A well-crafted total cost of ownership optimization strategy will be the foundation for making your company the supply chain leader rapidly.
You’re a procurement specialist who wants to transform your procurement function into a supply chain leader role but you don’t know how.
That’s why I put together this short post about turning turning your procurement function into a supply chain role quickly.
In today’s tutorial, you’ll discover :
- Why Procurement is the Front Runner to Supply Chain Leadership
- How to Get Started Establishing Supply Chain Leadership Rapidly
First you’ll want to understand the strategic role of procurement in optimizing the transaction costs of the entire supply chain. This helps getting understanding of your future role in building supply chain leadership.
Social Business ENGINE discusses why procurement is a front runner to digital transformation. Read the article >
[32:29] On this episode of Social Business Engine podcast, Dr. Marcell Vollmer delivers fascinating insights into digital transformation strategies, particularly in the strategic role of procurement Why Procurement is a Front Runner to Digital Transformation
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How to Get Started Establishing Supply Chain Leadership Rapidly
You are a procurement offer who wants to optimize your total cost of ownership. You need a simple program management process to deliver your goal.
Here is our proven program management process for getting you started rapidly.
- Send Out Request for Proposals to Your Key Suppliers
- Organize a Bidders Conference
- Evaluate Service Providers
- Select Primary Service Providers
- Establish Strategic Partnership
1. Send Out Request for Proposals to Your Key Suppliers
Every time you reduce industrial gas use, you reduce cost and exposure to liabilities.
Stakeholders are paying attention to the environment, health, safety and total cost of ownership optimization of the entire industrial gas supply chain.
This is why I created this practical video workshop for getting you started rapidly.
The first step is to request proposals from chosen industrial gas suppliers.
We’ll request proposals from chosen industrial gas suppliers in 3 steps:
- Establishing a Program Team
- Identifying Baseline Costs
- Managing the RFP Process
1. Establishing a Program Team
The first step is to appoint a program leader charged with the development and leading the program.
The leader must have intimate knowledge of the facility, the industrial gas management systems, be influential with upper management and have strong leadership and communication skills.
The team leader will define the team roles and responsibilities.
Then the team will develop goals for the business case:
- Reducing Total Cost of Ownership of Industrial Gases
- Selecting Service Provider
- Building Strategic Partnership
2. Identifying Baseline Costs
Next, the team will document industrial gas purchase costs.
The purchasing department will provide the unit prices of gases and related services (cylinder rent, tank rent, manifold rent, transport charges etc.)
The value of this documentation is that it provides a baseline for measuring the future total cost of ownership reductions.
3. Managing RFP Process
In step 3, you’ll discuss with your team and your top management champion which part of the industrial gas supply chain should be transferred to an industrial gas service provider.
- Safety Check
- Internal Handling
In this short post, you’ve learned the first crucial step to transfer buyer/supplier relations into the strategic partnership.
One important Tip!
Chose a program manager with a strong business profile for this challenging task. Don’t let IT run the show.
This will never work.
You’ll lose time, costs and top management patience.
Now it’s Your Turn
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