Nov
2
Why Management Consulting Still Has A Role To Play For Improving Your Supply Chain
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Management consultants received a poor press during the late 1990’s and early part of the 21st Century. Originally they had been viewed as some kind of God, then some kind of pariah, who were often out of touch with some of the more recent thinking and innovative management techniques. The often stated criticism was that they would charge a lot of money to tell you what you already knew.
However, management consultants soon ‘wised up’ to the challenge of being a management consultant in the 21st Century and started to specialise, many having particular skills or training in some specialised fields of management.
For example, it is now possible to secure a management consultant who is a logistics expert. They can help you to look at the way that you organise logistics and suggest areas for improvement. This can reduce the costs associated with logistics, streamline the processes used and ensure that performance is maximised; all in one go!
Management consultants can also establish performance metrics for the organisation and then go on to look at the Key Performance Indicators that can really help to establish exactly how your organisation is performing.
Some management consultants specialise in procurement, so they are able to advise on the best way that procurement can happen and often have experienced change and resistance to change in organisations, so they are able to work with all departments to help implement some of the changes that may be required, following changes to the way that procurement is made.
Specialists In Software and Technology
Many management consultants now straddle a fine line between being IT literate, to a very high degree and being management consultants. However a good management consultant will now be able to look at the problems that an organisation has, or at its performance and make recommendations on how technology can be applied to standardize and simplify.
This can be invaluable, because it is almost like having an IT specialist and a traditional management consultant all wrapped up into one person. However, it also helps the organisation on different levels, because it isn’t just about management and it isn’t just about IT; it is about both together and that is of critical importance.
A Fresh Pair Of Eyes
One great thing about a management consultant is that they offer a fresh pair of eyes, looking at your organisation in a way that you probably would like to, but find it difficult. The management consultant is independent (in a sense) and objective, so he or she will not be swayed by personal history or by internal politics. They don’t know the history and they won’t be involved in the politics, so they can simply come in and see what is going on and then report back with suggestions for improvement. The fact that they have typically experienced a variety of businesses also helps achieve senior buy-in for change as they represent a much more credible voice to senior stakeholders.
Assistance and Collaboration
The management consultant is ideally placed to facilitate between organisations who wish to work collaboratively. Often it can be difficult for companies to approach each other, but the management consultant is independent enough to make this relatively easy. So they can set out the process for collaboration in a way that is not threatening to either of the parties.
Managing Change
The final real benefit of management consultants is that they can help organisations to cope with change. Often the best plans in the world are thrown out because the staff are so resistant to change that the new plans are simply rendered unfeasible. However, a good management consultant will help to alleviate this resistance and ensure that the service improvements that are required, can be implemented in a way that is smooth and hassle free!
Oct
13
Role of Project Management within procurement and supply chain
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Project management principles are essential in order to successfully manage business change. Initiatives, either improvement or strategic, are commonplace. This is especially true within the supply chain function. For example consider the activities that are carried out as part of improvement programs in many organizations these may include:
• Outsourcing key activities like assembly or manufacture
• Moving from a local to global supply chain
• Supplier rationalization
• Deploying corporate deals
• Cost reduction programmes
• Lead time reduction programmes
• Inventory rationalization
• Technology deployment
These sorts of activities require complex co-ordination of resources to deliver a defined objective within a set timescale – in other words they are a project. Those leading the initiatives need the appropriate skills and techniques as well as the detailed supply chain experience if the initiative is to be a success.
An all too common issue is where businesses appoint personnel who have no formal project skills or experience to deliver. This lack of experience and use of appropriate tools and methods can dramatically impact cost and schedule and more impact heighten the risk of project failure.
So what disciplines does project management provide and why is this an advantage? Consider the following
Scheduling and Planning:
One of the key facets of project management is developing and maintaining accurate delivery schedules that take into account project dependencies and resources.
Risk Management:
Understanding risk and more importantly having an appropriate risk management plan can prevent both cost and schedule over run and in the case of many supply chain projects ensure continuity of supply.
Business case and financial awareness
Both developing the rationale for undertaking the project and ensuring that the costs for executing it are covered are a key task. Subjective assumptions regarding business initiatives can result in projects failing to deliver to expectations. A robust business case will provide the rationale for proceeding with the initiative together with a sound understanding of likely benefits.
Quality Systems:
Integral to project management is ensuring that quality systems are built in to any project and this is of relevance to the supply chain process. There is no point in securing goods in a strategic manner with low costs, if they are not fit for purpose and meet business need.
Roles and Responsibilities:
Any good project manager will ensure that responsibilities are clearly set out, with key personnel identified as being responsible for specific items within the schedule. This ensures the smooth running of the initiative.
Communication
A key element of business change that is often overlooked by inexperienced personnel is stakeholder management and communication.
Project Management is fundamental to successful supply chain initiatives.
In a sense then, project management offers the procurement executive the foundations upon which he or she can build a good, strategic procurement plan. Without the foundations of project management there may be a strategy but no basis upon which to deliver in with the results ad hoc, sporadic and poorly delivered.