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2010-03-25T06:33:00.001-07:00

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New trends in Supply Chain Consulting

2010-03-25T06:18:00.000-07:00

The landscape of Supply Chain Consulting is clearly moving towards a demand for a higher degree of specialisation into a defined sourcing category. The more generic kind of work with high attention on analysis has gradually shifted to a short-term, no-nonsense approach with key focus on the implementation.

With globalisation is mind, customers are also looking for consultancy companies with the ability to work internationally who understand potential cultural differences.

Together with the functional and soft expertise, cross-functionality and helicopter view still remain major contributors to the success of a given project.

More often, decisions to hire external specialist are initiated by board level members. These executives are mainly looking for solutions that are more anchored with their company’s core strategy. In the mid management range, people are still looking for consultants to fill the gap from a pure operational point-of-view.

Despite the tendency to upgrade the requirements for Supply Chain consultants, companies are not always willing to pay more for the proposed services. The global ongoing crisis can be considered as the main cause for this price pressure.

So, the importance of smaller highly focused consultancy companies is growing. Let this be a positive warning for the bigger global players.

Top 5 Tips to Reduce Costs from Supply Chain Expert

2010-03-16T01:44:00.000-07:00

“It’s all a matter of efficiency!” is what they say. Pulling costs out of your organization or avoiding spending money might be easier said then done.

Just think about a drop of sales you might expect when drastically cutting your marketing budgets or the lack of services you might initiate when “attacking” your operations.

Unfortunately many companies active in the cost-cutting field suffer from the “copy/paste” syndrome. Believing that when it works for A it should also work for B is a far too simple expression. The true value of strong consultancy companies with strong demonstration of capability lies underneath.

Hereby the top 5 tips to reduce costs from Supply Chain Expert:

1. Start with a decent spend analysis on current and future expected costs but do not make this a microscopical exercise. Getting first high level indications is good enough at this stage.

2. Translate this information into your own business context by asking questions about “must have’s”, “nice to have’s”, preferred areas, potential customer impact and implementation ease.

3. Provide evidence of cost-reduction strength by focusing on a first important project. Trying to do everything at once classically generates failures.

4. Make sure to select the right cost reduction methodology (out of approx. 15 available) for the category or project “under fire”. You might want to combine some of them into one exercise.

5. Integrate the human and business culture aspect into your equation. It will allow a smoother change-management process and will increase positive interactions with vendors and internal customers.

The recent and ongoing crisis shifted people to think differently. Supply Chain Experts with focus on “here and now” do quite well!

Just make sure to fish in the right pool of Supply Chain experts but be careful for the business sharks. Unless you want to play a role in the next “Jaws” movie.

Why is your company’s supply chain solution failing to deliver?

2010-03-03T19:39:00.000-08:00

Yes! We found the good supply chain solution that will bring glory to the company!
We will be drastically reducing our costs, streamline our deliveries and optimize our structures.

Most probably this statement is backed up by a good initial process driving towards that decision. However, are you sure to have the ability to implement this solution? Asking this critical question is of great value knowing that many senior people and managers have been dismissed due to the lack of capability to go from A to B.

Still too many top guys do work out of their marble tower without having a realistic view on the business. Field experience and knowing the context is a mandatory requirement to do things as the best student of the class. So, use your helicopter view, feel the temperature, communicate properly and swim into reality.

Hereby some key points to consider being successful in the implementation field:

What information is required and from whom?
Who are the key people to be involved?
What would be the consequential damages if not handled correctly?
What are the major bottleneck(s)?
What is the critical path to be followed?
Is this project supported by top management?
Who is the budget owner?
Are the overall savings worthwhile to start with it?
Do you generate extra internal costs with this move?
Is there a risk of hitting the final customer?
Is the type of process generally accepted?
Do you have comparable examples of previous exercises?
Is the environment ready for change?
Are you working in a conservative or a more progressive context?
What are the defined expectations and roles for all parties concerned?
Is this only one of many other similar projects (multiplication effect)?
Are there any cultural business barriers you might expect?

Make sure to incorporate all this into the first waves of your supply chain solution BEFORE you make a decision. Gathering this data might even convince you not to start with the development of your strategic thoughts anyway.

Avoid bouncing your head against the wall! Understanding were the walls are located is a good start … unless you are a fan of headaches!

Why should I hire a supply chain consultant?

2010-02-05T18:54:00.000-08:00

In this fast moving world it is quite difficult to keep up with the pace of change.
Understanding the essence by following all the trends is of major advantage to go for results now and in the near future.

Filtering out the right tree becomes even more crucial day-by-day and it allows companies to better think "out of the blue" instead of just only looking between their own walls. Knowing what is happening on the outside is more then just "fun".

Due to the changed requirements to move into the "react and execute" mode, agility has become a very popular word. Unfortunately people do no longer have the patience and expect to receive everything right here and right now. The importance of lead-time reduction is growing strongly, needless to say!

Driving process allowing companies to reduce their "time to react" while moving up to the ladder of full operational maturity is just one of the many reasons to hire an experienced supply chain consultant. Inventory management, product rotation, days-on-hand are some of the other key performance indicators that should be closely watched to be lean.

So, hereby some justification points to start with the hiring process of the right temporary consultant:

The helicopter view across various "verticals"
The ability to act in a cross-functional
The international strength combined with "local" implementation
The specific cost-reduction expertise
The capability to support change management processes
The skill set to go for "alignment"
The communicative assets and language knowledge
The project management experience
The train the trainer skills
…. To be continued

So hire a supply chain consultant before others do … speed and accuracy can make you the champion! Playing in the second league is NOT the option ….

Doing Business in Europe

2010-02-05T02:57:00.000-08:00

While crossing borders for doing business, simply having a good proposal may not be enough. For doing business in Europe – a colossal melange of several countries, it is extremely vital to know a lot about their specific cultures and style of doing business if you are to succeed.

So those of you who thought France is just a short train ride away from UK, and hence the mode of communication and business etiquette can’t be all that different; Well, it’s a good thing you chanced upon this article, as you are in for a real surprise…

Just like eating tapas is way different compared to relishing curry wurst; the differences in Spanish and German cultures are just as unique. Germans are known to be extremely business-like, to the point and really into facts and figures. As a business associate please don’t expect your client to invite you for beer and sausages at a local restaurant. Instead focus on getting your points across in a crisp manner so there is no room left for confusion. With Germans always plan your meetings at least few weeks in advance; they value their time way too much to accommodate you without a heads up.
Outgoing, warm and friendly, these are three words that can best describe Spanish folks. Expect to be invited for lunch meetings, and don’t be surprised if the meetings never start on time. Fairly laidback and relaxed, they also take time to know you before finalizing any business commitment. Also, remember that when approaching them to strike a long term deal, dress appropriately – a blend of chic and smart will be highly appreciated.
There is a lot more to the fashionable country of France than haute couture, gourmet cuisine and romantic getaways. Make sure to brush up on your linguistic skills before approaching your client. If you don’t have any background of the language, try and learn some basic greetings for a good first impression. The French like to conduct business professionally in an uncluttered fashion; good manners and polite conversations are definitely seen as plus points here. Some organizations in France may be too formal and kind of unfriendly; however, some companies may adopt a more relaxed approach. Not very finicky about being dot on time, the French will not take offence if you are fashionably late (not more than 15 minutes). But when you do show up, make sure to don the best labels in your closet. When bombarded with several questions regarding the business plan of action, be calm and factual; the over questioning may be to test your aptitude and interpersonal skills.
Strong networking skills and reference from other Italian companies will take you a long way while doing business in Italy. Dress well in this fashion forward place and make sure to socialize; do not decline any invitations as that can be viewed as disinterest or rudeness. Also, Italians totally love it when you are gung-ho about their food, culture and rich history. So go all out while breaking the ice with pleasantries.
While doing business in Great Britain please refrain from the notion that the words British and English are one and the same. Comprising of Scotland, Wales, Northern Ireland and England, Great Britain has distinct cultural differences in all its regions. Everything from attire to style of doing business is rather conservative in Britain. Punctuality is an unwritten rule and these folks aren’t so easy to impress. But remember once you are in, you are in, as they like long-lasting business relationships; hence they take their time to trust others. Maintain eye contact during meetings; be polite and focus on key facts. Emotions hardly have much space in professional meetings in Britain.
Belgians are polite people who really value their time. While doing business in Belgium, stick to hand shakes and please refrain from being late for meetings. Whether your client will talk only business, or will spend time getting to know you better is very relative in Belgium. It is best to be prepared for both scenarios. In any case, some small talk is a great way to break the ice. Structured and very business-like in their approach, Belgians don’t take very long to strike a deal. Just sticking to hard-core facts and figures is not enough to win them over. It is vital to take sentiments also into consideration to build a strong, trusting relationship with your client.
Disciplined, practical and traditional – the Dutch do business the old fashion way. While doing business in Netherlands remember that the Dutch are broad-minded people and fairly tolerant of other people’s cultural differences. At the same time, they are reserved and display of affection of emotion is uncommon in business meetings. Modesty is held in very high regard in Netherlands. Refrain from boasting or exaggerating about your achievements.

So if you are interested in doing business in Europe, you may need the assistance of experienced professionals who understand the cultural and diverse differences, and can help you get your best foot in the front door.

Sourcing from India - The Europe Perspective

2010-01-31T06:05:00.000-08:00

Johan van Hamme, Managing Director of Clear Vantage and Cu-Factor made several presentations in Mumbai and Pune on “Sourcing from India – The EU Perspective” for audiences like Chemexcil, EECP India, Generation Next Business Consulting (GNBC) and BizXchange (The Times of India).

The same topic was also discussed during the Global Economic Summit at the Taj Mahal Palace & Tower in Mumbai in front of a huge international audience.

The objectives of the various meetings was to highlight mutual opportunities between India and Europe in terms of sourcing by paying attention on how to make the story successful from a process point-of-view. Strong emphasis was also given to the various business and cultural differences, and characteristics of the most important countries were highlighted.

The full story that was positively embraced by many Indian companies was built out of:

The current economical situation in Europe on a country basis
Business culture awareness and characteristics in the EU
Requirements from EU buyers
Recent changes due to the crisis in Europe
Trends, pro’s and con’s per vertical and/or industry
Opportunities for Indian companies in terms of sourcing and/or investments

These strong guidelines developed thanks to strong sourcing and supply chain management experiences, will certainly support India in further constructing the “Business Bridge to Europe”.

Supply Chain Consulting in Europe

2010-01-31T05:53:00.000-08:00

Despite the ongoing crisis, Europe remains one of the richest and most developed areas on this globe. In order to sustain at short to mid term, many companies are looking to pull costs out of their organization in more creative ways then just reducing their headcount.

So, Supply Chain Consulting has strong opportunities on this continent.

Companies active in this “ball game” might be quite successful but only if they are able to demonstrate positive stories in anticipation of potential projects.

Without testimonials and credibility you are nowhere!

The impact of these “smart people” should not only remain restricted to facing the “external world” (called vendors) but they need to work intensively “on the inside” too.

The mix of straight cost-reductions with process improvement capability is a very strong weapon.

Just some fundamental things to keep in mind when evaluating Supply Chain Consulting specialists:

Thorough knowledge of cost-reduction methodologies is key
Process capability across the board is essential
The art of communication is more then just an enabler
Implementation possibility going from A to B
Consider Change management as a true science
Show “flexibility”, one of the “golden words” of the 21st century
The ability to use content in the right context of the customer
More then only PowerPoint specialist but real professionals.

Now it is the time to find and select the right tree. Take your time and ask a lot of precise questions ….. The golden boys and girls do exist!

Supply Chain Consultancy – How supply chain consultancy can improve productivity of your organization?

2009-12-28T03:05:00.000-08:00

Sitting on your island and doing the things you need to do might have worked for some decades! In modern times it is all about cross-functionality and interaction.

Unfortunately still too many companies are only looking for cost-reductions and improvements in a silo mode. Functional areas like human resources, finance, IT, sales & marketing, manufacturing, research & development are treated in a unique way without building the required antennas amongst each-other.

Just a few problems with such approach:

R&D might promote products that are difficult to manufacture
Engineering specifications might be exaggerated and thus too expensive to sell
HR might be evaluating people based upon the wrong KPI’s
IT might not give the required support this is “good for the business”
Manufacturing is producing at too high costs

Without any doubt, supply chain consultancy can improve the productivity of your organization.

While outlining the right process you might want to consider the following recommendations:

Develop the awareness that Purchasing serves Manufacturing & Distribution for “direct materials” but owns nothing at all
Develop the awareness that Purchasing serves the whole company for “indirect materials” (cars, travel, telecommunication, etc.) but owns nothing at all
Create a matrix of ownership of products and services within your organization
Establish a list of key decision makers within this matrix
Get high level info on the “expectations” of each owner
Start with your own area , for example purchasing as first evidence of a working methodology
Have interviews with the key purchasing people and ask them to “openly” express the potential process improvements “across the board” they see on an individual basis
Consolidate the input , line per line
Mention, for each improvement, with whom interaction (HR,Finance,etc.) would be required
Fine-tune your table by adding: net impact (€), investment needed (Capex and/or Opex), timing for implementation, champion, remarks
Categorize all improvements: easy (low hanging fruit), medium, cumbersome
Prioritize the various points (A,B,C)
Integrate the methodology of Six Sigma if desired
Disclose this powerful overview to the Management Team and ask for support for duplication towards other functional areas

Supply Chain and Purchasing executives can contribute significantly to the success of your company. With the “no-ownership” label they will be easily accepted taking the initiative for cross-functional improvements.

Open your eyes before you sink! A well aligned process can make you swim …. opt for supply chain consultancy to improve productivity.

Supply chain innovations for automotive industry

2009-12-21T05:45:00.000-08:00

Toyota, Honda, Mazda for overall viability
Audi and Lexus for the interior trim
Mercedes for long-term stability
BMW and Alfa Romeo for fun
Peugeot and Citroen for suspension

In order to support supply chain innovations for the automotive industry with a strong cost-reduction edge, you should certainly consider no-nonsense consultants. Not just a standard type of service but much better one based upon extensive field experience from both sides of the table, the car companies and the tier supplier(s). People with the ability to make things happen!

Hereby some key arguments for making this right choice, selecting consultants with:

a profound knowledge of the automotive landscape
a strong functional wisdom of the complex material flows in every stage
a clear sense of the process from innovation up till the final stage of industrialization and after-sales services
an understanding of the technical requirements
the capability to validate products and processes (audit)
extensive knowledge of various cost-cutting methodologies
a sense of speed and strong momentum
the knowledge on how to differentiate one brand to another
experience in both the original equipment and after-market world

Without in-depth experience of supply chain management, reverse auctions, value analysis, value engineering, simultaneous engineering, outsourcing etc. linked with specific technology you will not walk far in this challenging industry.

Top 10 Supply Chain Consulting Secrets

2009-12-10T05:52:00.000-08:00

Supply chain is certainly of great value to your organisation.

When done properly, all the sourcing and logistical initiatives will strongly support you by:

• Impacting your company ‘s bottom line

• Introducing the best solution out of “Total Cost of Ownership” perspective

• Creating a well balanced supply base

• Minimizing delivery risks

• Assuring a smooth communication flow both internally and externally

• Spreading the word of quality across the board

• Securing flexibility and a “breathing” structure

To make this story successful you need to upgrade, motivate and train your supply chain people yourself or you can call upon consultants to move your organisation up to the ladder. Just make sure to look at your requirements first before engaging the right guys or girls for the job.

Would you like to know the top 10 supply chain consulting secrets to my opinion?

• In-depth knowledge of various cost-reduction methodologies

• Expertise on streamlining and optimizing material flows

• Cross-functionality for the sake of detecting overall process improvements

• Change-management bullet proof

• Capability to combine strategy with implementation going from A to B

• The art of communication

• Taking initiatives and dare to speak

• Ability to work in the clients’ context

• Energy, drive and perseverance

• Flexibility to adapt to (continuous) changes

You can integrate these points into your own story and even use these as guideline for evaluating or hiring the right employees/candidates.

So there you have it, the top 10 supply chain consulting secrets.

Fishing is NOT the alternative!

Why HR managers should opt for supply chain trainings?

2009-12-07T03:08:00.000-08:00

Very clear! It’s a certainty that your company will not be successful without a well performing Supply Chain organization.

Reducing your costs on ongoing basis is mainly a matter of expertise, a sense of communication and excellent project management.

Also, streamlining your material flows, optimizing your inventory and reducing your lead times are some examples that are part of the game.

Take some time to address some of the following questions:

• Do you have sufficient capabilities in-house to make “the difference”?

• Are you looking for some kind of permanent guidance or just a one-off support?

• Are you perfectly happy with your current staff and do you trust them to reach higher levels once trained?

• Is a full review and potential re-engineering of your team the preferred option?

• Who will take the lead to assess the training content and provider?

• What would be your expectations and how much are you willing to pay?

• Will everybody be trained or only the “happy few”?

• What mechanism will you set in motion to make sure that everybody learns the story?

• Will you be engaging your own supply chain team only or also other departments?
As the “people’s voice”, Human Resources should be the key interface within your company on this topic!

Hereby enough reasons why HR managers should opt for supply chain trainings:

• It will emphasize the importance of supply chain management within your company

• It will allow people to understand their current position on the “maturity ladder” both from a personal as from a business point-of-view

• It will provide all the required methodologies and processes to reduce costs

• It will teach you how to interact with suppliers and internal customers in the best possible way

• It will strengthen the needs to focus strongly on quality

• It will help you to make the bridge to the future thanks to focus on innovation

• It will support you to interact and even challenge your local engineering community

• It will teach you that not only the price counts

• It will learn you all elements of Total Cost of Ownership

• It will give you insights on how to evaluate and audit suppliers

• It will help you to better understand financials and transactions

• It will open up your eyes on the great need for cross-functionality

• It will teach you all about the cultural business aspects of negotiations

• It will learn you how to work with mathematical models to optimize your material flows and inventory levels

• It will teach you the key points of distribution and warehouse management

• It will support you with possible low-cost country sourcing adventures

I just could continue for ages with “It will” sentences but believe me…I will stop right now!

Like for all types of services, the only solution is to get in touch with the right specialists to create consistent value now and for ever … or do you:

• Ask your doctor to check your car?

• Ask your hairdresser the fundamentals of nuclear science?

• Ask your butcher to take care of the garden?

• Ask your nanny all about chemical engineering?
Hopefully you have answered NO to these questions!

And a yes to opt for professional supply chain trainings.

How to hire the right supply chain training company?

2009-11-25T07:26:00.000-08:00

It goes without saying that well executed supply chain trainings are of great importance to your company. Having the right mix of purchasing and material flow topics will reduce your costs drastically while driving process improvements in parallel.

Not only the external partners but also your own internal people can contribute strongly to this success, at least when properly managed.

However, how to hire the right supply chain training company is a far less obvious “thing” you would expect in the first place.

Hereby some clear guidelines that will allow your company to make the right choices:

• Develop your own specific needs and requirements as starting point

• Make sure to only evaluate companies who do understand your own business context

• Have the right mixture of theory backed up with practical examples

• Avoid engaging “academicals” only unless you think this makes sense

• Analyze the scope of the proposed trainings and trigger the real value for your company

• Try to “tailor made” courses aligned with your specific wishes and expectations

• Introduce the absolute need for cross-functionality

• Avoid training companies with vertical expertise only

• Ask feedback on references and the value they delivered for other customers

• Rigidly analyze the possibility for follow-up and/or for (personalized) coaching sessions

• Pay the right price for quality

• Ask for the curriculum vitae of the trainer(s)

• Make sure they speak the “right language”

• Secure the presence of a strong business culture knowledge

• Avoid too lengthy sessions and go for a modular approach if required.

In times of rigid cost controls you might question the urgency and need to invest in supply chain trainings.

Learning from the right people will accelerate your process of climbing up the maturity ladder! Hopefully not too slippery...

Benefits of Procurement Trainings

2009-11-22T22:34:00.000-08:00

Sometimes, paying the bill could make you completely crazy!

Other then the obvious external costs you are facing, you should also analyze your company from the inside. Just to be sure you are doing the right things.

Having an efficient procurement organization could make a huge difference.

Well selected and hands-on specialists can teach you the benefits of procurement trainings for daily use. Hereby some clear reasons why to reserve energy on such courses:

• They learn you a good balance between procurement techniques, team creation and overall (project) management

• They will tell you how far you are progressed on the procurement maturity ladder

• They secure not only “vertical silo” but also cross-functional analysis

• They amplify the connections between your company’s horizontal and vertical layers in terms of dependency and (mutual) impact

• These trainings are full of benchmarking intelligence allowing to “mirror yourselves” with others

• They introduce the ability to bring the content in the right business context (company/industry specific)

• They incorporate practical sessions on supplier and internal customer interactions

• These trainings provide details from basic up till the most advanced cost-reduction methodologies (reverse auctions, value analysis, value engineering, etc.)

• They show you a mixture of strategic sourcing and operational procurement

• They give transparency on matching people with required roles and responsibilities

• These trainings combine strategic development considering the ease or complexity for implementation

• They learn you the characteristics of various services and products

• They allow the development of process improvements across the whole company

• They add legal perspectives, opportunities and constraints for supplier contracts

• These trainings can teach you country specific business behavior for your purchases

• They share the specifics on low cost country sourcing

• They amplify the value of innovation out of procurement point-of-view

• They teach you how to screen and analyze your supply base

• These training guide you on specific key performance indicators to be used

• They can support further coaching after the session

• More …more …more

You can notice a lot of benefits for booking a fully advanced or modular procurement training session! Without doubt a very good investment …..

Why supply chain trainings are needed by companies

2009-11-14T20:19:00.000-08:00

With a strong expertise on Purchasing and Flow Management you can support your company reaching the requested sky high objectives.

A competitive pricing level and guaranteed best money solution can help you to be and to stay ahead of the competition. With a strong Supply Chain you can react very agile upon the changing demands from both your internal as external customers!

However, both walk hand-in-hand with clear synergies or struggles if not done properly.
Read some questions why supply chain trainings can help your company:

• What is the sense of a very low price if you would need to wait years for your delivery?

• How do you secure the right pricing level now and in the future?

• What would be the best way to react flexible upon your customer’s requests?

• How do you anticipate reducing your supplier’s lead times?

• Do you need a golden pump when a bronze one is just good enough?

• How do you balance your business with suppliers tackled by re-sourcing activities?

• Do you have clear key performance indicators measuring inventory and its rotation?

• Which process is required for a make-or-buy decision?

• Did you ever engage various non-competing suppliers into one project?

• How do you communicate and develop and on-line bidding process?

• What is the correct pricing level for transportation from A to B?

• How do you structure excellent vendor contracts?

• What is the ideal way of streamlining your internal logistics?

• Do you consolidate your spend with other partners in industry?

• What should be the ideal lay-out and size of your warehouse?

• Is low cost country sourcing your solution for competetivity?

• How do integrate the aspect of quality into your supply chain?

• What are the golden rules and questions when dealing with suppliers?

Completely impossible for your company to be a real leader when not having clear answers to above questions!

The expected cross-functionality and the need to communicate very openly does not make live easier, emphasizing the complexity.

You could however be well armed by integrating some of below points when selecting your preferred supply chain training company:

• Check out for the right mix between theory and practice

• Make sure to call upon people who have proven field experience

• Avoid the Power-point only syndrome

• Test cases and true examples need to be integrated

• Avoid a monologue but create a dialogue by using questions and answers

• Make sure your trainer understands the business content and context

• Decline typical class-room training

• Select a partner who is well informed on recent business or functional updates

• Motivate and engage your team members for the training sessions

• Explain the clear objectives and needs for the Supply Chain sessions

• Have regular coaching “post-training”

Hope all these are sufficient arguments to make you warm for such kind of practices!

You can go to the beach and explain your friends all the details of Supply Chain Training afterwards! They will be impressed :-)

Responsibilities of supply chain firms

2009-11-08T20:25:00.000-08:00

In order to be successful in a supply chain mission, the awarded consultancy company would need to understand “the framework”. In addition to understanding the specific context of the project they would need to know of the search for the expectations defined by the customer. A clear and sealed but flexible scope description is one of the “must haves”.
Hereby some of the responsibilities and points that supply chain firms would need to consider:

• A well thought Sales & Marketing campaign with strong emphasis on the differentiators

• Have the awareness that each project would again be completely different

• A commercial offer that reflects the high quality services and project complexity

• A well defined scope of to provided services including the objectives

• Engagement of the right and motivated people for this task

• A balanced mix of strategic and operational specialist in line with the process

• Strong respect on the agreed timelines

• Secure the support from the top management including clear communication throughout the company as empowerment tool

• Initial discussions with the board and CEO/CFO on priorities

• Assure cross-functionality to reach the bottom-line results

• Have regular reviews to discuss the process and required improvements

• Develop a measurement system and key performance indicators to track progress

• To alarm the top management in case of too strong resistance

• Ask for regular feedback on “how things are going”

• Finalize your mission and communicate results

• Open the door for future opportunities

• Develop your “lessons learned” story

• Use this reference (if allowed) for sales outreach

For the sake of continuous development and team coaching it is of key importance to receive candid comments from all involved parties! By doing so you can reshape, reinforce or maintain your “winning team” to be prepared for new challenges and opportunities!

How procurement consulting can benefit your company?

2009-11-01T04:15:00.000-08:00

Did you ever calculate the ratio of purchased raw materials, components and services as percentage of your goods manufactured and/or sold?

Did you ever benchmark your own procurement organization on the results they obtained?

Are you sure to be able to perform good enough given new innovative trends that will determine the future?

Do you use “Voice of Internal Customers” surveys to determine the procurement department’s level of acceptance and to optimize its functionality?

Without any doubt, procurement consulting can benefit your company! Why would you need procurement consultants?

• They bring a lot of external experience within your company

• Their services can help your organization to think faster “out of the blue”

• They increase your capacity on a temporary basis

• Their insights can strengthen your organization

• They are used to swim in benchmarking exercises

• Their ideas can support your structures now and in the future

• They have an ideal mix of strategy and operational strengths

• Their experience is not only content but also context based

• They have a strong eye on the implementation path

• Their processes secure cross-functional alignment

• They use “Customer Satisfaction” as the initial starting point

• Their communication skills leave no question unanswered

However it is very clear that you would need to take sufficient time to find your preferred procurement consulting company. You can always use the above mentioned points for the development of your questionnaire!

Why SCM consulting is a must for any organization?

2009-10-26T07:33:00.000-07:00

Using the eye of external experts does certainly bring a wealth of experience to your company on a temporary basis. Their insights do generally reflect benchmarking activities, best functional business practices, a firm methodology and clear solutions enabling your organization to move forward.

Golden advice prepared for the future in a fast changing world.

However you must be open to welcome challenges and changes!

SCM Consulting is one of those fields where business leaders should focus on.

The mix of securing cost-reductions, optimizing your material flows and streamlining your overall processes is a strong weapon to remain competitive now and for ever.

Hereby some more explicit reasons for using SCM consulting services:

• The support you will get from highly experienced people who already climbed the full learning curve

• The capability to develop your own Supply Chain Management structure from roles and responsibilities via recruitment up till follow-up and coaching sessions

• The training sessions that can be delivered allowing your team members to increase their knowledge level on SCM related topics

• The ability to use the “train the trainer” as cascading process throughout the company

• The possibility to drive specific SCM Consultancy projects based upon proven case studies and in-depth “wisdom” on to be used methodologies

• The advantage of using as strategic report from consultants in order to convince the shareholders on the right way to be followed

• The ease to call upon identified and proven capable low-cost suppliers for manufacturing and/or servicing purposes

• The cultural business flavor and country specifics that good consultants can offer

• The experience on dealing with all kinds of change-management issues

But, make sure to select the right people offering SCM consulting. A power-point presentation only is no guarantee for success!

Best Practices for Supply Chain Solutions

2009-10-17T21:52:00.000-07:00

Too often you will see high-level strategies being developed with a rather limited focus on implementation. Supply Chain solutions can only be successful when they support the process going from A to B.

Other then just looking at the specifics of each products and/or service, it is of crucial importance to understand the business context including the impact on the organization.

Pro-actively you also would need to be aware of the internal and external expected reactions as a result of a change-management process you might be driving.

Hereby some “best practices” for securing positive Supply Chain solutions:

• First discuss with top-management on expectations and priorities

• Take your time to absorb the “culture”

• Make sure that the CEO/CFO communicates and emphasizes your presence and importance throughout the company

• Have internal meetings with all key decision makers involved with the scope you will be working on

• Organize “high-level” meetings with key suppliers in order to “feel the temperature” from both ends

• Project all your actions on a timeline with strong focus on innovations (past/now/future)

• Integrate the implementation roadmap into your strategy

• Avoid making “too big promises but “act behind the scene” in phase one

• Take care with too easy extrapolations as local culture (industry and country style) could be completely different

• Challenge and review your strategy in case of too big “mountains to climb”

• Move (gradually) towards the implementation path

• Use specific Key Performance Indicators (KPI’s) to measure the changes (ex. % of contract compliance, Completion time, Projected Savings, etc.)

Only demonstrating your specific knowledge on a given product and/or service is just not good enough! You would need to be an all-round business person with excellent communication skills and a strong sense of perseverance to succeed in implementing supply chain solutions.

Do you want to hire me?

2009-10-08T21:37:00.000-07:00

Logically you might ask yourself why you would need to hire a supply chain consultant.

Probably your first reaction would be to think of your own team’s skills, capacity and capabilities to say “we can do these ourselves”.

However, very often you would be much better of with external people. Bring the real benefits of hiring supply chain consultants in your equation:

• A wealth of gained experiences across various companies, industries and services

• “Best Practices” on Supply Chain Management easily to extrapolate to other areas

• A no-nonsense field knowledge when hiring the right consultants

• Speed of the process going from point A to B

• Lower costs at mid-term, avoiding incremental FTE’s to build up

• Capability to free up time and space within your own organization

• Not being forced to go through a complex recruitment process

• Many others

Furthermore, it is of substantial importance to focus on “Executives and Workers” with the ability to combine “strategic exercises” with “implementation”. Unfortunately a statement too frequently stated by the big consultancy companies!

Receiving academic guidelines supported by extensive power-point presentations will not help you to be successful.

Advantages of using a supply chain consultancy

2009-10-02T09:22:00.000-07:00

Being the master of your expenses is probably more crucial now then ever before.

You might be aware of some solutions but are you sure to cover the complete spectrum of cost-reduction methodologies for your business?

The extensive field experience on cost cutting is one of the advantages of using a supply chain consultancy. Who else would be able to explain and support you to tailor-made the best possible actions for your company?

Commonly used ways to eliminate and avoid high costs ramping up are:

• Incumbent negotiations

• Re-sourcing activities

• Outsourcing

• Value Analysis/Value Engineering

• Simultaneous Engineering

• Standardization Exercises

• Reverse Auctions (On-line bidding)

• Purchasing Pools

• Clear Target settings

• Low Cost Country Sourcing

• Cross-functional Process Improvements

• Rebate Systems

• Firm Vendor Contracts

• Demand Management Analysis

• Etc.

Just knowing these is of course not enough! However, bringing and using these in the right context creates a strong value for clients. Understanding the differences between for example the automotive and the pharmaceutical industry is essential!

Some thoughts and guidelines to consider strongly:

• The feasibility to use a certain method depends on the scope, situation and vertical

• Screen the whole supply chain and the timeline from creation over delivery up till follow-up services

• Think out of the blue and challenge your customers by asking “Why? What for?”

• Neglect conservatism of people, road-blocking your idea and approach

• Be aware of the “things to do” for each opportunity and figure out the potential reactions and consequences

• Develop your contingency (plan B)

• Empower your supply base to be supportive

• Assure a strong relationship with the sales & marketing team

• Why would you need a golden pump when a bronze one complies with the specifications?

• Certainly evaluate to use an on-line bidding process for “first ever” evaluations

• Are you the specialist of product X or is this more core competence for your supply base?

• Push your suppliers to provide support on your standardization process

• Use your suppliers as “mirror” for bench-marking activities

It is not the hairdresser but the astronauts landed on the moon! Hope you are convinced that every field has his experts ….. and there are many advantages of using a supply chain consultancy for efficiency and cost savings.

Supply Chain Consultancy for the Automotive Industry

2009-09-23T22:50:00.000-07:00

Around the globe you have clearly noticed the current struggle for life within the automotive industry. However, this “cry for help” situation pressurizes the classical known car manufacturers and also the probably future players coming out of China and India to think out of the blue.

In order to support this new process with a strong cost-reduction edge, you should certainly consider a no-nonsense “Supply Chain Consultancy for the Automotive Industry”. Not just a standard type of service but much better one based upon extensive field experience from both sides of the table, the car companies and the tier supplier(s). People with the ability to make things happen!

Hereby some key arguments for making this right choice, selecting consultants with:

• a profound knowledge of the automotive landscape

• a strong functional wisdom of the complex material flows in every stage

• a clear sense of the process from innovation up till the final stage of industrialization and after-sales services

• an understanding of the technical requirements

• the capability to validate products and processes (audit)

• extensive knowledge of various cost-cutting methodologies

• a sense of speed and strong momentum

• the knowledge on how to differentiate one brand to another

• experience in both the original equipment and after-market world
Without in-depth experience of reverse auctions, value analysis, value engineering, simultaneous engineering, outsourcing etc. linked with specific technology you will not walk far in this challenging industry.
Food for specialist and a certainty that only these supply chain consultants with extensive automotive experience can play a significant role in this arena!

Would you trust your Audi, BMW or Mercedes to an amateur?