Design for Supply Chain (DfSC) What is it?
Design for Supply Chain is a systematic approach to designing products and processes that optimize the entire supply chain, from raw material sourcing to final product delivery. It involves considering the entire product lifecycle, from design and development to manufacturing, distribution, and customer service.
The goal of DfSC is to create products and processes that are:
Efficient
Minimize waste and maximize productivity throughout the supply chain.
Responsive
Quickly adapt to changes in demand or supply.
Sustainable
Minimize environmental impact and maximize social responsibility.
DfSC can provide a number of benefits, including:
Supply Chain Management (SCM) engagement is a critical step in product development to ensure success after product launch. The DfSC approach secures the best current and future total cost solution, the right technology fit, while also mitigating risks. It requires a dedicated focus, integration of SCM sourcing with the design engineering architects as well as incorporating a proactive project management schedule. At Celestica we actively evaluate sourcing options and incorporate the right mix of suppliers into the SCM strategy to maintain the time to market while providing the best overall cost and lowest risk solutions to our customers.
Celestica's Design for Supply Chain process aims to optimize product effectiveness by engaging early with customers and design engineering teams to establish a key understanding of the product requirements, schedule, unique material or technology, key component architectural choices, custom parts as well as standard component types.
Celestica leverages its tools and experience to select the right suppliers based on market conditions, quality performance, cost, lead time, and geography.
For standard parts, several preferred sources are assigned to mitigate risks by establishing multiple channels of suppliers while creating a competitive environment.
For custom parts, preferred sources are chosen to support the both prototype and production volumes with appropriate tooling for each stage of the product cycle.
If there is an existing design and bill of materials (BOM), Celestica can review and advise of potential improvement in the design and component and supplier selection based on features, cost, risk, DFx or other enhancements.
Utilizing our internal performance monitoring, supplier relationships, as well as market research we can advise of potential supplier performance challenges and offer solutions that expedite product realization and product assurance.
Celestica conducts a design for supply chain (DfSC) analysis to accelerate delivery timeframes by breaking down the manufacturing process into distinct phases.
The team works with qualified sources to quickly deliver components for initial validation. We engage with the right mix of local sources, manufacturers or distributors to secure the optimal balance of lead times and costs for initial prototypes and production volumes. Celestica partners with preferred suppliers around the world to implement a long-term sourcing strategy that delivers on desired cost, risk and time-to-market targets.
DESIGN FOR SUPPLY CHAIN Celestica recommends breaking DfSC into three stages:
1. Requirements
Define product/project requirements for resources, timing, cost, specifications, geography, technology, regulatory, and volumes.
2. Research
Assess existing or new source availability, capability assessment, financial assessment, relationship, quality systems, field performance, support offering, capacity assessment, terms, flexibility, life cycle support, and lead time.
3. Realization
In this stage, focus on best total cost, lowest risk, competitive tension, negotiation, selection, communication, application support, transactional engagement (ordering, warehousing, delivery), performance monitoring, and relationship growth.