Member Benefits
2014
March
In this issue you’ll find updates about upcoming PDM’s and an interesting from Breakout Solutions. You will also read about openings for the ISMCentral Indiana Board of Directors for the 2014-2015 program year and some member benefits!
CONTENTS: Member Benefits 1 Board Openings 1 Upcoming PDM: March 2 Upcoming PDM: April 2 (317) 889-9225 www.ismcentralindiana.org [email protected] October
Upcoming PDM: May 2 Breakout Solutions Article 3
Member Benefits Did you know there are several valuable perks to being a member of ISM-CI? Don’t forget to take advantage of the ISM benefits that are yours as a member of ISM-CI:
1. Job Board You have access to job postings from around the country 2. Newsline The ISM newsletter is full of information regarding the activities, objectives and best practices of the collective chapters 3. Events ISM hosts a wide array of educational and training events and seminars throughout the year. Find one near you!
Call for board members Interested in becoming more involved in ISM-Central Indiana? Do you want to help shape the future of the organization? We will have openings on the Board of Directors for the 2014 – 2015 program year, and the nominations committee is gearing up to find the best possible candidates for those positions! If you are interested in participating on the Board, or want more information before throwing your name into the hat, please contact Erica Voetsch, Vice President of ISM-CI at [email protected], or by phone at 317-441-9200.
Upcoming PDM March PDM: Paper to Electronic Conversion Date: Thursday, March 20, 2014 Time: 5:30 PM - 8:00 PM Location: Maggiano's 3550 E 86th Street Indianapolis, Indiana 46240 Speaker: Spokesperson from RR Donnelly
Upcoming PDM April PDM: Flexible Staffing Models Date: Wednesday, April 16, 2014 Time: 5:30 PM - 8:00 PM Location: Oak Hill Mansion 5801 E 116th Street Carmel, Indiana 46033 Justin Christian from BC Forward, a local consulting and staffing company, will speak about flexible staffing models and the changing workplace, and dinner will be a turkey dinner at the Oak Hill Mansion in Fishers.
Upcoming PDM May PDM: Consulting Investment Date: Thursday, May 15, 2014 Time: 5:30 PM - 8:00 PM Location: Primo's South 2615 National Ave. Indianapolis, Indiana 46227 Jonathan Weatherly from Towers Watson, a national consulting investment advisory company will be our speaker. We will enjoy good company and a buffet style dinner.
One Year to a Stronger Supply Chain A step by step guide of the basics
Part 1 – Know Your Numbers By: Ann Baker, M.P.A. and M.B.A. President, Breakout Solutions, LLC
Welcome to Supply Chain Basics 101 – Part 1. Whether your budget is $10,000 or $10M, basic principles exist that can be used in every company. Success starts with knowing where you are from a numbers perspective and knowing where you need to go. When we think about purchasing and supply chain, the most common thought is about spending money with suppliers on goods. Yes, this is a big part of supply chain management, but there is much more to consider. Focus on other aspects of your business too. How does your spend match up to your budget? What does your cash flow look like? How much of your supplier base is attributed to diverse suppliers? How much time does it take to move through your purchasing program? What do your inventory turns look like, how efficient is your logistics program? Understanding these (and other) basic concepts will establish the foundation of your supply chain program. This month, we will build a dashboard together that includes data important to you. You will use it through the year as we move between each category, so keep it handy. Remember, you need good data to make improvements. I was speaking with a world class runner a couple years ago at a national cross country race. He said he is always asked about what people can do to run faster. His response was “If you want to run fast then run fast.” It seemed like a simplistic response at the time. After additional conversation, it came to light that two thoughts go into this. First, have the determination to run fast; and second, use the right tools that enable goal attainment. Dashboards are tools. When you are looking for improved performance, you need to use the right tools and use them correctly. For example, wearing cowboy boots to run a 5K is just not as effective as wearing a good pair of Saucony’s. Holding a manual stop watch to time splits works okay, but if you are serious about knowing your data and improving times, a running watch that self calculates, stores real time data and uploads to useable spreadsheets provides information that can be used to improve the next run. So if you need to run fast and make improvements, use the right tools to make that happen – make sense? Many good software packages exist for those who have a need to automate or have a larger process with many moving parts. If you are ready for an automated EDI or ERP type SCM program, give me a call and I will be happy help you navigate through the various software programs available for your needs. For purposes of this column, we will focus on the basics. A good basic foundation will enable you to take information and apply it to more complex models as you grow your program or business. There are many forms and versions of dashboards. The easiest low cost and basic dashboard format is developed using Microsoft Excel. What to include on your dashboards:
Deciding what to include on your dashboard should be a collaborative effort that considers the leadership goals, company vision and your department objectives.
Every company has its own unique goals. What they have in common are mostly likely similar KPI’s. Below is a list of some basic SCM KPI’s that are regularly used:
Top Suppliers by Spend, Category, or Distinction Savings by category, commodity or supplier Controlled Spend ratio Net payment terms increase/savings Competitive Bid Events Inventory turns WBE/MBE ratio # Suppliers under contract Projects on Budget
Choose 4-5 that most directly affect the outcome of your organizational goals and overall vision. Keeping the dashboard simple and easy to read as well as use is important. Too much information will be a waste of time down the road. How often you update your numbers is entirely up to you. Be sure to pick a consistent timeline to protect the integrity of the reporting and the numbers. The standard practice is to review is monthly. What you should know about dashboards: Every dashboard is as unique as the company or business unit it represents. For those not familiar with using dashboards or relying on the tracking of data, here are couple ideas to will help you as you develop and use yours:
1. How to read –Every dashboard should use current and accurate data and should include information that shows change from the previous month as well as a trend over the past year. When looking at your 4-5 categories of data, understand the trends of each KPI, but also understand how they affect each other. 2. How to use - Dashboards are best understood as a snapshot in time. Think of them as a barometer on the health of your procurement program. If you see a dramatic change or a trending up or down in an area that was not expected, this is a red flag to dive deeper into that category to investigate the issue further. 3. How to communicate the data both internally and externally – Data is meaningless unless shared with those who are affected by it or can affect the numbers. Internally, relevant information should be shared with functional teams, management, and leadership along with suggestions for moving forward based on the results. Externally, you should be sharing data on your suppliers with your suppliers. What? You say? Yes, I did say share with your suppliers. Suppliers like to know how they are doing. I am not suggesting you tell him how they stack up to their competitors. I am advising you to share appropriate data on a project where they worked directly and provide that feedback to them. This feedback backed by real numbers helps them to improve their internal processes making them better suppliers to you. See how that cycle works? The top three ingredients for business success today are Focus, Focus, and Focus. Remember the dashboard is not the strategic plan. It is a tool to track the plan and help maintain a focus for your leadership. Success starts with knowing where you are first. This includes having good data to build your foundation. You will need all hands on deck and working as a team to keep your dashboards meaningful to your company’s focus and that includes solid communication. Good luck with building your dashboards.
Ann’s expertise lies with strengthening the supply chain and purchasing power of her clientele to achieve streamlined results. Ann leverages 20+ years of regulatory, supply chain, lean six sigma & business expertise with scalable solutions customized to the client.
Contact us to learn how to update your ERP or WMS systems. Learn more about DraftOnce, document assembly made easy.
Ann may be reached via [email protected] or give her a call at (317) 663-4873. At Breakout Solutions LLC, We Have Your Solution.
Member 411
(317) 889-9225 www.ismcentralindiana.org [email protected]
March
In this issue you’ll find updates about upcoming PDM’s and an interesting from Breakout Solutions. You will also read about openings for the ISMCentral Indiana Board of Directors for the 2014-2015 program year and some member benefits!
CONTENTS: Member Benefits 1 Board Openings 1 Upcoming PDM: March 2 Upcoming PDM: April 2 (317) 889-9225 www.ismcentralindiana.org [email protected] October
Upcoming PDM: May 2 Breakout Solutions Article 3
Member Benefits Did you know there are several valuable perks to being a member of ISM-CI? Don’t forget to take advantage of the ISM benefits that are yours as a member of ISM-CI:
1. Job Board You have access to job postings from around the country 2. Newsline The ISM newsletter is full of information regarding the activities, objectives and best practices of the collective chapters 3. Events ISM hosts a wide array of educational and training events and seminars throughout the year. Find one near you!
Call for board members Interested in becoming more involved in ISM-Central Indiana? Do you want to help shape the future of the organization? We will have openings on the Board of Directors for the 2014 – 2015 program year, and the nominations committee is gearing up to find the best possible candidates for those positions! If you are interested in participating on the Board, or want more information before throwing your name into the hat, please contact Erica Voetsch, Vice President of ISM-CI at [email protected], or by phone at 317-441-9200.
Upcoming PDM March PDM: Paper to Electronic Conversion Date: Thursday, March 20, 2014 Time: 5:30 PM - 8:00 PM Location: Maggiano's 3550 E 86th Street Indianapolis, Indiana 46240 Speaker: Spokesperson from RR Donnelly
Upcoming PDM April PDM: Flexible Staffing Models Date: Wednesday, April 16, 2014 Time: 5:30 PM - 8:00 PM Location: Oak Hill Mansion 5801 E 116th Street Carmel, Indiana 46033 Justin Christian from BC Forward, a local consulting and staffing company, will speak about flexible staffing models and the changing workplace, and dinner will be a turkey dinner at the Oak Hill Mansion in Fishers.
Upcoming PDM May PDM: Consulting Investment Date: Thursday, May 15, 2014 Time: 5:30 PM - 8:00 PM Location: Primo's South 2615 National Ave. Indianapolis, Indiana 46227 Jonathan Weatherly from Towers Watson, a national consulting investment advisory company will be our speaker. We will enjoy good company and a buffet style dinner.
One Year to a Stronger Supply Chain A step by step guide of the basics
Part 1 – Know Your Numbers By: Ann Baker, M.P.A. and M.B.A. President, Breakout Solutions, LLC
Welcome to Supply Chain Basics 101 – Part 1. Whether your budget is $10,000 or $10M, basic principles exist that can be used in every company. Success starts with knowing where you are from a numbers perspective and knowing where you need to go. When we think about purchasing and supply chain, the most common thought is about spending money with suppliers on goods. Yes, this is a big part of supply chain management, but there is much more to consider. Focus on other aspects of your business too. How does your spend match up to your budget? What does your cash flow look like? How much of your supplier base is attributed to diverse suppliers? How much time does it take to move through your purchasing program? What do your inventory turns look like, how efficient is your logistics program? Understanding these (and other) basic concepts will establish the foundation of your supply chain program. This month, we will build a dashboard together that includes data important to you. You will use it through the year as we move between each category, so keep it handy. Remember, you need good data to make improvements. I was speaking with a world class runner a couple years ago at a national cross country race. He said he is always asked about what people can do to run faster. His response was “If you want to run fast then run fast.” It seemed like a simplistic response at the time. After additional conversation, it came to light that two thoughts go into this. First, have the determination to run fast; and second, use the right tools that enable goal attainment. Dashboards are tools. When you are looking for improved performance, you need to use the right tools and use them correctly. For example, wearing cowboy boots to run a 5K is just not as effective as wearing a good pair of Saucony’s. Holding a manual stop watch to time splits works okay, but if you are serious about knowing your data and improving times, a running watch that self calculates, stores real time data and uploads to useable spreadsheets provides information that can be used to improve the next run. So if you need to run fast and make improvements, use the right tools to make that happen – make sense? Many good software packages exist for those who have a need to automate or have a larger process with many moving parts. If you are ready for an automated EDI or ERP type SCM program, give me a call and I will be happy help you navigate through the various software programs available for your needs. For purposes of this column, we will focus on the basics. A good basic foundation will enable you to take information and apply it to more complex models as you grow your program or business. There are many forms and versions of dashboards. The easiest low cost and basic dashboard format is developed using Microsoft Excel. What to include on your dashboards:
Deciding what to include on your dashboard should be a collaborative effort that considers the leadership goals, company vision and your department objectives.
Every company has its own unique goals. What they have in common are mostly likely similar KPI’s. Below is a list of some basic SCM KPI’s that are regularly used:
Top Suppliers by Spend, Category, or Distinction Savings by category, commodity or supplier Controlled Spend ratio Net payment terms increase/savings Competitive Bid Events Inventory turns WBE/MBE ratio # Suppliers under contract Projects on Budget
Choose 4-5 that most directly affect the outcome of your organizational goals and overall vision. Keeping the dashboard simple and easy to read as well as use is important. Too much information will be a waste of time down the road. How often you update your numbers is entirely up to you. Be sure to pick a consistent timeline to protect the integrity of the reporting and the numbers. The standard practice is to review is monthly. What you should know about dashboards: Every dashboard is as unique as the company or business unit it represents. For those not familiar with using dashboards or relying on the tracking of data, here are couple ideas to will help you as you develop and use yours:
1. How to read –Every dashboard should use current and accurate data and should include information that shows change from the previous month as well as a trend over the past year. When looking at your 4-5 categories of data, understand the trends of each KPI, but also understand how they affect each other. 2. How to use - Dashboards are best understood as a snapshot in time. Think of them as a barometer on the health of your procurement program. If you see a dramatic change or a trending up or down in an area that was not expected, this is a red flag to dive deeper into that category to investigate the issue further. 3. How to communicate the data both internally and externally – Data is meaningless unless shared with those who are affected by it or can affect the numbers. Internally, relevant information should be shared with functional teams, management, and leadership along with suggestions for moving forward based on the results. Externally, you should be sharing data on your suppliers with your suppliers. What? You say? Yes, I did say share with your suppliers. Suppliers like to know how they are doing. I am not suggesting you tell him how they stack up to their competitors. I am advising you to share appropriate data on a project where they worked directly and provide that feedback to them. This feedback backed by real numbers helps them to improve their internal processes making them better suppliers to you. See how that cycle works? The top three ingredients for business success today are Focus, Focus, and Focus. Remember the dashboard is not the strategic plan. It is a tool to track the plan and help maintain a focus for your leadership. Success starts with knowing where you are first. This includes having good data to build your foundation. You will need all hands on deck and working as a team to keep your dashboards meaningful to your company’s focus and that includes solid communication. Good luck with building your dashboards.
Ann’s expertise lies with strengthening the supply chain and purchasing power of her clientele to achieve streamlined results. Ann leverages 20+ years of regulatory, supply chain, lean six sigma & business expertise with scalable solutions customized to the client.
Contact us to learn how to update your ERP or WMS systems. Learn more about DraftOnce, document assembly made easy.
Ann may be reached via [email protected] or give her a call at (317) 663-4873. At Breakout Solutions LLC, We Have Your Solution.
Member 411
(317) 889-9225 www.ismcentralindiana.org [email protected]
