|
NAPM-Lehigh Valley, Inc. 2010 FEBRUARY NEWSLETTER |
PROFESSIONAL DEVELOPMENT MEETING (PDM)
Monday – FEBRUARY 22, 2010 - Meeting will be held at the Best Western – Lehigh Valley Hotel & Conference Center Route 22 & 512. Phone: 610-866-5800.
This month we welcome Dr. Robert J. Trent, our Scholarship Award winners, senior Supply Management executives from area companies and students from the Supply Management Program at
Our Professional Development portion of the meeting will be a Global Resources Forum consisting of senior Supply Management executives from area companies. The emphasis will be on international Supply Management issues.
Students from
Please plan to join NAPM-LV for this exciting event.
Directions: Take Route 22 to Route 512 north. Turn right at the first stop light onto Gateway Drive. Follow Gateway Drive approximately 400 yards to the parking lot. Enter through the main entrance.
Dinner Reservations: Responses due by
Respond to john.rine@mineralstech.com or phone 610-882-8617 or fax 610-882-1166.
Cost: Members – no charge Guest - $25 Students - $10 Checks payable to NAPM-LV
Networking: 5:00-5:45pm
Scholarship Awards: 5:45-6:00pm
Dinner: 6:00-6:30pm
Global Resource Forum: 6:30-7:20pm
Global Resources Chair - Susan Simon
The Do’s and Don’ts of Procurement Outsourcing
By Andrew Miller, president of ACM Consulting
According to the Black Book of Outsourcing report published recently, procurement outsourcing is the fastest-growing back office area of business process outsourcing (BPO). The market is forecast to expand to $1.1 billion market this year - from $700 million in 2008 – and by 2012 it is expected to pass the $3.5 billion mark, representing a 41 per cent compound annual growth rate.
Many companies realise outsourced procurement is the future, but do not know how to take the proper steps to maximise value in these relationships. Here are 10 do’s and don’ts when considering moving to a outsourced buying model:
Do … 1. Research potential outsourcing providers This should include talking with their existing customers to develop a sense of how clients are treated and the benefits that they are achieving.
2. Develop a detailed transition plan for your organisation A transition plan should identify how staff transition will be handled, which roles will move to the outsourced provider, which will remain in-house and which positions become redundant.
3. Retain someone to manage the relationship Outsourcing relationships can become complicated and time-consuming to manage so you need to retain someone with the appropriate expertise to manage the relationship.
4. Identify specific service levels to be met You need to understand what service levels you will be receiving and what courses of action you have if they are not being met to your satisfaction.
5. Develop a business case Analyse the costs and the benefits - both short and long-term - to ensure that outsourcing is the right move for your organisation.
6. Determine the scope of what is to be outsourced Which operations do you want to outsource and which (if any) do you want to retain? The scope of the agreement should be based on the response to this question.
Don’t ... 1. Regard this as a quick fix to your procurement problems Outsourcing will not fix all of your internal procurement problems, so clean up your own backyard before moving.
2. Sign a contract that has not been reviewed by someone you trust Outsourcing agreements are long and complicated and should be reviewed by a trusted source who can advise you on risks of the agreement.
3. Choose a company without a proven track record You want to ensure that the outsourcing provider you select has shown proven benefits for other clients, and can leverage their experience to improve your results.
4. Get caught up in the latest trend Procurement outsourcing should be a strategic decision and requires a great deal of thought, as well as being prepared for a cultural shift within your organisation. Outsourcing arrangements can be very beneficial if organisations perform due diligence beforehand. Following the list above will help to identify areas of concern before moving forward. * Andrew Miller is president of ACM Consulting (www.acmconsulting.ca), which provides operational and procurement advice to companies of all sizes around the world.
Monday – FEBRUARY 22, 2010 - Meeting will be held at the Best Western – Lehigh Valley Hotel & Conference Center Route 22 & 512. Phone: 610-866-5800.
This month we welcome Dr. Robert J. Trent, our Scholarship Award winners, senior Supply Management executives from area companies and students from the Supply Management Program at
Our Professional Development portion of the meeting will be a Global Resources Forum consisting of senior Supply Management executives from area companies. The emphasis will be on international Supply Management issues.
Students from
Please plan to join NAPM-LV for this exciting event.
Directions: Take Route 22 to Route 512 north. Turn right at the first stop light onto Gateway Drive. Follow Gateway Drive approximately 400 yards to the parking lot. Enter through the main entrance.
Dinner Reservations: Responses due by Respond to john.rine@mineralstech.com or phone 610-882-8617 or fax 610-882-1166. Cost: Members – no charge Guest - $25 Students - $10 Checks payable to NAPM-LV Networking: 5:00-5:45pm
Scholarship Awards: 5:45-6:00pm
Dinner: 6:00-6:30pm
Global Resource Forum: 6:30-7:20pm
By Andrew Miller, president of ACM Consulting
According to the Black Book of Outsourcing report published recently, procurement outsourcing is the fastest-growing back office area of business process outsourcing (BPO). The market is forecast to expand to $1.1 billion market this year - from $700 million in 2008 – and by 2012 it is expected to pass the $3.5 billion mark, representing a 41 per cent compound annual growth rate.
Many companies realise outsourced procurement is the future, but do not know how to take the proper steps to maximise value in these relationships. Here are 10 do’s and don’ts when considering moving to a outsourced buying model:
Do … 1. Research potential outsourcing providers This should include talking with their existing customers to develop a sense of how clients are treated and the benefits that they are achieving. 2. Develop a detailed transition plan for your organisation A transition plan should identify how staff transition will be handled, which roles will move to the outsourced provider, which will remain in-house and which positions become redundant. 3. Retain someone to manage the relationship Outsourcing relationships can become complicated and time-consuming to manage so you need to retain someone with the appropriate expertise to manage the relationship. 4. Identify specific service levels to be met You need to understand what service levels you will be receiving and what courses of action you have if they are not being met to your satisfaction. 5. Develop a business case Analyse the costs and the benefits - both short and long-term - to ensure that outsourcing is the right move for your organisation. 6. Determine the scope of what is to be outsourced Which operations do you want to outsource and which (if any) do you want to retain? The scope of the agreement should be based on the response to this question. Don’t ... 1. Regard this as a quick fix to your procurement problems Outsourcing will not fix all of your internal procurement problems, so clean up your own backyard before moving. 2. Sign a contract that has not been reviewed by someone you trust Outsourcing agreements are long and complicated and should be reviewed by a trusted source who can advise you on risks of the agreement. 3. Choose a company without a proven track record You want to ensure that the outsourcing provider you select has shown proven benefits for other clients, and can leverage their experience to improve your results. 4. Get caught up in the latest trend Procurement outsourcing should be a strategic decision and requires a great deal of thought, as well as being prepared for a cultural shift within your organisation. Outsourcing arrangements can be very beneficial if organisations perform due diligence beforehand. Following the list above will help to identify areas of concern before moving forward. * Andrew Miller is president of ACM Consulting (www.acmconsulting.ca), which provides operational and procurement advice to companies of all sizes around the world.
Global Resources Chair - Susan Simon
