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Business: Markets

BEST PRACTICES XCHANGE SYMPOSIUM TO ADDRESS SUPPLY CHAIN AND SOURCING: METRICS AND MARKETING

The Best Practices Xchange ("BPX") (www.BestPracticesXchange.com) is scheduled to meet on Friday, November 16, 2007 for a one day summit which will be attended by a "Who"s Who" of top Strategic Sourcing, Procurement, and Supply Chain Executives. This upcoming meeting will focus on "Strategic Sourcing/Supply Chain Performance: Metrics and Marketing".

A study conducted by a research firm in 2006 suggests that using the conventional Purchasing Price Variance ("PPV") as a metric has been linked to counter-productivity and less-than-ideal results and that the alignment of more appropriate Key Performance Indicators ("KPIs") to the overall business strategy will provide the best results and greatest benefit. This session of the Best Practices Xchange will explore the legitimacy of this study and discuss the best KPIs to use for today"s value-creating Strategic Sourcing and Supply Chain organizations.

Strategic Sourcing/Supply Chain organizations, having set the metrics and a method to accurately measure them, find that the next step is to make certain that the rest of the company knows why they are essential: Internal Marketing ("IM"). From an IM Best Practices Study conducted at Northwestern University, it was found that "IM can be deployed as a strategic tool to help an organization achieve its business objectives.... by aligning, motivating, and empowering employees - at all functions and levels - to consistently deliver positive customer experiences that are aligned with the firm"s organizational goals".

In this session, BPX members will explore how to effectively market Strategic Sourcing/Supply Chain services and value internally through the benefit of a facilitated round-table discussion, revealing what each organization has adopted for their own performance metrics and internal marketing strategies.

The diversity of the membership of BPX with respect to industry, size, and geography will make for a very exciting discussion of the issues including: "Are metrics geared towards driving the right behavior in your organization?" and "How do you measure the strategic growth of your Supply Chain/Sourcing organization?" Additionally, the group will address internal marketing questions such as: "How are you marketing the value and importance of your Supply Chain/Sourcing organization?" and "How much time do you spend on your internal marketing efforts?"

Jason Busch of Azul Partners and Brian Sommer of Techventive, two of The Mpower Group"s alliance partners, will be co-presenting on the topic with a talk entitled: Left-Brain and Right-Brain Procurement Adoption Techniques: Metrics and Marketing.

In this presentation, they will share their thoughts on two related sets of activities to drive procurement technology and process adoption. The first is leveraging metrics and benchmarks to build a business case and excitement for sets of specific investments. They will discuss some popular benchmarks that they know can work to drum up executive attention. The second area they explore is the marketing and internal selling of initiatives up and down the organization. In this part of the discussion, they will focus on what they have observed in successful internal selling campaigns.

Dalip Raheja, President and co-founder of The Mpower Group will present on the following topic: Metrics and Marketing: Measuring, Demonstrating and Selling the Value of your Sourcing/Supply Chain Organization.

If an organization is looking to become a strategic competency for their corporation, then they need to adopt the right set of metrics that drive the right behavior, both within their organization and with their own internal partners, and project the real value that they add. Incorporating a communication plan that utilizes all the elements of a marketing campaign that continuously communicates the value of your organization needs to be built. Without such an approach, Sourcing/Supply Chain organizations are doomed to never shed the image of a back office operation. Dalip will discuss some unique metrics to consider, an approach to developing and implementing metrics and a methodology to develop your own "marketing" plan.

About BPX:

The Best Practice Xchange ("BPX") is a by-invitation-only, peer-to-peer group with a charter to provide thought leadership, advanced solutions, and networking opportunities to group members. The group meets four times a year and the meetings are facilitated by the globally recognized and award-winning Oak Brook, IL based Sourcing, Procurement, and Supply Chain consultancy - The Mpower Group.
BPX addresses major Global Strategic Sourcing, Procurement, and Supply Chain Management challenges such as:
Building world-class Sourcing and Supply Chain Management Organizations
Supplier Relationship Management (SRM) and Governance
Outcome Based Process Improvement
Integration of 6 Sigma and Strategic Sourcing
Managing IT Outsourcing Arrangements



As is customary with every BPX meeting, one-half of the very nominal membership dues are allocated to support a charity designated by the membership. Some of the past charities that have been supported by this group include: the Ronald McDonald House Charities; a School for destitute children in India; the Bush-Clinton Katrina Fund; various Chicago-area Domestic Violence Prevention Agencies; and the CS Foundation (India). The beneficiary for this quarter will be selected at the meeting.

A short list of the membership and attendees of the 9Th Best Practices Xchange Symposium includes the following companies:

VP Corporate Purchasing, Volvo Construction Equipment
Director, Global Sourcing, Navistar International
SVP & Chief Supply Office, Exelon
Director of National Purchasing, Discover Financial Services
VP Supply Chain & Administrative Services, WE Energies
VP Administrative Services - Purchasing and Distribution, State Farm Insurance
Director of Procurement, Sidley Austin LLP
Senior Director - Global Technology Sourcing, McDonald"s Corporation
CIO & Chief Procurement Officer, FMC Technologies
VP & Chief Procurement Officer, Health Care Services Corporation
AVP Enterprise Procurement Group, CNA Insurance
VP Supply Services, Ameren
Director Supply Chain, Invensys Corp.
VP Purchasing, John Deere


About The Mpower Group:

The Mpower Group ("TMG"), a State of Illinois certified minority supplier with offices in Oak Brook, IL, assists Fortune 500 organizations globally, solving complex issues related to their Supply Chain and Strategic Sourcing operations including outsourcing and off-shoring. TMG emphasizes world-class business practices related to strategy, process, and technology that truly drive superior financial results for our clients.

The mission of The Mpower Group is to Mpower client organizations to become self-reliant as quickly as possible by actively transferring skill and knowledge, while holistically integrating consulting disciplines with change management techniques. We are recognized thought leaders in Strategic Sourcing and authorities on change management, with large, complex organization experience. TMG brings focused, skilled teams to each engagement, which have a strong bias for actionable results.


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