Tweet

If your company has a supply chain project, who are the top 5 companies you would call?

Written by: Jon Hansen

Article Overview: If your company has a supply chain project involving network analysis, implementing new technologies in a warehouse or strategically planning growth for the next five years, who are the top five companies you would call to help you with this and why? Drew, Director at Forte Consultants, Cincinnati, U.S.

If your company has a supply chain project, who are the top 5 companies you would call?

Given the core competency of your organization (Forte), the basis for the question is worth understanding.

Here is an excerpt from an article that I wrote late last year titled the Bands of Public Sector Supplier Engagement (see the link below). While the focus is on public sector clients, it is very much applicable to the private sector as well. In fact more so in that the transparency requirements are not necessarily as onerous as those assoicated with public sector engagement.

Excerpt Start:

“To really leverage vendor partnerships, solution providers need an in. For the public sector, that entre has to go beyond the program to the individual behind it who understands the market nuances and challenges that can hold partners back.”

From the article 25 Public-Sector Channel Leaders (ChannelWeb Network, March 19, 2007)

In one simple statement within the confines of a single article there has never been a better or more succinct explanation of what plagues public sector procurement practice today. Especially in the area of supplier development and engagement!

As you review the backgrounds of the “leaders” featured in the ChannelWeb article, one cannot help but note that 11 of the 25 individuals listed have at least 20 or more “years in the public sector,” and for the most part all represent large, multinational suppliers.

While experience is not the sole domain of the corporate giant, the relationships that are developed over a period of two or more decades combined with the high level of what I refer to as “cross pollination employment” activity certainly provide the needed “in” referenced in the article. An “in” which is by its very nature exclusive and therefore is not extended to include the vast majority of the supply market.

Excerpt Conclusion

This "in" or lack thereof presents a significant barrier to all but a few select vendors regardless of expertise or historic track record.

The point was recently driven home in a conversation I had with a internationally recognized Six Sigma author when he said (and I paraphrase), "no matter what degree of buy-in or enthusiastic reception my methodologies and teachings receive at the operational level, I have had very little success in breaking through to the senior executive level. This is needless to say frustrating as my expertise would most certainly have a significant and positive impact on their current operations."

The fact is, when you ask a question regarding the top 5 companies a client would call, there are two distinct answers and groups in which the organizations listed would not be interchangeable.

The first would consist of organizations whose main attributes are more relational versus overall competency. These are likely to be companies that are large and "connected" through a variety of mechanisms including what I had earlier referred to as cross pollination employment activity.

The second group would be comprised of smaller, more innovative organizations whose only real limitation is the fact that they have not achieved membership in the "executive club."

Given that 85% of all ERP/Supply Chain-related initiatives fail to achieve the expected results a change in mainstream executive decision-making would seem warranted.

And at least in the public sector this appears to be happening with the U.S. Federal Government's proactive efforts to unbundle contracts, making them more accessible and more mangeable for Smaller-Medium Enterprises.

Within this context, the individuals (and the organizations they represent) who respond to your question will be as interesting as the answers themselves.

Links:

To obtain a copy of the corresponding materials, please contact the author.

Related Articles
  Are Multiple Supply Chains Important (Survey Response 4)
  Are Multiple Supply Chains Important Survey Response 2
  What are the 3 biggest challenges faced by supply chain/purchasing professionals today? (Survey Result 8)
  What are the 3 biggest challenges faced by supply chain/purchasing professionals today? (Survey Result 6)
  What IT Systems Are Critical for a Retail Supply Chain?

Article Tags: article one, assoicated, confines, core competency, corporate giant, cross pollination, decades, employment activity, excerpt from, march 19, nuances, private sector, procurement practice, public sector clients, public sector procurement, sole domain, solution providers, succinct explanation, transparency, vendor partnerships



Related Forum Posts
Australian Computer Franchise looking to be taken Globally! - John I'd like to talk with you about your IT franchise project. I have a client that is looking for IT companies to support him. So, for the right companies, you would have business to offer to them from the start. Actually, in large metropolitan areas, it would be millions. Of course, I want to make sure that these companies are capable and reliable. I'd also like to learn more about your company. Alan Boyer alanboyer@leaders-perspective.com
Re: I want to turn my ebook to video - Hi, Thanks for the positive response...we have been re-designing our entire site for 1 1/2 (still are) to not only showcase our services but to help people build/grow their business through our articles. Our company currently has 8 full time employees & they have managed at times 28 part-time / contracted web designers, programmers, consultants, and internet marketers. Many times for larger projects we will bring certified vendors on...just like a construction company would if they were building a large building. Give Dan from our company a call at 952-935-4852 if you wanted to discuss a software development project. What would be the most cost effective way to build a new piece of software is hire us for the Software Architecture (i.e. plan everything out). This can be compared to a blueprint for a construction company. Once you have a blueprint you can give it to ANY construction company to build it. So even though we would like to plan + build + help you market the software this will put you in the best position to make even our own company compete for your project. Jeff
Re: Philately As An Online Business?? - I would have to agree it is a unique niche to explore - but I would propose that managing inventory of that kind is delicate and highly fragile. You will need to do your homework in setting up as an affiliate of a parent company, or if you're managing your own inventory and supply chain - you will want to research respectable partners to align with. I would suggest opening up your business to currency as well. Old stamps, current stamps, and old currency are common collector's items. An online business would capitalize on the worldwide market. Good luck!
Early Pay Discounts - Many of the supply companies I deal with, offer 10% -15% discount for early payment. This gives me the option to save a little or to go ahead and make the payment at the end of the month. The option to pay the bill in the timeframe that works better for me is a nice option. Most of the people who I do work for, pay me in three stages and rarely is there a delay in payment. One company is a large company that I really want to work with on a regular basis, so I work with their payment schedule. Any unusual payment arrangements are finalized before the contract is signed - this gives me advance warning if there will be delays in getting paid. Chris
Company services - Hi, In addition of not providing a good service, we are loaded with the new technology telephone systems. Here in the UK we have automated telephone answering. It takes quite a while to get to the desired sevice, then all over a sudden your cut off. One has to start all over again. Sometimes it can add hours ie waiting or redialing. In addition, we have numbers, which can add costs to the phone bill. One number in particuliar, the company gets some money back. If it is a charitable company, it can benefit them. More often than not, it is a legitimat company. Does that sound familiar? How can we overcome these lengthy calls etc.? Many times I deal by email and often benefit from a quick and satisfactory service. Often they call me, which I appreciate. [quote="ChrisH":1b1ok76u]I am familiar with the reasons why they could have customer service issues. But, if there is another company who wants my business and will give me customer support, why waste my time with a company who doesn't offer support for me? Over the years, I've dealt with enough companies who didn't care they had lousy customer service. There have been times when I mentioned that I liked their prices and products etc - but other companies offered better service and that can be just as important. Far too many didn't care and had no desire to make any changes. I'd rather focus on doing business with the companies who support me as a customer and who show they appreciate my business. Chris [/quote:1b1ok76u] Regards Beat


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Tweet

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

RULE YOUR BUSINESS LIKE A SHINE STAR

Five keys to business success

Why Small Businesses Don't Survive

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.