subject: How Supply Chain Consultancy Can Improve Productivity Of Your Organization? [print this page] 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.
by: Johan Van Hamme
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