Based on what I have seen at many companies in various industries, there is a straightforward link between “executive awareness” of the value of strategic supply management, and top management’s willingness to invest in supply management.
The road to success starts with creating executive awareness:
• Awareness of the current state of supply management practices at your company, compared to supply management best practices (this is typically accomplished via a comprehensive Current State Assessment conducted by expert resources)
• Awareness of the opportunity possible by transforming the current state into something closer to world-class practices and capabilities (this is often referred to as the Opportunity Assessment which builds upon the Current State Assessment)
• Awareness of how to create and implement a comprehensive Roadmap for Transformation, and what the associated Business Case (and ROI) look like
This is not easy to do. But, if done well, it will create the executive understanding and buy-in that you’re seeking. (For a picture of the above process, see: http://www.greybeardadvisors.com/services/procurement_and_scm_transformation/ )
Interested in a real-life example? Here are two from completely different industries (both are clients of my firm).
Company A followed our advice (and assessment methodology), created executive awareness and support, and added more than 20 new strategic personnel to its supply chain function, more than doubling the resource commitment to become a world-class procurement organization. Simultaneously, it committed to a program of Strategic Sourcing & Negotiations Management (SSNM) training for its employees that are involved in procurement, supported by experienced SSNM coaches who ensured the teams learned, adopted and applied the process effectively. Those are actions that speak loudly!
Company B also followed our advice and methodology, and made a decision to add about 50% to its current base of strategic resources, with a similar commitment to training and team coaching. Another company whose actions speak loudly.
It can be done. What are you waiting for?
SC
MR
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About the Author
Robert A Rudzki, SCMR Contributing Blogger
Robert A. Rudzki is a former Fortune 500 Senior Vice President & Chief Procurement Officer, who is now President of Greybeard Advisors LLC, a leading provider of advisory services for procurement transformation, strategic sourcing, and supply chain management. Bob is also the author of several leading business books including the supply management best-seller “Straight to the Bottom Line®”, its highly-endorsed sequel “Next Level Supply Management Excellence,” and the leadership book “Beat the Odds: Avoid Corporate Death & Build a Resilient Enterprise.” You can reach him through his firm’s website: www.greybeardadvisors.com
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