by Jan Malasek | May 26, 2020 | Strategic Sourcing, Uncategorized
Today’s rapidly changing economy has created immense challenges for manufacturers as supply markets are in flux. Materials markets as sources of supply are contracting, slowing production or disappearing entirely. The current circumstances dictate that competitive manufacturers embrace a structured rapid sourcing approach to ensure that their products remain competitive in the current deflationary environment. There are a number of success factors associated with Structured Rapid Sourcing which include: It is imperative to create a total cost model for the product to be supplied, including logistics and financing costs. Creation of a complete and transparent cost model gives the suppliers the confidence necessary to quote competitively.It is imperative to understand the supplier’s cost structure for the products to be supplied. Raw materials can represent anywhere from 10-70% of the ultimate sales price. Understanding the supplier’s cost structure is integral to the creation of a valid total cost model.Raw material markets have highly variable degrees of transparency, ranging from highly transparent markets for publicly traded metals like copper to somewhat murky markets for less common metals like tungsten or certain plastics or electronic components. When less transparent supplier commodity markets are involved, it is beneficial to go to the market on a more frequent basis.The buyer must have the ability to qualify multiple sources and to maintain those surveillances. Normally, qualifications should be established in advance of the negotiation to help manage risk and ensure that supply changes can be effected quickly, which increases the competitiveness of the market. In the current environment, it is as important to manage risk as to achieve cost savings. MATTRESS MANUFACTURER CASE STUDY We recently...
by Jan Malasek | May 12, 2020 | OnDemand Update, Uncategorized
OnDemand Resources, the leading provider of independent project and interim talent in strategic procurement, supply chain and operations is delighted to announce that David Brown has joined the firm. David is a highly experienced strategic procurement executive and consultant with significant experience supporting clients in their efforts to achieve exceptional results as they pursue cost reduction and efficiency improvement initiatives. David will assume the role of Vice President, Client Services and will be responsible for business development and client support efforts. David is a former management consultant and procurement executive with extensive experience in strategic sourcing and outsourcing focusing on indirect categories. He brings broad knowledge of procurement functions including category management, organizational assessment/design, vendor management, contract management, vendor risk and P2P systems. David started collaborating with OnDemand in 2006 when he embarked on his independent consulting career. As an independent consultant, he led 20 projects in the US and Europe across multiple industries including financial services, consumer products, gaming, government, hotels, HVAC service, manufacturing, non-profit, retail products and transportation. In addition to being an independent consultant, he was most recently VP Strategic Sourcing at Ameriprise Financial, where he led a team of 13 in the US and India supporting category and contract management in the Marketing, Real Estate, HR and Travel verticals. He also held positions as Manager of Sourcing & Category Management at ICG Commerce (now Accenture), and VP Global Sourcing at Deutsche Bank. He was a founding employee of Zeborg, a procurement technology and services startup, and a consultant with Mitchell Madison Group. The combination of corporate, top tier and independent consulting background gives David a unique perspective on how to best create value and will serve clients well as he helps them to connect with top project and interim talent. David holds a Bachelor of Arts from...
by Jan Malasek | May 7, 2020 | PMO/Project Management
OnDemand recently completed a complex, nation-wide multi-project PMO implementation effort that produced significant benefits to our client, a national collision center chain. As we see the business complexity only increasing, having strong external partner to successfully deliver critical initiatives, especially in time of uncertainty is paramount. The following case study highlights the capabilities we brought to this client – let us know how we can help your organization. Situation Overview: National collision center chain with over 350 locations, a portfolio company of a major PE firm was pursuing aggressive growth strategy. Executive leadership identified a host of strategic projects fundamental to this objective. The company tapped OnDemand partner Allen Rupple to provide PMO leadership to ensure implementation success of program initiatives. Key Focus Areas: Over the course of the engagement, Allen led several key projects and many internal delivery teams across the following areas: PRO MODEL – nationwide implementation of standardized 12-step repair operating model across all company locations. Various internal teams were focused on implementing operating standards, store blueprinting, store facility prep, “to-be” process implementation and benefits tracking. CENTRAL ESTIMATING – co-location of a specialized group of estimators providing support to all locations. This move enabled local store advisors to be much more customer-focused and was the key to significantly increase productivity. CCC ONE REPAIR WORKFLOW – system-wide implementation of a new management system that streamlined the vehicle repair process to create a superior repair experience, strengthen relationship with insurance carriers and increase overall customer satisfaction. The workflow provides a unified source and solution for the organization while eliminating many manual processes and duplicate entry/reconciliation required by multiple...
