Driving Operational Excellence with eSourcing
Add comment August 21st, 2007 David Bush - Iasta
A while back, Supply and Demand Executive ran an article titled Elements of Success with Operational Excellence Programs that highlighted the results of a study from Archstone Consulting designed to shed light on what more companies should do to achieve operational excellence.
The article, which was a bit lengthy, noted that fully 55% of the companies in the study reported that their operational improvement drove significant benefits but that companies that can regularly and reliably count on meaningful success from their Operational Excellence programs are comparatively rare at only 11%. It concluded with a four step formula for successful continuous improvement programs that can be summarized as follows:
- Link Operational Excellence Efforts to the Overall Business Strategy
- Link Efforts and Goals through Data and Metrics to Achieve Tangible Results
- Develop a Comprehensive Program that can be Executed by People throughout the Company
- Do what’s right for your industry, company, and unique situation
Upon careful reflection, one sees that e-Sourcing can assist your organization with steps two through four if you take the time to integrate it as part of your overall business strategy as a first step. Not only does e-Sourcing achieve tangible results, but it helps you capture the data and metrics you need to link your efforts to your goals. It’s relatively easy, with the right tools, processes, and assistance, to establish a comprehensive program for your e-Sourcing initiative that can be executed by all stake-holders. And it’s pretty hard to argue that e-Sourcing is not
right for your company when it’s flexible, powerful, and capable of significantly increasing your productivity and efficiency even in situations where there are not a lot of (obvious) cost savings. Furthermore, it can always be adapted to your unique situation by using the appropriate tools and processes.
Entry Filed under: Functionality, General, Supply Management Best Practices
