Supply Chain Brain

Strategic Opportunities
That 10 + 2 Presents
Components for Creating
World-Class Manufacturing

Elements of 10 + 2 filings are the same for other

import documentation. Leverage the former

and reduce data inaccuracies, says Ty Bordner,

vice president of solutions consulting at

Management Dynamics.

Like it or not, security rules and regulations multiplied exponentially in the wake of 9/11, and the import supply chain has certainly not gone unaffected in that regard. The so-called 10 + 2 rule that obligates importers to supply

10 data elements and carriers another two is just the latest manifestation of these documentation hassles.

So, if you can’t avoid compliance, how can you go about adhering to the mandate most efficiently, given that penalties begin in 2010? The fact is you have to have the right technology to keep on top of it all, says Bordner. Otherwise, it’s just not manageable. “You can’t throw bodies and people at this.”

Think strategically, he advises. If it’s going to cost you to obey the government’s bidding, how do you keep your margins? Bordner reminds users that when it comes to importing into the U.S., many of the elements required for 10 + 2 compliance are identical to what Customs entry requires. You can satisfy the demands of two bureaucracies at the same time, he says.

This will be news to many companies, Bordner says, since 90 percent of these kinds of transactions are paper-based. Information for Customs entry, for example, is overnighted to brokers, who manually enter the data into required documents. Unfortunately, many forms are hundreds of lines long. There is altogether too much room for mistakes to be made.

“ 10 + 2 is really a catalyst to take all of the entry documents and avoid the errors of the current paper process—make it electronic, in the 21st Century.”

Bordner says automating the process not only eliminates errors, but reduces costs as well. In addition, you gain much greater visibility into your supply chain, which results in less inventory in the system.

To view this video interview in its entirety, visit www.SupplyChainBrain.com.

Combine a little TPM, TPS and TQM into an

alphabet soup, toss in best practices and processes,

and mix it all up with people, culture, organiza-

tional design and change management—and

you have world-class manufacturing, says Iain

Clarke, corporate manufacturing development

manager for MillerCoors.

Of all those components, Clarke says, it’s the human element that is overlooked or ignored more often than not. That’s a major mistake because leaders need to manage change in their organizations and that’s not possible without getting people excited and involved. All too often, leaders are focused too much on process and not enough on the folks that underpin everything.

The leaders he speaks of, incidentally, are the line leaders in the business. They are the ones who will be the “conscience” on the journey toward top-flight manufacturing.

“Journey”? Sounds like the kind of language you hear from proponents of lean and Six Sigma. Clarke says it’s important to realize that they are only subsets of world-class manufacturing. “They’re but processes and practices that we use.”

The term “organizational design” may also be misunderstood, says Clarke. Many hear it and think structure, but that’s only a component. “It starts by figuring out what you are going to do, what you’re not going to do, determining your key success factors and what your competitive advantage is. You move to the processes you need to deliver your strategy. Then you need structure to make those processes work. At that point, you get the people you need.”

Of course, people vary from place to place; at least, culture does. Clarke notes that in some world regions, people are comfortable being told what to do, and then they quite effectively carry out those duties. In other cultures, they want to have some say in the organization’s journey, and you must respect that.