Companies "Weigh in" on Sourcing/Supply Chain Metrics And Marketing At The 9th Best Practices Xchange Symposium
The Best Practices Xchange (met on Friday, November 16, 2007 for a one day summit attended by a "Who's Who" of top Strategic Sourcing, Procurement, and Supply Chain Executives. The focus of this session was "Strategic Sourcing/Supply Chain Performance: Metrics and Marketing" and was held at the beautiful Chicago Botanic Gardens.
A hugely diverse group of Sourcing and Supply Chain professionals participated in the 9th BPX symposium to discuss performance metrics and internal marketing. This incredibly hot topic provided what some members referred to as the best meeting ever. Executives from heavy manufacturing, insurance, healthcare, consumer products, and professional services companies, joined industry thought-leaders from The Mpower Group and two of their strategic affiliates from Azul Partners and Techventive in this lively and informative peek into the inner workings of some of the world's top companies' sourcing and supply chain operations.
Members responded to a diagnostic survey created and compiled by The Mpower Group ("TMG"), who led the group discussion around both metrics and marketing. Anne Kohler, EVP and Founding partner of TMG facilitated the brisk discussion. An incredible array and range of initiatives are in place in each and every organization, although the initiatives presented are just as diverse as the industries that they represent. While every company has a unique perspective, it was generally agreed by the membership that everyone still has a long way to go.
Janice Lin, Director Global Sourcing, Caterpillar, Inc., related her organization's view of metrics: "We use People, Quality, Velocity, and Cost as our measures of effectiveness", stated Lin. "These metrics provide direct linkage with the Enterprise Strategy priorities".
Craig Meadors, VP Enterprise Operations, while discussing Internal Marketing efforts at CNA, remarked that "every interaction with a fellow employee at CNA is a marketing opportunity. We even council our staff on the content of the 30-second 'elevator conversation' that should be used." Dalip Raheja, President and Founding Partner of TMG, presented a view of the industry perspectives around performance metrics and marketing in his presentation entitled "Metrics and Marketing: Measuring, Demonstrating, and Selling the Value of Your Sourcing/Supply Chain Organization". "Metrics dashboards should have several common characteristics", said Mr. Raheja. "They should be aligned, balanced, focused, and deployed to be effective. Unfortunately, many metrics being used are tactical while the goals are all strategic. Unless we change the metrics to become more aligned to overall enterprise goals, we put those strategic goals at risk."
Regarding internal marketing, Dalip suggested that the sourcing/supply chain group "behave more like a consulting organization…. and employ the Top Ten Marketing Principles" that he then defined in detail for the audience. "Be sure to take the advice of Dr. Michael Hammer when selling sourcing internally", he added. "Don't be concerned about over-communication, remember the 'rule of fifties', benefits sell -- features don't, be distinctive in your messaging, send the right message to the right audience, and never, ever lie."
Following a lunch break and a terrific guided tour of the Chicago Botanic Gardens grounds, Jason Busch of Azul Partners, and Brian Sommer of Techventive, strategic partners of The Mpower Group, co-presented on the topic of "Left-Brain, Right-Brain Procurement Adoption: Techniques, Metrics, and Marketing".
Jason and Brian presented the concepts of "Time to Value" and "Time to Change", which should be at the center of any sourcing/supply chain initiatives. "Initiatives should be 'sold' into the organization with a view towards not only when changes can be implemented, but also when those changes will facilitate savings rolling in", they stated. Brian and Jason both suggested that external metrics be utilized to measure your internal performance. "Peer and industry metrics communicate the potential opportunities for your firm", they postulated. "They help identify best practices and the results of industry leaders, which can then be employed within your own organization."
"This was GREAT!" exclaimed Frank Cargle, Director Global Purchasing, Sidley Austin LLP, when the audience was asked to give their impromptu feedback at the end of the session.
Craig Meadors, VP Enterprise Operations, CNA, added: "This sharing of information and techniques is invaluable to keeping current in the field and in understanding where we stack up. Shared minds lead to stronger organizations."
About BPX:
The Best Practice Xchange ("BPX") is a by-invitation-only, peer-to-peer group with a charter to provide thought leadership, advanced solutions, and networking opportunities to group members. The group meets four times a year and the meetings are facilitated by the globally recognized and award-winning Oak Brook, IL based Sourcing, Procurement, and Supply Chain consultancy - The Mpower Group.
The BPX membership and influence continues to grow with announcement of the addition of the first-ever international member, Volvo Construction Equipment - Brussels. BPX addresses major Global Strategic Sourcing, Procurement, and Supply Chain Management challenges such as:
- Building world-class Sourcing and Supply Chain Management Organizations
- Supplier Relationship Management (SRM) and Governance
- Outcome Based Process Improvement
- Integration of 6 Sigma and Strategic Sourcing
- Managing IT Outsourcing Arrangements
A short list of the membership and attendees of the 9Th Best Practices Xchange Symposium includes the following companies:
VP Corporate Purchasing, Volvo Construction Equipment, Brussels
SVP & Chief Supply Office, Exelon
Director, Global Purchasing, Caterpillar, Inc.
Director of National Purchasing, Discover Financial Services
VP Supply Chain & Administrative Services, WE Energies
VP Operations - Administration, Nicor
VP Administrative Services - Purchasing and Distribution, State Farm Insurance
Director of Procurement, Sidley Austin LLP
Senior Director - Global Technology Sourcing, McDonald's Corporation
CIO & Chief Procurement Officer, FMC Technologies
VP & Chief Procurement Officer, Health Care Services Corporation
VP Enterprise Procurement Group, CNA Insurance
VP Supply Services, Ameren
Director Supply Chain, Invensys Corp.
VP Purchasing, John Deere
About The Mpower Group:
The Mpower Group ("TMG"), a State of Illinois certified minority supplier with offices in Oak Brook, IL, assists Fortune 500 organizations globally, solving complex issues related to their Supply Chain and Strategic Sourcing operations including outsourcing and off-shoring. TMG emphasizes world-class business practices related to strategy, process, and technology that truly drive superior financial results for our clients.
The mission of The Mpower Group is to Mpower client organizations to become self-reliant as quickly as possible by actively transferring skill and knowledge, while holistically integrating consulting disciplines with change management techniques. We are recognized thought leaders in Strategic Sourcing and authorities on change management, with large, complex organization experience. TMG brings focused, skilled teams to each engagement, which have a strong bias for actionable results.
SOURCE: The Best Practices Xchange