the SSP Lead.

“The strategic sourcing programme is transformational for our supply chain. We've had to work hard and now we're seeing the first results from Wave 1 being implemented. Our achievements are only possible thanks to all the people behind this programme. In the end, it all comes down to the quality of our relationships as a team and with our suppliers.”

Davide Alberto is based in France and part of the Strategic Sourcing Program team.

“For the SSP I like the concept of best total value because it’s more than just about price. It’s about co-engineering. It’s an opportunity.”

Troy McDaniel is based in North America and is part our Strategic Sourcing Program team.

“What excites me most about the SSP is the global cross-functional team CNH has put together. Working with colleagues from engineering, quality, manufacturing, finance and really seeing how we can bring the team together.”

Francesca Gaia is based in Italy and is part our Strategic Sourcing Program team.

“From an employee perspective the most important part of this was the transformation process and co-operating to achieve it. Best total value reflects on both us and our suppliers.”

Ben Brown, Global Vice President of Sales, OTR

“One of the primary things I learned from attending the event was that CNH prides itself on relationships with suppliers and they take a thoughtful approach to selection. It’s not just about price, it’s about the total value price proposition.”