Celestica Inc. · TSX:CLS
Celestica — Investor Presentation (December 2021)
34 slides from Celestica's investor presentation, December 2021
Slide 1: Global Supplier Management Playbook (GSMP)
Global Supplier Management Playbook (GSMP) December 2021
Slide 2: Table of Contents
Table of Contents • Celestica World Class Supplier Management • Problem Resolution ‒ Problem Solving Culture • Sustainability ‒ Supplier Quality Improvement Program (SQIP) • Why Cybersecurity Matters • Risk Mitigation and Supplier Recovery • Early Supplier Involvement • Change Management Process ‒ F
Slide 3: Celestica World Class Supplier Management
Celestica World Class Supplier Management Welcome to the Celestica Global Supplier Management Requirements Playbook (GSMP). This document defines how Celestica Supplier Flowed Down Supplier Recognition Qualification uses an established Supplier Management Toolkit to engage with our suppliers, throug
Slide 4: Celestica World Class Supplier Management
Celestica World Class Supplier Management “Our Global Supply Chain Management team focuses on delivering optimized total cost solutions while implementing end-to-end risk mitigation strategies and actively supports the revenue generating engine for our customers and Celestica. We accomplish this thr
Slide 5: Sustainability
Sustainability At Celestica, we are committed to driving our sustainability initiative by collaborating with each other, as well as with our customers, suppliers and We have linked Celestica’s goals to the United local communities to drive positive change and, ultimately, foster a company- Nations S
Slide 6: Sustainability
Sustainability Celestica has a global network of more than 4,000 active direct suppliers, and our preferred suppliers are located in close proximity to our Centers of Excellence. This alignment increases the speed and flexibility of our supply chain and provides the shortest overall lead times for o
Slide 7: Why Cybersecurity Matters
Why Cybersecurity Matters At Celestica, we continuously improve security controls to protect company and customer data and increase information reliability. The primary objective of Supply Chain Risk Management (SCRM) is to identify, assess, and mitigate “products and services that may contain poten
Slide 8: Early Supplier Involvement - Flawless Launch Process
Early Supplier Involvement - Flawless Launch Process The purpose of the Flawless Launch (FL) process is to Product Lifecycle Phases improve return on investment (ROI) for all new product development or product transfer initiatives by investing PHASE 0 PHASE 1 PHASE 2 PHASE 3A resources in the progra
Slide 9: Early Supplier Involvement - Flawless Launch Process
Early Supplier Involvement - Flawless Launch Process The Program Managers and Customer Focus Team Product Lifecycle Phase Activities Leads head up Project Core Teams working to a Plan of Record (POR). They deploy a set of Phase Outcome Summary of Phase Activities formalized phase gate reviews so tha
Slide 10: Early Supplier Involvement - Requirements Flow Down
Early Supplier Involvement - Requirements Flow Down For ongoing supply of products it’s equally critical to Supplier provide our suppliers with all the information needed to Agreements enable the provision of defect-free products and services which continue to satisfy and excite our customers. Custo
Slide 11: Supplier Qualification and Assessment
Supplier Qualification and Assessment Supplier Qualification At Celestica, our Global Sourcing Team strives to form long-term relationships with the best direct and indirect suppliers in the market. When we identify a potential new supplier, this supplier is evaluated against our qualification crite
Slide 12: Supplier Qualification and Assessment
Supplier Qualification and Assessment Supplier Categorization Supplier Qualification Status Each stage of the qualification process has a separate set of requirements which must be completed for a supplier to be confirmed as meeting the requirements for that qualification level. The minimum expectat
Slide 13: Supplier Qualification and Assessment
Supplier Qualification and Assessment Supplier Audit Risk Assessment Celestica employs a system of on-site and remote audits to verify Supplier Compliance system compliance with required standards and codes. We deploy Assessment Audit Audit audits, as appropriate, to assess the control of manufactur
Slide 14: Part Qualification
Part Qualification Part Approval Process One or two different validation processes will be utilized, based on industry requirements and level of risk for a given part number: • First Article Inspection Report (FAIR) is a submission of production representative samples, inspection layout and supporti
Slide 15: Global Supplier Management Toolkit
Global Supplier Management Toolkit Supplier Performance Tool Global Preferred How Does This Benefit (SPoT) Supplier List Our Customers? • A single, consistent scorecard • Consolidates global Celestica • Helps build strategic alliances used for all Celestica suppliers spend to allow customers to with
Slide 16: Global Supplier Management Toolkit
Global Supplier Management Toolkit Global Preferred Supplier List (GPSL) What is a Preferred Supplier? The Preferred Supplier Program ensures that, in areas Suppliers selected to be part of our Preferred Supplier which are not vertically integrated, we can still provide a Program will benefit from a
Slide 17: Global Supplier Management Toolkit
Global Supplier Management Toolkit Global Preferred Supplier List (GPSL) At Celestica, we take pride in working with World Class Supplier Profile the very best suppliers in the world. • Strong management commitment to quality, productivity, Suppliers who as part of our extended family, and financial
Slide 18: Global Supplier Management Toolkit
Global Supplier Management Toolkit Supplier Performance Tool (SPoT) The Celestica Supplier Management Toolkit includes our Your assigned Commodity Manager will discuss supplier performance tool called SPoT. SPoT is the only your individual goals and targets with you, scorecard used for Celestica sup
Slide 19: Global Supplier Management Toolkit
Global Supplier Management Toolkit Supplier Performance Tool (SPoT) Relentless pursuit of value creation, meet or exceed year-on-year, take- Productivity down improvement targets Delivery Quality Commitment to 100% on- time delivery while meeting Drive Operational Excellence expectations for flexibi
Slide 20: Global Supplier Management Toolkit
Global Supplier Management Toolkit Supplier Performance Tool (SPoT) Focus on key areas and initiatives to drive change and develop a Continuous Improvement culture. • SPoT Scorecard is issued per fiscal quarter • Focus on five performance categories: Productivity, Quality, Delivery, Technology and S
Slide 21: Global Supplier Management Toolkit
Global Supplier Management Toolkit Periodic Business Review As part of our Supplier Governance Cycle, Preferred Suppliers may also receive Commodity Management led business reviews including Periodic Business Reviews Typical Attendees Q1 Q2 Q3 Q4 (PBRs). These meetings promote mutual accountability,
Slide 22: Problem Resolution
Problem Resolution Problem Solving Culture Problem Solving Tools Celestica has high expectations for structured problem solving. Fishbone Diagram Management commitment is critical for budget and follow-through Eight Disciplines (8D) Design of with plans, in an environment where employees feel comfor
Slide 23: Problem Resolution
Problem Resolution Identify and address systemic issues and work with suppliers and Celestica’s plant SMEs to effectively prevent problems. Supplier Quality Improvement Process (SQIP) Our Supplier Quality Teams and Commodity Managers continuously monitor supplier performance and will work with you t
Slide 24: Risk Mitigation and Supplier Recovery
Risk Mitigation and Supplier Recovery Supplier Risk Assessments are completed to determine the impact of critical intellectual property and single/sole-source relationships. Risk mitigation plans are put in place where potential business risks are identified. Plans may include, but will not be limit
Slide 25: Change Management Process
Change Management Process Changes in the supply chain are one of the biggest causes of downstream When should I notify Celestica? variation, degraded performance and disruption. Poor change management often results in customer dissatisfaction. • Product discontinuance/end of life • Design change Sup
Slide 26: Supplier Development
Supplier Development Celestica believes in working with our supply chain in a process of Supplier Development Tools continuous improvement. It’s critical to us to fully deploy our Supplier CAPABILITY KNOWLEDGE VALUE RECOGNITION Performance Management and Risk Management model and then apply the righ
Slide 27: Driving Value and Continuous Improvement
Driving Value and Continuous Improvement An accountable workforce, delivering predictable results. Celestica TPS Expectations We have established a Celestica Tiered Production System (TPS) with objectives targeted at motivating an accountable workforce to EXPECTATIONS OUTCOMES continually improve op
Slide 28: Driving Value and Continuous Improvement
Driving Value and Continuous Improvement As a member of our Preferred Supplier Program, Celestica Supply Chain Management will work with you to share industry-leading tools to help us all become more efficient and effective in our day-to-day operations. Sales, Inventory and Operations Planning (SIOP
Slide 29: Driving Value and Continuous Improvement
Driving Value and Continuous Improvement Create a collaborative environment leveraging supplier expertise to drive value creation, GOAL: risk mitigation, and supply chain differentiation. C E L E S T I C A’ S C U S T O M E R VA L U E C R E AT I O N M O D E L Design for New Bids: Material Value Value
Slide 30: Driving Value and Continuous Improvement
Driving Value and Continuous Improvement Supplier Engagement Model Have an Idea? Value Creation Deployment There are many opportunities to communicate your ideas to your Celestica Commodity Manager, Global Commodity Engineer, or requestor. Idea Execution • As part of New Product Implementation Feasi
Slide 31: Driving Value and Continuous Improvement
Driving Value and Continuous Improvement Value-Add Value Engineering (VAVE) Value Engineering Value Creation Tools Value Creation Ideas • Six Sigma • Soft to Hard Tooling conversion • Heat Mapping • Machining to Casting conversion • Kaizen • 3D Printing to Injection Molding Conversion • Lean • Toler
Slide 32: Supplier Excellence Awards Program
Supplier Excellence Awards Program Supplier performance is fundamental to Celestica’s The Initial Award Portfolio success. The Celestica Supplier Excellence Awards is our Performance Excellence Award - Top Performing supplier in all of program to recognize suppliers who achieve the highest Celestica
Slide 33: Where do I go to find information about supplying Celestica?
Where do I go to find information about supplying Celestica? The main repository for supplier information can be found here: https://www.celestica.com/suppliers Supplier Resources include: • Supplier Portal Access • Celestica General Requirements for Suppliers of Purchased Parts • Celestica General
Slide 34: Thank You
Thank You “1 Celestica’