Partner Management & Strategic Procurement (Part 3 of 3)

Business Management Health Assessment (BMHA)

“Designed for the Manufacturing Industry”

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PARTNER MANAGEMENT & STRATEGIC PROCUREMENT

​QUESTION => Manufacturers – Are you achieving 500% + on Overall Equipment Efficiency (OEE)?  Are you achieving the planned ROI?

This week, we will focus on INTEGRATION, PARTNERSHIP & PROCUREMENT/PURCHASING and their influence on many aspects of your manufacturing environment driving business goals and growth.

These domains of Partner Management and Strategic Procurement are a significant portion of running a manufacturing business.  In reference to Part 1 of this blog series, typically 80% of the product a manufacturer produces may very well be outsourced.  If the integration, and in some respects, they are an extension of your organization, they need to be tactically managed as such.  Failure there means your company’s failure to the market.  We in manufacturing, and for the most parts – all industries, are experiencing flow issues from the beginning of the C-19 pandemic in 2020 onward.

As mentioned in last week’s blog [Partner Management & Strategic Procurement (Part 2 of 3) – LYNX Business Management Group (lynxbmg.com)], partnership or close long term agreement associations may be necessary for survival and access to market share.  The integration of your organization and the supply-chain is ever so critical.

Ask yourself, does our 5-year (or longer) business plan consider alliances to achieve the goals, objectives and growth you are responsible for?

Should a strategic sourcing plan be the answer, then that’s where the ‘integration’ management comes into play.  We have experienced for decades buyers that are thinking about the bottom line cost with product quality as the only goal.  These folks are not the leaders to sustain the business.  It is important for manufacturing industry leaders to make strategic decisions that may not only be focused on cost.  Reliability, the cultural business behaviour of the supplier, quality, being there for your team day in and day out is more important than the cheapest price.  Most of us at LYNXBMG come from the Aerospace, Automotive and Energy sector.  If cost was the only focus, vehicles would be falling out the sky sort of speak.  I think you see our point.

The integration and relationship to produce the most advanced product to meet the purpose keeping cost in mind is a collaborative process.

Of course, leadership must be ever so conscious of take-overs or market poaching with integrated partnerships.  That is part of the game and what leadership is accountable for.  It may be that there is no other viable way to be included into the market share.  Deal with the “devil you know” and manage it well.

Let’s have an inventory of what all this affects:

  • Market Share
  • Market Strategy
  • Impact to Business and Operations
  • Working Relationships
  • Operations
  • Management of Change
  • Business Systems Integration
  • Buying Leverage and,
  • Product offering

A lot to think about and to plan for as leaders.  We can go on, however, blog articles are intended to be brief.  So, should you wish to chat more, we encourage you to reach out to us on this topic.  We are practitioners with a true passion to help manufacturers like you meet your objectives.  It costs nothing to enquire, and we wager that you will be glad that you did.

Next months’ article will be focused on ‘OPERATIONS PLANNING & MANAGEMENT’.  Stay tuned.

 

The BMHA is an efficient LYNXBMG auditing and business development process assessing eight operating key business management principles & institutional processes.

Extended support by LYNXBMG enables manufacturers like you to execute continual improvement through mentoring of personnel and optimization of your operating processes.

Flexible Product Options:

OPTION A Client self-performed assessment – Internally managed.  Formalized Report-Out. OPTION B Assisted assessment – Leave the process to us – 3 Day on-site process with a LYNXBMG Business Development Expert to manage and document a deep dive of your operational business.  Formalized Report-Out and Roadmap to develop the business.

With a completed BMHA, we guarantee leadership will have clarity on:

  • The level of congruence within the functions planning, managing, and controlling the company.
  • The level of congruence and integration of the management processes used to drive the company.
  • The alignment of the business plan to the company’s core objectives.
  • Strengths, weaknesses, opportunities, and threats within the company.
  • Opportunities for cost reduction and performance improvements affecting overall equipment efficiency (OEE).
  • Procurement and purchasing leverage opportunities.
  • Operations and Quality Assurance alignment.
  • Organization readiness & prioritization of what to focus on to develop the business.
  • Progressive steps to achieving a lean enterprise.
  • Expected ROI from development actions taken ~ 500+% based on OEE improvement to manufacturing quality, efficiency, resource allocation & management processes.

Our Mission is to help manufacturing organizations achieve operational excellence, profitability, and growth in a competitive market through the mentoring of personnel and optimization of processes.

Our Core Values are:

  • Integrity & honesty
  • Demonstrate and build trust
  • Genuine care for Client growth and wellbeing
  • Coaching and devotion for excellence
  • Making a difference for industry

For more information or to order your own BMHA from LYNXBMG.

We look forward to hearing from you.