Closing Gaps: The Tier Two Perspective on Supply Chain Success
Description
When OEMs change their schedules or requirements, the ripple effect through the supply chain can feel like a game of telephone. Messages get passed down the chain, sometimes altered and ignored, leaving those further down the line piecing together what has changed.
That's the reality for Jenni Smith, VP of Supply Chain at Royal Technologies, who joins the show to share what managing that complexity as a tier two supplier is like.
She explains how this constant guessing game makes planning nearly impossible and why direct visibility into the "why" behind OEM decisions is just as important as the numbers themselves.
Jenni clarifies that communication and speed are non-negotiable, but doesn't stop there. At Royal, automation is a core strategy, not a side project. She talks about the company's use of robotics to offset labor challenges and how AI is helping them forecast demand, spot volatility, and identify risks months in advance.
The conversation then turns to MMOG/LE. While many treat it as a compliance headache, Royal approaches it differently, using it as a framework to uncover process gaps, improve efficiency, and strengthen profitability.
Jenni gives a practical example with packaging standards: on paper, Royal could pass certification, but by actually listening to warehouse teams and standardizing packaging, they unlocked real cost savings and smoother operations.
But systems and standards only go so far if people are burning out. Jenni is candid about "supply chain fatigue" in today's unpredictable environment. Instead of ignoring it, she leans into knowing her team, rotating responsibilities, giving people recovery time, and jumping into the trenches alongside them during crises.
When asked what she'd like to see from tier ones, Jenni's answer is simple: open the doors and invite tier twos in. Real efficiency happens when suppliers can see processes firsthand, ask questions, and solve problems together instead of working in silos. Engagement, she says, is the foundation of stronger relationships up and down the chain.
Looking ahead, Jenni's focus is on stability—aligning Royal's supply base to MMOG standards and preparing for the next disruption before it hits. With a culture that values quality, delivery, innovation, and people in equal measure, Royal Technologies proves that even a tier two can lead the way in how supply chains adapt to the future.
Themes discussed in this episode:
- How OEM requirement changes travel through EDI and disrupt tier two suppliers
- Why communication speed and context are critical for supply chain stability
- The role of automation and robotics in reducing labor constraints and boosting efficiency
- Using AI for demand sensing, forecasting, and identifying supply chain risks months in advance
- How MMOG/LE can be used as a tool for profitability and process improvement rather than just compliance
- The rise of supply chain fatigue post-COVID and strategies to prevent burnout in small teams
- The value of AIAG membership for tier two suppliers and how it supports training and collaboration
- Why stronger engagement between tier one and tier two suppliers is key to solving problems and building efficiency across the chain
Featured on this episode:
Name: Jennifer Smith
Title: Vice President of Supply Chain at Royal Technologies
About: Jennifer is the Vice President of Supply Chain at Royal Technologies Corp., bringing more than 20 years of leadership experience across every corner of the supply chain. Her career spans strategic sourcing, purchasing, supplier quality, demand planning, materials management, customer service, and ERP implementations—always with a focus on building and guiding high-performance teams.
Her expertise also extends to financial analysis and operations management, making her a versatile leader with a proven record of achieving results in complex, cross-functional environments. Known for her clear communication and collaborative style, she consistently delivers outcomes that strengthen both performance and relationships across the supply chain.
Connect: LinkedIn
Mentioned in this episode:
- Materials Management Operations Guideline/Logistics Evaluation (MMOG/LE)
- Automotive Trade Compliance Masterclass
- Supervisor Boot Camp
Episode Highlights:
[02:58 ] From Grocery to Gears: A listener question on EDI changes sets the stage as Jennifer Smith joins the show, bringing a unique supply chain journey from grocery aisles to automotive tiers.
[04:31 ] The Telephone Game: Jenni Smith explains how OEM changes ripple down like a game of telephone, leaving tier twos guessing unless clear communication and context are shared.
[06:41 ] Never Too Much: In supply chain, silence is costly—every delay or vague update leaves teams scrambling, which is why constant, fast communication is the only way to keep production aligned and avoid chaos.
[07:33 ] Robots and Foresight: Royal turns to robotics and AI to cut labor strain, spot risks early, and keep supply flowing long before problems hit the OEMs.
[09:02 ] AI in the Trenches: From forecasting demand swings to predicting part shortages months ahead, Royal is using AI to move from reactive firefighting to proactive supply chain control.
[10:26 ] Small Fish, Smart Systems: Royal stays nimble between giant customers and suppliers by leaning on ERP and integrated data to boost efficiency and keep plants connected nationwide.
[12:01 ] Beyond the Checklist: MMOG/LE becomes more than compliance when it’s used to uncover weaknesses and turn them into opportunities for stronger, more profitable supply chains.
[13:08 ] Culture Over Compliance: Instead of treating MMOG/LE as a burden, Royal’s leadership uses it to strengthen quality, streamline processes like packaging, and turn efficiency into real cost savings.
[15:26 ] Fighting Supply Chain Fatigue: With constant disruption taking its toll, Jenni shares how flexibility, cross-training, and hands-on leadership keep teams resilient and prevent burnout.
[19:46 ] Open the Doors: Jenni calls on tier ones to invite suppliers in, share their processes, and solve problems together instead of keeping partners at arm’s length.
[22:24 ] Strengthening the Base: Looking ahead, Jenni sets her sights on building stability by aligning Royal’s supply base with MMOG standards to brace for future risks.
Top Quotes:
[06:59 ] Jennifer: “My biggest advice for the tier twos is twofold: You can never over-communicate. Communication is the key, especially through the tier ones and down to the tier twos. And the second thing is that the speed at which communication happens is also critical. So, it's not just that you communicate, but not lagging on that communication for a few days, and making sure we can get it as fast as possible. That allows us to adjust schedules, make sure we're working the weekend before you want to work, and any of those types of adjustments to allow the flow to happen back up quickly.”
[12:19 ] Jennifer: “I think it's really important for the listeners to understand that MMOG is not a tier one requirement or an OEM requirement. When we look at what MMOG really is, it's the best practices across the organization. And we used MMOG to find our gaps, and where we have pieces that are potentially not going to allow us to be profitable in the long term because of supply chain, either risks, or process gaps. Take the assessment, not as a requirement, but as a way to make yourself better.”
[22:02 ] Jennifer: “Engage, open your doors, and invite. I think when our teams have gone to our tier ones and learned about why and how they do something, it has not only built the relationships, but it's grown efficiencies. And we just had some of our team over at one of the big tier ones, looking at their receiving and why they receive something one way. And it's going to change the way our warehouse is set up to ensure that there's efficient picking versus just going through the warehouse to pick somebody's product. And I think that as long as they're engaged and they're open and allowing their suppliers to come in and see and really work through problems together, that's the best thing.”