SCDigest Editorial Staff

SCDigest Says:

Because Hologic's supply network is characterized by a relatively few number of suppliers that are often specialized, and its embrace of Lean principles, much of the supplier-facing work is focused on assuring supply and minimizing risk. What Do You Say? Click Here to Send Us Your Comments Click Here to See Reader Feedback

It is frequently interesting to see how other companies measure various aspects of their supply chains.

This week, we take a look at how Hologic, a medical equipment manufacturer headquartered in Beford, MA, measures its procurement processes and suppliers, under the leadership of Tim Bye, director of supply chain for $1.6 billion manufacturer.

According to Bye, key process steps and metrics for the procurement organization at Hologic are organized as follows:

Weekly:

Bye and key staff member meet with the production team to review:

• Any non-corforming materials/component receipts and the impact on manufacturing

• The number of supplier corrective actions

Monthly:

Commodity teams meet to assess supplier performance along a number of dimensions. Key measures include:

• Supplier delivery, quality, responsiveness and cost

• On-time performance

• Incoming inspection yields

• Dock-to-stock achievement

Quarterly:

• Bye himself meets with key suppliers to go over their scorecards for the quarter

• Commodity teams meet with other suppliers to review their scorecards

• There are also meetings with key suppliers at alternating production facilities within Hologic's network

(Sourcing and Procurement Article - Continued Below)

Annually:

Various Hologic purchasing teams meet to perform:

• New supplier assessments

• On-site audits at key suppliers

• Lean supplier opportunities assessments

Because Hologic's supply network is characterized by a relatively few number of suppliers that are often specialized, and its embrace of Lean principles, much of the supplier-facing work is focused on assuring supply and minimizing risk, Bye says.