Archive for September 3rd, 2008

Communication as an E-procurement Implementation Enabler

September 3, 2008

A while back Gustav Hasselskog posted an eight point list of advice relating to how to make e-procurement a success. In the discussion that followed; there was a consensus that the need for “selling the product” (point number seven on the list) cannot be underemphasized.

To sell e-procurement one needs to ensure that end users both understand the why and the how. This is the basic prerequisite for change. The organization needs to fully agree with the reason and objective of the change as well as getting training in the new procedures (be it processes or tools). Change requires effort and as humans we must believe that the rewards are greater than the urge to resist.

Communication (I’ll get back to training in a later post) does not only rely on the message being sent, it is a complex issue depending on context, communication channel, codes and feedback. Messages are often distorted (and misread) due to the sender not being aware of the surrounding factors. Thus communication often fails.

The best way to ensure that every one gets the message is to invest time and effort into a stakeholder analysis that generates a comprehensive communications plan. By identifying the stakeholders, targeted information can be sent to these groups using appropriate channels. This means that everyone will receive the necessary information, yet no one will experience information overload. It’s also important to remember that this is not a one-off effort; communication needs to be constant throughout the entire change process. Treat it as an ongoing process instead of an activity.
For example; a successful roll-out project can include project specific newsletters, a dedicated intranet site, end-user competitions and posters that were distributed and hung in affected offices.

  • Newsletters can be distributed on a monthly basis to both management and important stakeholders as well as to trainers in order to get everyone on the same level, ensuring that all background information was available to all that need it and keeping everyone informed of the process. One can also look at opportunities to present the project in newsletters that belong to other organizational units – by using existing channels information hit rate will rise.
  • Most companies have employee magazines or other employee news media; use them to promote and explain the initiative and spread the word around.
  • By creating a dedicated intranet site which is frequently updated with project specifications, supplier status, training schedules and target descriptions information can be sought out by all, further enhancing the information hit rate.
  • End-user competitions can be used to lighten up the roll-out project. It can be as simple as giving away movie tickets to who ever places the 50th order.
  • In time for go-live; increase the information intensity by providing physical poster that can be hung in the offices of the affected units.

It’s also important to remember that once go-live is achieved; the need for communication does not diminish. Keep the users informed of the progress and allow them to feedback their experiences. By taking the communication needs of your audience seriously, chances are that your message will get through loud and clear.

Vertical Integration Revisisted

September 3, 2008

Recent comments and analysis concerning the state of the steel industry (Supply Excellence here and Spend Matters here) have pointed out that there is a strong trend of vertical integration going on; “certain industries now realize that these “old school” routines could help business” as Spend Matters Jason Busch puts it. WSJ reports that a growing number of steelmakers are shopping for iron-ore mines.

But using vertical integration as a strategic advantage never really went away; it just received a bad reputation. For instance, back in the late eighties/early nineties, as most companies were going horizontal; IKEA took a look at what they were doing and decided to go the other way. With a long history of doing business in Eastern Europe, IKEA founded Swedwood, to ensure supply in what they believed would become volatile times after the fall of communism. IKEA needed to safeguard itself against the loss of vital suppliers, and actively played a role in the privatization of their former suppliers.

Today, IKEA/Swedwood takes an active interest in the whole wood based furniture value chain; from forestry operations to sawmills and the board industry.

The reason IKEA did it back in the early nineties is the same that the steel industry is citing today: ensure supply and quality at competitive prices.

And if you haven’t forgotten your purchasing basics; that’s why you’re in the business.

And You Thought Youtube Was Just For Kicks – Think Again – Supply Chain Video

September 3, 2008

One of the great things about user created content and the so called web 2.0 technologies is when these tools and ideas are picked up by professionals and used for non-entertainment purposes.

My favourite pastime at the moment is checking out the supply chain videos compiled Ehsan Ehsani on Supplychainer.com. Most of the content linked from youtube.com and have been published by a wide array of publishers big and small.

If you have been led to believe that web sites such as Youtube is for kids or for after curricular activities; think again. If you don’t believe me, just check out how online publishers such as GasgooTV  use Youtube as the medium to provide indepth analysis of the Chinese automotive industry.