Global Logistics and Supply Chain Strategies - June 2008 - (Page 40) left us hanging out to dry in the presentation [to the management committee],” he says. “Nothing ever happened.” A Litany of Failure The stories of failed engagements are endless. Steve Banker, service director of supply chain management with ARC Advisory Group, has heard every variation: The loss of key project personnel at a crucial juncture. The failure to conduct proper training of employees in the client’s organization. The pushback from workers who feared the loss of their jobs—justifiably, in some cases. The promises made by vendors that weren’t kept. The list goes on, and the reasons are many. “Companies will be the first to admit that the blame is not all on the vendors,” says Banker. “They made a lot of mistakes, and can tell you what they were.” responsibility for what goes right or wrong. In such cases, says Banker, “a good part of the onus of getting the return on investment has to be with the customer.” Companies lacking strong IT or project-management skills might be better off going with a single consultant for strategy and execution, even if the cost is higher. On the Same Page It’s not the size of the consultant that determines the success of an engagement, says Rick Blasgen, a veteran supply chain executive who serves today as president and chief executive officer of the Council of Supply Chain Management Professionals. The key lies in finding the best match for a particular company. “What is it you’re trying to accomplish?” asks Blasgen. “How much are you going to How the consultant gets paid depends on the length and nature of the engagement. Blasgen likes the gain-sharing approach, in which the consultant gets a bonus for meeting certain goals, as long as they are easily quantifiable. But the client shouldn’t be in a hurry to take out its checkbook. First, it must determine whether the hard numbers set forth at the outset were actually met. It might even hold off on a payment or two until the consultant comes back to review its work. All too often, says Blasgen, companies fail to conduct this kind of post-engagement analysis. “We’re on to the next flavor-of-the-month project.” Consultants can mitigate the risk of losing an in-house sponsor by getting buy-in from that person’s boss, and as many others as possible. Large engagements often involve “The [original] consulting firm didn’t understand the workings of the company well enough at the outset. The project kind of imploded.” — Joan Padduck of Global Trade Systems Supply chain consulting engagements come in many forms, some of them harder to measure than others. At one end is the straightforward software implementation that requires no business process redesign. That’s merely a case of ensuring that the technology is installed on time and with full functionality. For such projects, a company might use a small, lower-cost consultant based outside the U.S., with experience in that particular area of technology. Before such engagements take place, however, the company might seek broader change under the guidance of a larger, U.S.based consultant. That entity lays out a strategic path for supply chain redesign. It helps the client to select the right technology tools, which are then installed with the help of the smaller, offshore vendor. Often the two consulting firms will have no direct contact, with the client handing the job from one to the other. That’s fine on paper, as long as each party fulfills its role and the project doesn’t suffer from scope creep. But the existence of two separate consultants can make it tough to measure results, and assign do yourself? What kind of experience does the consultant have within what you’re trying to do? You need to get beyond the flowery slides and marketing pitch that’s so broad it represents all things to all people.” Once those questions are answered, the company needs to establish project milestones that will demonstrate whether the consultant met the client’s goals within the agreed-to budget and time line. Strict criteria for success, such as inventory measurements and balance-sheet numbers, must be established up front. Equally important is the generation of accurate data to guide the consultant in its work. Misunderstandings arise when client and vendor can’t agree on basic information and terminology. A phrase such as “the grocery class of trade” can mean many different things, notes Blasgen, depending on whether it refers to dry, frozen or refrigerated goods. Or a discussion of shipping volumes might leave out the fact that half of all products are shipped in the fourth quarter. “You’ve got to ask the appropriate questions, then check it with the people who gave you the data,” says Blasgen. an auditing group that can further dilute the power of an individual to kill the project. The departure of the CEO can still prove fatal to the effort. But companies do the most damage to their consulting engagements when they fail to set clear goals, measure along the way and analyze the results. “There’s a viable place for consultants,” says Blasgen. “You’re just got to use them right.” To access this article online, visit The Digital Edition at www.SupplyChainBrain.com. Resource Links Aberdeen, www.aberdeen.com ARC, www.arcweb.com Council of Supply Chain Management Professionals, www.cscmp.org Global Trade Systems, www.globaltradesystems.com IBM Institute for Business Value, www-935.ibm.com/services/us/gbs/bus/ html/bcs_whatwethink.html C.F. Lynch & Associates, www.cflynch.com Niagara University, www.niagara.edu 40 JUNE 2008 www.SupplyChainBrain.com http://www.SupplyChainBrain.com http://www.aberdeen.com http://www.arcweb.com http://www.cscmp.org http://www.globaltradesystems.com http://www-935.ibm.com/services/us/gbs/bus/html/bcs_whatwethink.html http://www-935.ibm.com/services/us/gbs/bus/html/bcs_whatwethink.html http://www.cflynch.com http://www.niagara.edu http://www.SupplyChainBrain.com
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