How to Select Innovative Supplier Partners Using a 5-Step Project Management Approach

January 30, 2010 by admin  
Filed under Unique System

Now more than ever, supplier selection must produce stellar results as companies increase their focus on supply chain management and push more requirements down the chain to their partners. Business continues, but with different strategies. For example, Siemens AG plans to reduce costs by centralizing 47% of its procurement spending by 2010, compared to its current level of 29%.

Clearly, companies are viewing changes in supplier management as a way to gain more value from their partners. Consequently, performance expectations are increasing, and companies are using their supplier partnerships as a means of driving innovation. Using the right supplier selection tools can play a critical role in building value-based relationships.

So, how can you ensure a successful selection process?

What is the Project Management Approach to Selecting the Best Suppliers — And How Will It Help Your Organization?

The Project Management Institute (PMI) model serves as an excellent framework for procurement activities. This structure can help procurement teams focus their attention on each key element in the selection process and identify the real treasures in their potential supplier base. The PMI model identifies five process groups teams can use to design and manage a value-based selection process. These are:

1. Initiating – Ensures the support of leaders in your organization so you can move forward.

2. Planning – Critical for identifying all of your business needs.

3. Executing – Provides a structured approach for evaluating bids to guarantee desired results.

4. Monitoring and Controlling – Forces you to evaluate and incorporate any new information.

5. Closing – Formalizes results and establishes a plan for implementation.

Initiating – The First Critical Step in Selecting an Innovative Supplier Partner

In the Initiating phase, the sourcing of a product or service is approved and key players are identified, including stakeholders and the project team. This is critical in large organizations where a product or service such as a communications process, for instance, touches a multitude of business units and functional groups.

For example, the General Motors (GM) dealer communications process involves approximately 10 constituent groups within GM alone. When the dealer relations team needed to identify a new supplier, they canvassed the corporation. They identified each department that used the process, even those that only sent materials to dealers occasionally. This group of stakeholders was involved up front, and the team was able to avoid issues later in the procurement activity.

Planning – A Phase That Must NOT Be Shortchanged Just So You Can Find a Supplier Quickly

The team uses the Planning phase to flesh out business and performance requirements in detail. Each stakeholder group feeds its unique set of expectations to the team, who then incorporates them into the requirements. The team identifies the risks, scope, cost targets, and timing of the procurement effort.

This phase has some unique aspects for a procurement project, the most important of which is identifying qualified potential suppliers. The team should think creatively about how the new supplier must create value and provide benefits that were missing in the past. With proper planning, an organization can move from having suppliers who just sit on the sidelines to having real value partners who support the strategic vision. For instance, suppose a sales organization wishes to upgrade its online store and improve order-processing time. They must identify a fulfillment supplier with strong IT capabilities and state-of-the-art warehousing.

A note of caution on the Planning phase is in order. Procurement teams must resist the temptation to shortchange this step in the name of finding a supplier quickly. The task of identifying requirements can take months, as was the case with GM’s dealer communications process. Identifying requirements up front will uncover possible conflicts and inadequacies. For example, if a benefits solutions group wants to implement a web-based application process, they need to know whether their existing technology infrastructure will accommodate such a change. Knowing these things will help the team come up with a realistic task list and timeline for implementation.

Executing – The Third Critical Step in Selecting an Innovative Supplier Partner

In the Executing phase, the team brings to bear the fruit of the Planning phase by creating and distributing a Request for Proposal (RFP) that reflects the business requirements. The team uses the requirements to develop evaluation and ranking tools, and then uses these tools to assess each response to the RFP.

The team identifies a subset of suppliers as candidates for negotiations, and conducts a series of detailed discussions that include clarification of the RFP response, scope issues, schedule, and other areas of concern. This step includes multiple rounds of pricing discussions that will lay the groundwork for a final selection.

Monitoring and Controlling – The Fourth Critical Step in Selecting an Innovative Supplier Partner

In the procurement context, Monitoring and Controlling involves a review of the scope, requirements, schedule, and other metrics involved in the evaluation. This review creates an opportunity to refine assumptions and get feedback from the respondents on their ability to meet or exceed the stated performance goals. Teams can use the feedback to calibrate the performance goals and to make tradeoffs of scope versus schedule, for example. Then they can create a more realistic set of performance goals, if appropriate. The team documents changes to performance metrics, scope, and schedule, and presents these for approval as well.

Closing – The Last Critical Step in Selecting an Innovative Supplier Partner

Closing is the last phase of the project. Here the team recommends a supplier to the appropriate groups, and the purchasing managers develop the contract documents. The procurement team develops guidelines on details to watch for while managing the new contract. For example, if the team awards a contract to a web developer on the condition that the developer commits additional resources for implementation, the commitment needs to be captured in the guidelines to ensure it is not overlooked. This document also serves as a reference for future procurement activities, including any follow up work with the selected supplier.

This five-step method is an indispensable tool for addressing current and future requirements, particularly for multifaceted contracts involving diverse stakeholder groups within your organization. Using it will ensure your ability to select a partner with the vision and capabilities needed to create a sustainable, scalable solution that advances your strategic goals.



By: Monica Johns

About the Author:

With more than 25 years experience in manufacturing, product line management, program management, and outsourcing initiatives, Monica Johns (President and CEO of Clarity Management Consulting) can help you select an innovative supplier partner. To learn how she can help you reduce operating costs and revolutionize the way you do business, visit www.claritymanagementconsulting.com.



Functions obtained through iPod innovation

January 6, 2010 by admin  
Filed under Uncategorized

Technology advancement has brought about plenty of surprising uses to mankind. An example of this can be seen through the iPod innovation. This little beauty’s initial function was to play music and videos were later on added to its features. However, standing here today, its applications have crossed boundaries. Read on to discover some interesting uses which its boasts.

Recent research shows that fresh doctors can be trained to be more attuned to heart beat patterns which indicate severe heart problems. This is achieved by letting the interns listen repeatedly to recordings of normal and abnormal heart beat characteristics through iPods or MP3 players. By this, these interns will be able to detect irregular heartbeats effectively.

Also, the iPod innovation has pushed exercising regimes to a whole new level. Joggers are able to spice up their dull regular procedures as mini music players and iPods can offer the necessary entertainment. A special application, namely TrailRunner enables runners to plan out their training routes. Maps, distances as well as time frames can be displayed as well which this invention.

Going on, having a personal tour around renowned cities have never been easier with this technology. With the correct application downloaded, subway maps from cities such as Paris, Tokyo, Hong Kong, New York and many more can be displayed on this innovation. A convenient fit which will help you from getting lost.

Also, MP3 players or iPods are popular choices as learning tools in universities. They are widely used for taking notes and recording lectures. These gadgets are even useful when it comes to learning foreign languages. It is also common amongst students majoring in the music field to study music with the help of these devices.

As a whole, iPod innovation is truly a blessing to the younger generation as so many things are becoming more convenient as time flows.



By: Alina Michael

About the Author:

At the end, I’d like to share cool website with more information on topics like Who invented the iPod and Who invented the MP3 Player . Visit for more details.



Media Innovation Has Touched People’s Lives

December 5, 2009 by admin  
Filed under Two Ways

Like a big leap from the past, media innovation has done some astonishing things in the lives of people especially in the way we connect to one another, endow relationship, and add more and more members into our circle of friends. The ordinary ways have been considered obsolete in order to brick the way for the modern and highly sophisticated means that most of the time require an on line connection.

Take for example social networking. Social networking is no longer compassed within certain locations and no longer subjected to so many limitations. It is because today through the Internet, you can create social connections to many people as you like, divide a lot of things with them, and enjoy some on line activities together such as games, trivia quizzes, and others.

As a modern approach to media innovation, the number of social networking sites have increased perceptively on the Internet and they differ so largely when it comes to style, interface, add-ons, and other features. But aside from the differences you also can notice that they share common similarities like allowing subscribers to create on line photo albums and upload music and music-videos that members of your network can download.

Some of the most accessed social networks on the Internet include Facebook, Friendster, and Multiply. These places on the world wide web are the havens of millions of people from all walks of life, with varying age brackets, and coming from diverse cultures. These sites also house people and individuals with no walls or barriers caused by racial or religious discriminations and prejudices. The economic status of the subscribers is also out of the question because here rich and poor people meet together and they both enjoy a free life-time membership.

Another area of relationship that has been greatly affected by the so-called media innovation is dating. From the plain and simple connections at social networks to a more serious and exciting stage of relationship, on line dating sites have given dating a whole new look. Unlike the social network sites on the Internet that offer services to subscribers for free, there are on line dating sites that require members to pay annual fees if they want to unlock some of the features or services that they would like to avail.

At on line dating sites, members can have more chances of meeting their soul mates and create a more serious relationship because these sites provide ways by which one can connect to people who share the same interests, spiritual convictions, and other issues of concern as his. These sites like those of the social networks also open up ways for members to exchange email-like messages that can be long and detailed, and instant messages that are short, conversational, and interactive. Aside from exchanging messages, members especially those who are dating on line can also express affections with gifts. Of course, they are just virtual gifts but they could mean a lot to the recipients.

Either through social networking or on line dating, one cannot deny the fact the latest media innovation has touched our lives.



By: Che Cruz

About the Author:

We are obsessive about creating brands that evoke powerful emotional connections with customers, at defining differentiated and compelling market positions for Brand Strategy,Brand Agency,Brand Design,Graphic Design Melbourne,Corporate image



Assess Your Company’s Potential to Innovate With a New Business Model

December 3, 2009 by admin  
Filed under Business

Business concepts are all well and fine, but what do these business model innovation concepts potentially do for you? I want to share some questions designed to help you apply what you have been reading to your existing business.

What is your current business model?

If you offer many products and services, you may have more than one. Understanding how you operate now will make it easier to think about how you can improve upon the present.

In thinking about this question, you will find it helpful to focus first on what benefits customers get from what you provide. Also, consider what benefits the customers’ customers get through to the end user of the product or service. In thinking about benefits, remember that customers always want more and at a lower price. How does your business model accomplish that for them?

As an example, let’s consider the Folger’s coffee business at Procter & Gamble. That business is an industry leader in providing coffee-based products to allow consumers to have a tasty, comforting beverage at home that may or may not stimulate them with caffeine. The products are sold primarily through supermarkets, discounters, and warehouse clubs.

Compare that with the Starbucks coffee business. Starbucks primarily provides high-quality coffee and tea products through a service in complex prepared forms in coffee bars to also provide an enjoyable experience. The company further offers roasted coffee beans as a product for tasty experiences at other coffee bars and eat-away-from home locales as well as for consumers to brew at home, so that customers can always have the good-tasting products they prefer.

The companies have two different business models that provide different products, differing amounts of experience, in different ways, and mostly in different locations. Notice that Folger’s could have innovated with the Starbucks business model before Starbucks even existed as a company. The model already existed in Europe, which is what helped stimulate the Starbucks model.

Had Folger’s taken this path, there would probably be only one business model now in the industry. Interestingly, the two businesses have started to compete directly with each other’s business models by offering prepackaged coffee-based beverages that are manufactured and distributed by others into normal beverage outlets.

What were the last five business models before the current one?

Understanding how you got to where you are today often provides valuable insights into what new business models would be most attractive in the future. The forces that made those innovations work may still be around today, or may have only been slightly changed.

Has your company had a process aimed at developing improved business models?

New business processes almost always emerge from a deliberate process of innovation. If your company has yet to establish such a process, chances are higher that you have a substantial backlog of opportunities for desirable new business models.

If you have such a process, does it look at business model innovation separately from product and technological innovation?

Many companies see new products and technologies as the only potential ways to provide increased benefits to customers and end users. As the coffee discussion suggested, it can be easier to add more value by turning a product into a service than it is to focus only on improving the product itself.

For example, General Food’s Maxwell House division had introduced flavored coffees conceptually like what you get in a coffee bar in the early 1970s. Few would argue that the taste and experience of these canned items are a match for what is offered at a Starbucks or a coffee bar using Starbucks products. Without a separate focus on designing and implementing new and better business models (that may include new products and technologies), you are probably missing most of your opportunities.

When was the last time your company changed its business model?

If the answer is more than two years ago, the odds favor there being a current opportunity to implement an improved business model.

How many times has the business model changed in your industry in the last ten years?

If the answer is less than three times, there is probably untapped potential for a new business model now.

How expensive is it for you to develop and test a new business model?

The answer differs a lot from industry to industry. If the costs are low, then you have very high potential to develop an improved business model. You will face few internal hurdles to doing the necessary early experimentation. Conversely, if the costs are high, you will probably need to create an improved way to develop business models that is less expensive.

How risky is it for you to develop a test a new business model?

For some companies, reputation is so important, for example, that it is difficult to even test new things until they are almost perfect. In other industries, working with crude prototypes is the expectation.

What do you lose if your business model experiment fails in all of the predictable ways that it could? If not very much, what are you waiting for?

If much is at stake, consider ways to reduce the amount at risk or the visibility of your flops. Early experiments should be expected to create “learning” rather than solutions, so you need to have a way to get your learning on the cheap.

Copyright 2008 Donald W. Mitchell, All Rights Reserved



By: Donald Mitchell

About the Author:

Donald Mitchell is chairman of Mitchell and Company, a strategy and financial consulting firm in Weston, MA. He is coauthor of seven books including Adventures of an Optimist, The Irresistible Growth Enterprise, and The Ultimate Competitive Advantage. You can find free tips for accomplishing 20 times more by registering at:
www.2000percentsolution.com



Innovative Ideas for Church Fundraisers

November 11, 2009 by admin  
Filed under Non Profit Organizations

Most churches rely solely on donations given by their members during mass for financial support. The money that the church collects is used to cover its general expenses and regular upkeep. More often than not, the amount is simply not enough to maintain its existence and operation, such that other sources of funds are sometimes necessary. This is where church fundraisers come into the picture.

Church fundraisers are an excellent way to help the church raise the money that it needs to keep up with the growing costs of running such an institution. It is also a great way to encourage its members to become more involved in its activities and more supportive of its goals. However, in order to get people’s attention, the fundraising concept must be something innovative and exciting, and appeals to the human senses. Below are some themes and ideas that can help you get started with your church fundraising campaign.

A church choir concert would be a great way to raise funds for your church. The church can earn from ticket sales, as well as from sponsorships. Not only will they be able to earn extra income for this, but they will also help promote the local talents of the church and the community. The audience, on the other hand, will be able to socialize with other church members and will have a night of fun and entertainment.

Raffle off an item or a service. Get one of your church members to donate a valuable item or service and hold a raffle draw for it. An example of an item would be a statue of the Blessed Virgin Mary and an example of a service would be ballroom dancing lessons. The church will earn from the sales of the raffle tickets bought by those who wish to be part of the contest.

A church auction is another unique way to help raise extra funds for your church. Like the church raffle concept, simply ask church members to donate or contribute items and services to the church. Instead of raffling these items off, organize an auction night and sell the donated items and services to the highest bidder. The proceeds of the auction will be collected by the church and will be used for necessary expenditures.

Lastly, write letters to church members who have businesses within the community. Ask them to rebate a small amount or percentage every time someone buys something from their store. For example, ask a church member who owns a candy shop if it is possible to contribute $1 for every $20 purchase that is made in his store. Let the patrons of the store know that a part of the money that they spend there would be donated to the church. Not only will the business be promoted to the local community, but at the same time, people will be encouraged to buy from it because they know that part of the money that they spend will be put to good use.



By: Clark Swihart

About the Author:



Innovations in Home Security

May 13, 2009 by admin  
Filed under Innovative Ideas

Everybody wants their homes to be more safe. If you would like to increase the level of your home security, you will have a lot of different innovations to help you in achieving your goal. There are many new and improved systems developed in the recent time that provide a better protection of your house and personal property. Especially there were many innovations in the field of communication that directly impact the products and services created for the home security industry. For example, most of the video cameras and audio equipment provide wireless capabilities nowadays. This means that you will no longer have to install a special wiring to connect your cameras to the receiving equipment. This will make the cameras, especially the hidden ones, a lot harder to find. The new system consists of three components: a video camera itself, a wireless transmitter (transmits the video stream signal to the receiving equipment, sometimes installed as a part of the camera) and a wireless receiver (receives the transmitted signal from the video camera and forwards the video stream directly into the receiving equipment).

Wireless cameras provide the possibility to transmit video information without cables. They are also easier to install and maintain but require some time to be spent on the configuration. There are other systems that use the advantages of the innovations in the communication industry. For example, wireless audio transmission can be implemented in addition to video transmission. Also, if you signed up for the alarm monitoring service, there are companies that allow the monitoring equipment to dial through the dedicated cellular link in a case of an emergency. This protects you from a situation when you are left unprotected during the time your regular phone lines are not working.

Scientific innovations contributed to the development of various home security systems and equipment. There are systems that will allow access only if a person provides the correct fingerprint or the eye signature. There are voice identification systems that will check if the voice of the person asking for access is indeed the voice of the authorized person. There are alarm systems that will detect the change in temperature or other scientific characteristic and will trigger an alarm if a change is detected. All of these systems are usually very expensive and are used if you are trying to protect something very valuable and expensive. Sometimes these protection measures are used to protect the information on home computers, assuming the information that is stored on the computer is extremely valuable. With time, however, the prices are expected to drop and many of the systems that are currently used only for the protection of expensive items or information will be used for the more common home security purposes. By then new and more advanced systems will be developed.

There are many home security innovation based on the general scientific discoveries and technological advancements. For example, the automated systems allow for a great deal of preprogrammed automation of most of your security equipment. With the automation system you can interconnect all of your security systems in one “all in one” system. In this case, for example, a triggered fire alarm can use the alarm security monitoring service to notify the fire department of the possible fire in progress. The motion detector outside of your house can trigger the video surveillance system and start the recording process when there is any movement detected. The motion detector will trigger the alarm in a case of a burglary if the door lock fails or a window is broken. A backup power supply is used to keep the security system running when the power shuts off for one reason or another. You can even connect all of your equipment to your personal computer and program the interaction of different security system components.

If you want to get more information about home security products, please visit: www.security2020.com

By: Ava

About the Author:

Ava is a part-time writer, researcher and web developer for home security matters. Visit www.security2020.com to learn more about this subject (Home Security).