Here’s a summary of the award from Parker’s newsletter: Newsletter – Gold Link Award Ceremony.
Introduction to the new HVD Gold Link Strategic Supplier Award
HVD is introducing a brand new supplier award: the Gold Link Strategic Supplier Award. Based on the same principles as the Win Scorecard, the Gold Link Award is reserved for only those select suppliers that excelled in all areas of critical importance to Parker. In FY17, four Hydraulic Valve Division suppliers met the stringent requirements and were presented with the Gold Link award during a ceremony on October 13, 2017.
As Gold Link award winners, these suppliers demonstrated that they are true partners and our goal is to provide them select benefits (per below). They have a proven record of accomplishment as the “best of the best” when it comes to supplying Parker Hannifin. Together we can strengthen Parker’s global supply chain, one Gold Link at a time.
Gold Link Criteria: Objective Measurements
- Must be a Long Term Agreement Supplier
- Delivery: >=95% SDR
- Quality: <300 RPPM and not more than one rejection regardless of RPPM and ISO certification or higher and fully engaged in and timely responses to NCRs/CARs/PARs
- PCI: Meeting PCI goal and are fully engaged in the process
- Inventory Optimization: One or more of the following: 24hr releases, supermarkets, Kanban, full engagement in inventory reduction efforts, shortening of lead times, etc. (attachment A, consignment)
- PHconnect logon with annual certifications
- Superior Customer Service
- Best Value Supplier
- Best Technology and Technical Support
Benefits of being a Gold Link Award Winner
- Recognition on Parker’s Supply Chain Forum on POL – Seen by all divisions, worldwide.
- Increased sales opportunities with other divisions within Motion Systems Group.
- Highlighted in Divisional newsletter so that every division associate knows the names of our very best suppliers.
- Early involvement in Winovation projects and increased opportunities to partner on new development opportunities.
- Priority access to our labs and technical teams for testing of new products and increased potential for product conversions.
- “First look” privileges for new product development and RFQs.
FY18 HVD Business Update
Mike Walasinski, General Manager at HVD, provided an overview of the key markets and customers. In addition, he provided the economic outlook for FY18:
- Industrial production growth continues to accelerate. The current projection for global industrial production growth is 2.4% in FY18
- The Global Purchasing Managers’ Index is at its highest in more than six years
HVD sales are on an upward trajectory, with strong demands kicking off the first quarter of Parker’s FY18. FY18 Q1 sales were up 19% versus FY17!! Our customers are demanding competitive pricing, fast responses, and unwavering quality. The collaborative relationships we are building with our suppliers and our customers will help us continue to gain share in the marketplace.
Motion Systems Group Update
Mark Anzelc, Vice President Supply Chain of the new Motion Systems Group, was next up on the list of presenters. The newly created Motion Systems Group (MSG) combined the Hydraulics Group with the Pneumatics and Electromechanical businesses of the Automation Group and is positioned to offer customers the best solutions. Innovation is driving Parker’s success, and there are opportunities for growth in all regions of the Global Marketplace when we are partnered with the right suppliers.
HVD Quality Summary
Mike Muren, HVD’s Division Quality Manager, provided details for “What Good Looks Like” in his presentation on Quality. HVD recognizes that our suppliers’ success will result in success for the Division and get us wins in the marketplace. Our Customers are targeting a goal of 50PPM. Parker and its supply base must have robust Design, Systems and Process to target zero defects. Part cleanliness is one of the key areas that will help us succeed, since contamination is recognized as a main source of failure by our Customers. Compliance to ISO 18413 and 4405 will drive efforts to limit particle size contamination in our finished valves.
Supply Chain Strategy
We are looking to build strategic partnerships and develop a path to reach HVD’s future state. By signing the Network Procurement Agreement (NPA) template, suppliers commit to authorized inventory levels and goals for Continuous Improvement. The NPA includes the traditional Attachment A inventory agreement, as well as an opportunity to sign up for Parker’s Consignment program.
Our strategic partners must be in tune with industry trends, and be willing to invest in technology that brings innovative solutions to Parker. A scorecard format will be used to evaluate our supply base against the objective criteria and determine which suppliers should be considered within our long-term strategy.
Parker HVD needs to aggregate its supply base and simplify the supply chain. Our strategic partners must be in tune with industry trends and be willing to invest in technology which brings innovative solutions to Parker. A scorecard will be used to evaluate our supply base against the objective criteria. These scores will determine who remains a partner in our long-term strategy. The scorecard for FY17 categorized metrics against 4 levels of performance: Exit/Develop, Meets, Exceeds and Premier. Metrics include Quality, Delivery, Continuous Improvement, Payment Terms, Trade Compliance, and PHConnect Usage. We expect all our partner suppliers to be fully engaged and have a signed NPA in place by the end of FY18.