Storerooms and Listening to Customers (VOC)
One of the first supply chain projects that we did at a large chemical company in Alabama which involved frequently used MRO parts by the maintenance folks. First we did an As Is process map! Highly paid maintenance personnel ($30 per hour) were driving in pickup trucks, in pairs, to go to a central storeroom […]
Reducing Workload via Kaizen Tools
When I took over as head of a Procurement Division there were three Plants with over $500,000,000 in purchases per year. I was to transform Purchasing into Supply Management with some Lean Six Sigma tools. Plant senior management decided to downsize my department at the plant where I was located at from eight to four, […]
Procurement Revolution
Autonomous Vehicles & the Digital Supply Chain Why Common Sense Purchasing via Relationship Building is the Key to Supply Chain Success By Dr. Tom DePaoli Having a strong purchasing foundation grounded in a common sense is the key to supply chain excellence. Purchasing is the art of building relationships. It is not about negotiations, transactions, industry […]
Procurement Needs to Lead Process Improvement Transformation
By Dr. Tom DePaoli Often companies make the grievous mistake of not letting procurement select or source the consultant or consulting group to lead process improvement. Lean Six Sigma and Lean are too important to leave in the hands of other departments not familiar with the comprehensive evaluation of a bid or a proposal. In […]
Measuring Purchasing Effectiveness
Success in reducing cycle time can be readily measured both quantifiably and qualitatively. As a result, purchasing professionals must ensure that initial cycle-time benchmarking is carefully done before any measurements of success or outcomes are put into place. The CAPS study, Purchasing’s Contributions to Time-Based Strategies (Thomas E. Hendrick, Ph.D., 1994) lists 10 outcome areas […]
Kaizens Work for Marketing Plans!
I once was involved with a major transformation of a worldwide logistics organization. At the start of the transformation, they had twenty-six divisions. They had decided to reorganize and needed some basis for the reorganization. I suggested that we first do a marketing plan, which was greeted by disbelief and catcalls. I explained my strategy […]
HR Website Design
In a major corporate Human Resources department we were asked to design an employee human resources self-service website for all employees. There were multiple tasks that employees required human resources assistance for from benefits, updating next of kin, pension plans etc. We were determined to look at each of these processes and determine if they […]
Five-Year Strategic Plan Guide for Purchasing and Supply Management
By Dr. Tom DePaoli Over 95% of purchasing or supply management organizations do not have a long-term strategic plan. This is not surprising given the dynamic and hectic pace of purchasing organizations. Many of the plans that are completed are done once, and put in a three ring binder or a hard drive to never […]
Can Appreciative Inquiry Work For Purchasing?
By Dr. Tom DePaoli Most procurement professionals have never heard of appreciative inquiry. It is a systematic discovery process to search for what is best or positive in an organization or its strengths. These strengths are then improved upon to create an even stronger and more dynamic organization. Implementing change remains positive and thus springs […]
A New Way to Look at Paying Procurement
By Dr. Tom DePaoli Most supply chain professionals are familiar with the best practices of a supply chain organization and how to transform purchasing into a lead strategic partner in a company. These usually include a thorough spend analysis to focus on the major areas of materials and services. Another aspect includes the rationalization of […]