published 11/30/2022 By Michael W. Gozzo Purchasing 1,131 Views

INTRODUCTION:

This will be the initial article of four (4). The titles are:

  • TODAY’S ISSUES & ENTERPRISE ALIGNMENT
  • EMPLOYING COLLABORATION VIA STRATEGIC SOURCING
  • PROCUREMENT, COST & LEVRAGING TECHNOLOGY
  • RISK MANAGEMENT & INVENTORY OPTIMIZATION

TODAY’S ISSUES:

The intent of this series of articles is to impart practices that will provide the best possible performance for an enterprise. In so doing, to exercise the mental capacities of the readers, so they can apply this new knowledge in their respective business.

Today’s competitive issues are driven by our customers! They are looking for:

  • Better pricing
  • Improved availability of goods/services
  • Quality
  • Responsiveness
  • To be flexible/adaptable to various changes

Various publications and news agencies are saying, “Times are tough, but not as unusual as you may think”

These are not such strange times when you look at history. When was the last time that any country had a continuous 10-year period without an economic change – inflation/recession?

We have been here before, so what did we do to get us out of this situation? Dr. Deming (noted author/consultant) said “VARIATION IS OUR ENEMY”! Where is this enemy? All around us in the way we address our problems/issues in both personal and the business environment. What and how we execute to correct problems is slow, disjointed and without intent/control to eliminate its cause.

There have been studies by eminent entities:

  • Aberdeen Research
  • Institute of Supply Management
  • Manufacturing Executive Leadership Council
  • Council of Supply Management Professionals

Their most implemented findings were:

  1. Involve leadership
  2. Providing knowledge & how to employ it
  3. Total Cost of Ownership (TCO)
  4. Commodity Management
  5. How to use Technology
  6. Employing Collaboration
  7. Minimizing Risk

To utilize this information, we need to shift gears and address the next segment of this initial article ENTERPRISE ALIGNMENT.

ENTERPRISE ALIGNMENT:

To begin with, there is a need to lead a CULTURAL CHANGE. The things that need to be done are

  • Communicate to all employees that a “controlled change” is necessary
  • Encourage them to get/be involved
  • View the entire organization as a team
  • Break down walls that inhibit communications
  • Give people a sense of mission
  • Communicate positive & negative business results

Note that there NEEDS TO CHANGING ROLES:

  • MANAGEMENT:
    • Promote cultural change
    • Manage by observation
    • Use supervisors as coaches
    • Provide incentive & recognition
    • Schedule time for dialogue & problem solving
  • EMPLOYEE INVOLVEMENT & EMPOWERMENT:
    • Identify the stakeholders
      • People with a vested interest – includes manager, employees, customers, suppliers
    • Individuals involved in the process being addressed
      • Take advantage of their respective expertise, intelligence & creativity
    • Empower them – providing them decision making responsibility/authority

    By doing these alignment adjustments, it is preparing the organization to deal with change and overcome the gap between organizational performance and expectations.