Talk to any procurement leader in an international company and you’ll hear some common issues being raised. The lure of technology (especially big data and AI) and dangled carrots of opportunity to digitally transform the whole procurement function are all great but hard facts are getting in the way.
Companies should never confuse a supply relationship with friendship. In fact, part of the role of any good provider is to challenge its clients in a productive way. Many times, companies outsource in order to transfer the majority of risk to suppliers.
In June, Design News hosted a webcast on product lifecycle management presented by team members at Sparton, a firm that handles the both design and manufacturing efforts for low/medium-volume, high-complexity components. Their presentation, “Why Product Lifecycle Management Is an Emerging Trend,” included all of the cost, timing, and supply chain implications of PLM.
During the webcast, Sparton presenters spoke about the importance of building relationships with key suppliers. That emphasis makes sense because, in Sparton’s role as an outsourcing provider to manufacturing companies, the company sees advantages realized with those that they are able to partner with versus those that hold them at arm’s length or push back on project recommendations.
Good suppliers will bring their interests into alignment with those of their clients and make sure that the risks they are being asked to bear do not come back to bite their clients in the end. They understand that there are costs associated with each risk and, in order to service their customers efficiently, suppliers need to help them root out the causes of those risks.
This week’s webinar notes are based on a May 13th webinar presented by IASTA and Efficio, their European consulting partner. The event was recorded, and the on demand version is available on Slideshare. You can also download the presentation itself, which included quite a bit of data, directly from IASTA’s website.
Kaizen Kreativity is the fifth book by Dr. Tom DePaoli, and the third one I have reviewed. Like his other books, Kaizen Kreativity combines examples from his diverse professional past with easy to comprehend definitions and background. His lack of pretension is particularly appreciated since he often relates cases about Lean and Six Sigma. For anyone without experience using these methodologies, the terminology can be off-putting at best, and in the worst case scenario may deter people from realizing their benefits altogether.
This week’s Wiki-Wednesday article is about the challenges of capturing savings due to cost reduction and avoidance. One of the sections addresses Total Cost of Ownership (TCO), and the difficulties of calculating and reporting on those costs.