Global Logistics and Supply Chain Strategies - June 2008 - (Page 37) work for a large frozen-foods company. Each year for four years running, the company would hire the same consultant to examine the same problem. Each year its recommendations would be stuck in a drawer and forgotten. “I like the work and money,” Ampuja says, taking the consultant’s point of view. “But I’d much rather have you do something.” For each of his engagements, Ampuja asks two things of the client: a sincere focus on cost reduction, and a commitment to managing internal change. He tries from the beginning to weed out those companies that suffer from organizational paralysis. Some engagements are done on a flat-fee basis, with the burden of implementation left to the client. As Ampuja puts it, “We can give you the road map, but you have to drive the car.” The other approach rewards the consultant when its recommendations yield actual results, such as money saved from process streamlining, or inventories reduced. This notion of “gain-sharing” is a risky one for the consultant, which faces obstacles such as corporate politics, management change and reorganization. Ampuja prefers the latter arrangement, assuming the client is game and likely to embrace his group’s conclusions. In such cases, he insists on senior-level backing within the company, and an agreed-upon time line for the appearance of results. To guard against unanticipated changes, the client agrees to pay a certain amount for the consultant’s work if the project is scuttled by a major event, GLOBAL LOGISTICS & SUPPLY CHAIN STRATEGIES 37
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