Page 137 - Harnessing the Management Secrets of Disney in Your Company

118 The Disney Way

as a company in developing partnerships with our suppliers? (4) Are we
considering partnerships with organizations that share our goals?
■ Invite employees to investigate organizational issues by identifying
barriers to success and encourage them to develop solutions.
■ Meet with suppliers two days or more per quarter to discuss ways to
solve customer problems and fulfill customer dreams.

Suppliers as Partners

Of course, when a radical new design for a product is initiated, the costs
are high. Changes have to be made in basic drawings and design. Then
bids are put out to suppliers, who must, in turn, redesign their products.
“This is going to cost you an extra $5,000 because we have to retool,” is
often the suppliers’ answer.
The Global No-Frost team tried a different and innovative approach.
As the work moved forward, the team became involved with the compa-
ny’s capital equipment suppliers, who were supplying the equipment for
the plant in India. The structure was to be built on an empty site in the
middle of a wasteland on the outskirts of Pune, near Bombay. There were
some 10 equipment suppliers, and the company was spending, at the very
least, $5,000 with each one.
The team set up an unprecedented two-day meeting with all the
suppliers. The meeting opened with Jerry McColgin, the team leader,
standing up and informing his audience that, first of all, everyone would
have to sign a confidentiality agreement to protect the company. Then,
he continued, “Traditionally, you’re told exactly what is wanted, but
this time it will be different. I want you to understand how your contri-
bution fits into the overall project.” He proceeded to explain the whole
schedule and where each supplier fitted in. “I pointed out as well that
our success was entirely dependent on them.”
The response was amazing. They were thrilled to be included and to
understand their role in the process. Usually, suppliers’ contact with the
company is limited to one manufacturing engineer. Now they were deal-
ing with 35 people as a team. To keep them abreast of developments, they
were sent a monthly update, which not only included an account of the
team’s progress but also mentioned suppliers who were on time, and even
more to the point, suppliers who had fallen behind schedule.