What is the implementation Game Plan?
The Game Plan to implement Lean Procurement™ (LP) requires four steps. Basically, these steps follow the same methods that are in the Lean Manufacturing guidelines.

The overview is:

• Establishing the executive direction and full support
• Find out what shape your process is in (how many steps)
• Recommend a leaner process to management
• Implement the new process with multi-department support

It’s not about continuous improvement: it’s a rethink and redesign of the procurement process for radical improvement and results.

Establishing the executive commitment
Step 1 is the determination by the top management that implementing a streamlined procurement process for the multitude of high velocity, low value supplies will help the company. Top level commitment and continuous support is vital. If your company believes that Lean Manufacturing principles are valid then Lean Procurement™ is a good direction. Procurement is just another process in a company that can have many excess activities. Many have no value.

At no cost Consumers Interstate Corp. will help you take a look at your existing process and show you a recommendation for a more streamlined version one that has been implemented in over 300 companies in New England.

Uncovering your current procurement process?
Step 2 is finding out what shape you are in. How many steps are in your process just to place an order, receive and pay for it? Finding out about your supplier base data is interesting. How many; suppliers do you have, different product do you use, number of invoices, different payment terms, different freight charge terms. What is the average size of your orders?

The awakening is uncovering that you might have over 30 steps in your process for each order; each one creates a receiver and invoice. Plus, add 5 steps for every error; wrong price, wrong product delivered, wrong amount received.

• How many steps are in the process?

• How many people and man hours?

We can help. We do the work for you. We have experience in identifying the steps in a process and will provide you with an illustration of your process using a flowchart of every step. You may be amazed with how many steps are involved every day.

A typical procurement process

Here is a look at a typical procurement process. What are the excess activities? How close is it to yours?

I need something
I requisition it
I turn the responsibility to the buyer
The buyer searches for the supplier
The buyer gets pricing
The buyer quotes other sources
The buyer creates a purchase order
The buyer places the order
The buyer enters the data into the computer
The buyer gives a PO to accounts payable
The receiver gets the delivery
The receiver enters the data into the computer
The receiver puts the product away
The receiver brings the documents to accounts payable
Accounts payable matches the receiver with the PO
Accounts receivable gets the invoice
Accounts payable assigns the GL codes for each item
Accounts receivable matches the invoice with the receiver & PO
Accounts receivable enters the invoice for future payment
Accounts payable enters the GL codes for each item
Accounts receivable creates the check
Accounts receivable mails the check
The purchasing manager organizes usage data for a budget review
Executive management reviews the product usage data
Executive management organizes GL data for review
Executive management reviews GL usage for budgeting

Here are 28 steps for every order; which creates a receiving & invoice for each order.
(Add 5 more steps for a mistakes: wrong price on invoice, wrong product ordered, supplier delivers wrong product, supplier delivers wrong amount)

We do this work for you to uncover and illustrate your process. We’ll flowchart your process, analyze your data and help you implement a streamline version. We do the heavy lifting.

Making the recommendation?
Step 3 is the recommendation, “Enter the lean Zone”. We’ll bring you an organized presentation of what you look like today and show you our recommendation for a streamlined process illustrated with a flowchart. Your team will be part of the solution. Accepting, approving and participating as a team in the direction is vital to a smooth implementation. Support on all levels top down is vital. Most of all we do the heavy work. We have experience and will help you implement with training and will stay with you ensuring an easy transition.

The recommendation:

The Lean Procurement solution provides;

• Place orders faster with eCommerce, www.SuperSupplies.com
• Implement ordering controls and securities to prevent over-ordering
• Minimize human transactions
• Incorporate fewer steps for all participants
• Reduce paperwork
• Consolidate deliveries for fewer receiving activities
• Fix pricing quarterly for accuracy and less buyer activities
• Invoice with a monthly summary to cut paperwork in A/P
• Provide G/L usage reports to match your invoices cutting time from A/P
• Provide financial and departmental usage reports for executive control & accountability, online 24/7.

We will help you put this in place. We have experience by doing this with over 300 companies in New England.

The implementation
Step 4 is the implementation. We’ll put your new Lean Procurement process in place where we; train and give ongoing support to all your employee participants, provide product samples to ensure the best products are used, make sure everyone’s needs are satisfied from the executive, financial, purchasing, accounts payable, and operations departments. We’re sensitive to the culture change and have experience with successful implementations. That is our career.

What is the Implementation Plan?

• Executive announcement & 100% support
• Timeline set
• Responsibilities set
• On going Supplier support
• 90 day reviews

What are the obstacles?
Finally, the implementation obstacles can be both technical and human.

Technical-

Getting the procurement process out of the company’s computer can be a change in your company’s policy. (SAP, Oracle) However, for the multitude of small value, high velocity repetitive items like office supplies, factory, packaging and janitorial items it makes sense to get them out of your computer and use ours. We can provide the usage reports, ordering controls for accountability and a G/L usage report for the items you receive. Let our computer do the work for you. The transactions for these low value items simply take too much effort to reside in your computer. Just keeping up with the changes in the data, prices, units of measure and descriptions of these types of supplies can be overwhelming and leads to errors.

Human –

Humans have strong emotions about change. There is resistance and difficulties getting everyone pointed in one direction. Previous ties to many suppliers can be tough to break. Old habits and the practice of spending the same time procuring office supplies worth less than $500 rather than focusing time on big dollar raw material and inventory issues needs to be eliminated. We are sensitive and have experience implementing a new process. All users and participants in the process have to be satisfied and experience the speed and efficiency of a streamlined procurement process first hand.

All the employees need to be in the same direction for a new process to work best.

Our experience
We’ve done this before for hundreds of companies in New England. The first step is to look at the products you currently use and the process by which you procure them.

We will uncover areas where:

• More innovative products that will save time and money
• Steps in your procurement process that can be eliminated.

Then we introduce and help you implement a Lean Procurement process. We do the work for you.