Showing posts with label supplier. Show all posts
Showing posts with label supplier. Show all posts

Friday, March 14, 2014

Employee Engagement: "It's Not in My Job Description"

For me, the sentence, "It's not in my job description", is a huge red flag.

It's a sure sign someone is not a team player.  It's a sign someone is a taker, not a giver. It's a sign someone is self-centered, putting their importance ahead of others.

I think I've said before how influential summer jobs can be, and today I'd like to share with you why I feel so strongly about the phrase in the title of this post.

Between my second and third years in university, I worked in the drill squad of the world famous Fort Henry Guard, based in Kingston, Ontario.

One of the unofficial mottoes of the Guard was "Remain Flexible".  The meaning of this was that, at any time, you could be asked to be a sentry, on gun drill, tour guide or cleaning up. Duties for sentry duty or gun drills were assigned each day, but sometimes we had more visitors than expected, which meant you had to be prepared to take on some new assignments.

While this may have been just a summer job, I think these principles hold true in any well-run organization.


In larger organizations, we tend to be slotted into narrowly defined roles and responsibilities that make it hard to be as flexible as we were at Old Fort Henry.  In smaller organizations, the ability to be functional in job roles outside your core responsibilities is vital.


At one company, our purchasing manager lost both parents within weeks of each other.  She was overwhelmed not only with the loss, but also the responsibilities of attending to both their estates.  As a result, she found it difficult to keep up with her job responsibilities, and purchasing was an area in which we were extremely thin on manpower.


While this was happening, we were also having quality issues with a company that supplied a critical laminated material for one of our products.  They were unable to identify for us whether the issues was the result of a fault in the lamination process or a defective batch of material. We knew we needed to find an alternate supplier for this lamination, and the process for finding one was normally managed by purchasing.


Because of the quality issue, we were prevented from manufacturing a product for one of our key customers, who were anxious to know when we would be able to re-commence supply.  They needed answers, not excuses.


I offered to take the lead on finding alternative suppliers because, in the end, it was a customer-driven issue: we had a customer who could not market their product because we were unable to supply a critical component.  So, while my job role was sales, handling a purchasing issue was also a way of solving a supply chain issue for a customer.


The more I researched companies who made one of the materials in the lamination we purchased, the more I came to realize there were literally only a handful of companies in the world who had the capabilities of making the material used, let alone being able to meet our specifications.  (Our customer thought there would be hundreds of companies who made this material and changing suppliers could be done in a couple of weeks). We were fortunate that two of those suppliers were located within a half-day's drive of our plant, so I visited them both to get a better understanding of the challenges in making the material we needed.


One of these suppliers analyzed samples of the lamination we used - both past and current - and determined that the incumbent had, despite protests otherwise, switched recipes and companies they purchased their materials from.  We now had scientific evidence to support our allegations there had been material substitutions.


A few weeks later, when our purchasing manager returned from bereavement leave, I took her to meet the company we felt represented the best opportunity to supply the lamination we needed.  This gave her a chance to see the plant as well as meet the executive team and allowed me an opportunity to transition the supplier search back to her so she could begin qualification trials.


Taking on a task normally done by purchasing gave me some insights into the challenge purchasing people face in searching for and selecting suppliers.  Given the circumstances, it helped forge a stronger relationship between sales and purchasing While helping the company respond to a customer in need.


When I left this company, the purchasing manager was the first person to come into my office and give me a hug and tell me how much they'd miss me.  I was really touched by this and it is a moment I will never forget.


I hope you can see that, in this situation, the roles of sales and purchasing were very strongly interdependent. Had we stuck to our job roles, we might still have solved the supply chain issue for our customer, but at the cost of several weeks being unable to supply them. Blurring the lines between sales and purchasing in this case demonstrated that our company really required a team effort to survive - and thrive.





Saturday, December 28, 2013

Employee Engagement: "It's Not in My Job Description"

For me, the sentence, "It's not in my job description", is a huge red flag.

It's a sure sign someone is not a team player.  It's a sign someone is a taker, not a giver. It's a sign someone is self-centered, putting their importance ahead of others.

I think I've said before how influential summer jobs can be, and today I'd like to share with you why I feel so strongly about the phrase in the title of this post.

Between my second and third years in university, I worked in the drill squad of the world famous Fort Henry Guard, based in Kingston, Ontario.

One of the unofficial mottoes of the Guard was "Remain Flexible".  The meaning of this was that, at any time, you could be asked to be a sentry, on gun drill, tour guide or cleaning up. Duties for sentry duty or gun drills were assigned each day, but sometimes we had more visitors than expected, which meant you had to be prepared to take on some new assignments.

While this may have been just a summer job, I think these principles hold true in any well-run organization.


In larger organizations, we tend to be slotted into narrowly defined roles and responsibilities that make it hard to be as flexible as we were at Old Fort Henry.  In smaller organizations, the ability to be functional in job roles outside your core responsibilities is vital.


At one company, our purchasing manager lost both parents within weeks of each other.  She was overwhelmed not only with the loss, but also the responsibilities of attending to both their estates.  As a result, she found it difficult to keep up with her job responsibilities, and purchasing was an area in which we were extremely thin on manpower.


While this was happening, we were also having quality issues with a company that supplied a critical laminated material for one of our products.  They were unable to identify for us whether the issues was the result of a fault in the lamination process or a defective batch of material. We knew we needed to find an alternate supplier for this lamination, and the process for finding one was normally managed by purchasing.


Because of the quality issue, we were prevented from manufacturing a product for one of our key customers, who were anxious to know when we would be able to re-commence supply.  They needed answers, not excuses.


I offered to take the lead on finding alternative suppliers because, in the end, it was a customer-driven issue: we had a customer who could not market their product because we were unable to supply a critical component.  So, while my job role was sales, handling a purchasing issue was also a way of solving a supply chain issue for a customer.


The more I researched companies who made one of the materials in the lamination we purchased, the more I came to realize there were literally only a handful of companies in the world who had the capabilities of making the material used, let alone being able to meet our specifications.  (Our customer thought there would be hundreds of companies who made this material and changing suppliers could be done in a couple of weeks). We were fortunate that two of those suppliers were located within a half-day's drive of our plant, so I visited them both to get a better understanding of the challenges in making the material we needed.


One of these suppliers analyzed samples of the lamination we used - both past and current - and determined that the incumbent had, despite protests otherwise, switched recipes and companies they purchased their materials from.  We now had scientific evidence to support our allegations there had been material substitutions.


A few weeks later, when our purchasing manager returned from bereavement leave, I took her to meet the company we felt represented the best opportunity to supply the lamination we needed.  This gave her a chance to see the plant as well as meet the executive team and allowed me an opportunity to transition the supplier search back to her so she could begin qualification trials.


Taking on a task normally done by purchasing gave me some insights into the challenge purchasing people face in searching for and selecting suppliers.  Given the circumstances, it helped forge a stronger relationship between sales and purchasing While helping the company respond to a customer in need.


When I left this company, the purchasing manager was the first person to come into my office and give me a hug and tell me how much they'd miss me.  I was really touched by this and it is a moment I will never forget.


I hope you can see that, in this situation, the roles of sales and purchasing were very strongly interdependent. Had we stuck to our job roles, we might still have solved the supply chain issue for our customer, but at the cost of several weeks being unable to supply them. Blurring the lines between sales and purchasing in this case demonstrated that our company really required a team effort to survive - and thrive.





Tuesday, August 6, 2013

Employee Engagement: "It's Not in My Job Description"


For me, the sentence, "It's not in my job description", is a huge red flag.

It's a sure sign someone is not a team player.  It's a sign someone is a taker, not a giver. It's a sign someone is self-centered, putting their importance ahead of others.

I think I've said before how influential summer jobs can be, and today I'd like to share with you why I feel so strongly about the phrase in the title of this post.

Between my second and third years in university, I worked in the drill squad of the world famous Fort Henry Guard, based in Kingston, Ontario.

One of the unofficial mottoes of the Guard was "Remain Flexible".  The meaning of this was that, at any time, you could be asked to be a sentry, on gun drill, tour guide or cleaning up. Duties for sentry duty or gun drills were assigned each day, but sometimes we had more visitors than expected, which meant you had to be prepared to take on some new assignments.

While this may have been just a summer job, I think these principles hold true in any well-run organization.


In larger organizations, we tend to be slotted into narrowly defined roles and responsibilities that make it hard to be as flexible as we were at Old Fort Henry.  In smaller organizations, the ability to be functional in job roles outside your core responsibilities is vital.


At one company, our purchasing manager lost both parents within weeks of each other.  She was overwhelmed not only with the loss, but also the responsibilities of attending to both their estates.  As a result, she found it difficult to keep up with her job responsibilities, and purchasing was an area in which we were extremely thin on manpower.


While this was happening, we were also having quality issues with a company that supplied a critical laminated material for one of our products.  They were unable to identify for us whether the issues was the result of a fault in the lamination process or a defective batch of material. We knew we needed to find an alternate supplier for this lamination, and the process for finding one was normally managed by purchasing.


Because of the quality issue, we were prevented from manufacturing a product for one of our key customers, who were anxious to know when we would be able to re-commence supply.  They needed answers, not excuses.


I offered to take the lead on finding alternative suppliers because, in the end, it was a customer-driven issue: we had a customer who could not market their product because we were unable to supply a critical component.  So, while my job role was sales, handling a purchasing issue was also a way of solving a supply chain issue for a customer.


The more I researched companies who made one of the materials in the lamination we purchased, the more I came to realize there were literally only a handful of companies in the world who had the capabilities of making the material used, let alone being able to meet our specifications.  (Our customer thought there would be hundreds of companies who made this material and changing suppliers could be done in a couple of weeks). We were fortunate that two of those suppliers were located within a half-day's drive of our plant, so I visited them both to get a better understanding of the challenges in making the material we needed.


One of these suppliers analyzed samples of the lamination we used - both past and current - and determined that the incumbent had, despite protests otherwise, switched recipes and companies they purchased their materials from.  We now had scientific evidence to support our allegations there had been material substitutions.


A few weeks later, when our purchasing manager returned from bereavement leave, I took her to meet the company we felt represented the best opportunity to supply the lamination we needed.  This gave her a chance to see the plant as well as meet the executive team and allowed me an opportunity to transition the supplier search back to her so she could begin qualification trials.


Taking on a task normally done by purchasing gave me some insights into the challenge purchasing people face in searching for and selecting suppliers.  Given the circumstances, it helped forge a stronger relationship between sales and purchasing While helping the company respond to a customer in need.


When I left this company, the purchasing manager was the first person to come into my office and give me a hug and tell me how much they'd miss me.  I was really touched by this and it is a moment I will never forget.


I hope you can see that, in this situation, the roles of sales and purchasing were very strongly interdependent. Had we stuck to our job roles, we might still have solved the supply chain issue for our customer, but at the cost of several weeks being unable to supply them. Blurring the lines between sales and purchasing in this case demonstrated that our company really required a team effort to survive - and thrive.



Friday, April 19, 2013

Think Long And Hard About Offshoring

By: David Jones
Like outsourcing, but over more time-zones in different languages and cultures, offshoring is a huge step to take if you haven't done it before. Getting it right can open up new avenues for increased productivity for a whole host of your organisation's processes. Getting it wrong can mean the "O word" is never mentioned again and your organisation is burdened with costs that competitors divested long ago.

Offshoring Models - Take Your Pick
Should you be considering a lower risk & reward partnership with a Big Four consultancy who own the offshore relationships, or a more "do it yourself" approach where you put all the offshore supplier relationships in place? On the other hand would you prefer to acquire or establish a business offshore? The typical risks and rewards of the models can be significantly different, so take a bit of time getting this decision right. Some companies take a progressive approach; they get help with the earlier offshored processes, and then ultimately transition to establishing their own organisation offshore.


Before You Do Anything
If you haven't offshored before, consider offshoring "back-office" rather than "front office" processes first and don't try to reinvent the wheel. Start by selecting the right project manager; someone who's "been there" and "done that" before. If you're not partnering with a "Big Four" consultancy and you can't wait for headhunters, give some thought to interim management as an alternative. Whatever route you take though, don't risk using someone who looks good, but actually hasn't done it before. You'll need someone who knows what actually happens, who really knows the key risks and how to mitigate them; someone who knows which are the emerging markets and those which are more mature.


Once you've found your experienced offshorer, give them unambiguous terms of reference and then build a full time multi-disciplinary offshoring team around them. If you think you can't afford to build a multi-disciplinary team, for the duration of the project, think again. Can you afford not to?


What's The Worst Case Scenario?
Before you go much further, get the team to work out what the likely benefits will be and also what your offshore disaster recovery plan is going to look like and cost. The latter may be a rapid re-onshoring of the process, but whatever it looks like, it's best to know what the worst case scenario is and decide whether the risk-reward ratio is right sooner rather than later.


Consider Re-Engineering Before Offshoring
In the rush to offshore, most companies overlook this, but whichever model you choose it's better to optimise your processes before you offshore them. This has several benefits. It ensures that the key steps to process success are documented formally, rather than them remaining carefully guarded secrets in your employees' heads. Understanding current process performance also helps to develop confidence about what level of improvements are likely to be achievable. The application of lean techniques can reduce the cost of a business process (before offshoring) by between 20-30% and reduce in process inventory levels and lead times by 50%. That way you capture the savings before the transition to offshore, otherwise your eventual supplier will retain them. Importantly simplification will help to make the process more robust, whoever's ultimately operating it.


Engaging With Offshore Suppliers
Identify what the key success factors for an outsourced relationship are, and issue a Request for Information (RFI) to potential suppliers. From this identify what additional benefits the offshore suppliers should be able to provide because they are specialists in the field.


Be absolutely clear about what your performance expectations are from the beginning. Set these as objectives when you first meet with long-listed suppliers, and repeat them for conditioning purposes at every important meeting. Back this up with a contract which includes comprehensive service level agreements (SLAs) as schedules; and where you want ongoing performance improvements draft clauses with win-win incentives.


Make sure that you get your "supplier quality assurance" assessments right. Run in-depth diagnostics inside the short-listed suppliers' businesses and let your process experts find out how suppliers really do things.


If you've comprehensively specified your requirements, give serious consideration to using e-Sourcing (e-Request for Information, e-Request for Quotation & Reverse e-Auctions) to minimise suppliers' prices, but don't forget to take account of any fixed costs which will be left behind and will have to be shared amongst the remaining onshore cost centres.


When you've selected your supplier, run "on-shore" trials with "offshore" employees to prove the concept and develop and train supplier "super-users", then run "offshore" pilots, before rolling the solution out on a grand scale.


Then when the relationship is established put full time supplier relationship managers in place, who understand in detail how the onshore process worked, and will work inside your offshore suppliers to drive continuous improvement against the SLAs and maintain service quality.


Conclusion
Yes offshoring has its risks, but a carefully managed project led by someone who really knows what they're doing, can open up an entirely new range of opportunities to improve your organisation's performance.


Author Bio
David Jones works for Executive Interims - Supply Chain Practice providing supply chain interim management services - see www.executive-interims.co.uk/interim_management/interim_management.asp .