SUPPLY CHAIN
the quality , technology , cost , and delivery of our supply base .”
While it is truly impressive that A123 is so involved in every single aspect of its own operations , this in-depth and far-reaching approach can only work with every affected party ’ s involvement . Knowing this , Zerbe put together an executivelevel supplier council shortly after joining the company , which reached all the way to the A123 CEO .
“ We get together quarterly and the items that we talk about are key supplier strategies , who are the suppliers that can help us along the way , and how they can help us with our growth strategies ,” Zerbe explains . “ We talk a lot about commodity pricing – such as the costs of cobalt , nickel , copper , and aluminum – and risk mitigation plans , putting in place strategies around how we manage that to minimize financial risk to the business . We also discuss the KPIs I ’ ve put in place because it ’ s important for the leadership team to understand them . That illustrates the continuous improvement we ’ re achieving month over month .”
This level of communication is vital for A123 . “ Nobody likes surprises ,” Zerbe says , and ensuring the team is aligned is the best way of staying on course . That open dialogue
also extends through the supply chain to vendors and suppliers ; it is essential to keep them close too , due to the complex nature of
A123 ’ s technological products ,
as well as them being vital to the business accomplishing its goals .
Prismatic Building Block
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