"We simply have to be more responsive in terms of our delivery performance. We need to focus on quality by reducing our defect rates, and we have to put our innovation to work like never before and all this is on top of absorbing costs associated with increasing material and energy prices and the weakening dollar," added Mike Orris. "In addition these changes will help us deal more effectively with our suppliers. In the last supplier survey, suppliers told us that our supply chain is complicated with too many interfaces and points of contact and we know these changes address this," he continued.

By aligning, simplifying and globalising the supply chain - and creating a structure built on cross-functional teams - the company is forming an agile and effective organisation. Alignment of the global supply chain alone will reduce the number of supplier interfaces by around 80 per cent. Further gains are expected to result from standardising roles and clearer accountabilities, and by taking fuller advantage of the collective innovation within our own and our suppliers' organisations.

"There are a number of new market opportunities on the horizon..."
Colin Smith
Director - Engineering and Technology