Situation:
An international nonprofit struggles moving to a decentralized purchasing process with inconsistent supplier analysis, acquisition and evaluation systems. Organizational leadership is eager to explore solutions that lower costs and boost productivity.
Challenges:
Transform antiquated procedures and processes. Overcome resistance to change in decentralized departments.
Action Analysis:
- Customize and lead 7 Value Stream Workshops with all departments to move from a current state to a desired state
- Develop methodology for evaluation of supply base
- Create supplier measurement system and include quality, delivery and price analysis
- Conduct onsite audit to evaluate suppliers in the areas of engineering, finance, purchasing, quality, and manufacturing; Audit includes the level of ISO and NADCAP approvals
Solutions:
- Develop SOP (Standard Operating Procedures) process and DOC (Document Control Systems) for the organization, as well as for 13 main purchasing processes (i.e. RFQ, requisition creation, purchase order creation, new vendor creation, vendor measurement, etc.)
- Customize strategic supplier deployment tools including VSM (Value Stream Mapping), Six Sigma Process Control, and 5S workshops
- Conduct buyer training programs to foster a win-win scenario in negotiation practices, including building awareness about the cultural nuances of globalization
Outcome:
Stakeholders move from resistant to anticipatory as they gain a deep understanding about the benefits of process change and its impact on the organization.
The global nonprofit enters an exciting cycle of growth as new processes result in increased productivity and profitability.
Additional case studies provided upon request