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Answer Upon - How to Predict a Successful Outsourcing Alliance
Did you know that there are only two types of employees in ANY company? That's right, ONLY TWO!Do you know which category YOU'RE IN?Companies are in business to make money. Therefore, you need to think, "How does hiring me help them to make money?"For all private sector companies, there are two, and only two, kinds of employees:1. Those employees that make a company money.2. Those employees that save a company money (or save time and hence, save money) so they can invest to make more money elsewhere.You should always know which type of employee YOU are.Companies only spend money on solutions to
Finding The Right FranchiseWhether it’s hamburgers, pizza, telecom, coffee, Internet, muffler parts, or seniors’ services, there are Franchise opportunities available to evaluate. There are great Franchise systems, good Franchise systems, and bad Franchise systems. The challenge is to ask the right questions to find the right system that will fit your goals and dreams. The key is to ask the questions – and listen closely to the responses. Only then can you determine if the Franchise opportunity is the right fit for you. So whether it’s food services like burgers or coffee, professional services like telecom or IT, or manual services li
1. Before you outsource, make certain that the department having the need has the backing of upper management. Purchasing, finance, legal department (if you have one), in addition to the department needing the assistance should be involved.
2. Discover exactly why you need to outsource. This will help you determine what you may need to do for future plant improvements and staffing. Example: You are going to outsource because you do not have enough plant capacity to produce the item; or, you do not have adequately trained staff to produce it; or, it may be more cost effective to produce it at a vendor.
3. With the assistance of Human Resources, Finance, Accounting, and the department in need, determine ALL the costs of producing the item in house: Man hours, electrical requirements, water, heating and cooling, labor costs, machine cost/hour etc. Once you know what your costs are, now you can begin to locate qualified vendors.
4. I have always employed a team of people who had a stake in the proposed outsourcing program. In one Company, the team was comprised of the Marketing, Legal, Purchasing and Administrative Services. The outsourcing project was to determine whether it was cost effective to bring in a vendor to supply the firm with in plant copying.
5. Once you have chosen at least three suppliers, based upon quality, capability, testimonials of some of their customers, and viewing some of their operations, you can progress to the SOW (Statement of Work).
6. The SOW MUST contain all of the elements or tasks that will be performed by the outsourced party.
7.. The Request for Proposal will contain such items as: defining the hours of operation, who authorizes the overtime if it is needed, who does the outsourced group report to, which Company has the right to hire or fire, the length of the contract, the anticipated production numbers to be produced, whether the vendor will be permitted to subcontract some of the production work etc.
8. Once the RFP has been prepared, a letter and a RFQ (Request for Quote) should be prepared inviting the selected suppliers to bid on the proposal, Each supplier MUST receive the exact same proposal with no variations. Give the proposed vendors an exact date as to when the RFQ must be returned. Emphasize that the RFQ must be signed off by a Corporate official and not a salesman. No vendor should receive a time extension unless they all receive it.
9. When the RFQs are returned, a spreadsheet can be prepared to compare costs. Where necessary, written verbage can be used to demonstrate added commitments that the particular vendor will include in his costs. For example a vendor may include pick-up and delivery to every organization at no additional charge. This spreadsheet is extremely important because you will want to use it to prepare a Powerpoint Presentation for upper management when presenting your proposed project for final buy off.
10. Once you have selected the winning bidder (it does not always have to be based upon cost) it is extremely important to sit down with the supplier and the department(s) the supplier will be servicing and establish EXPECTATIONS. For an example of expectations I will return to my example involving the Copy Center I (with my comrades) established at a major pharmaceutical firm. We devised the following quality grade card that accompanied EVERY project that left the copy center, no matter how small or large. On this card, the following information was requested: Timeliness, Quality of reproduction, Staff responsiveness, Staff helpfulness, Followed instructions. Each of those items were rated on a scale of 1-10 (10 being best). There was also room for additional comments. The project originator was then asked to send the QC card back to the copy center so that it could be reviewed as t
Ramie is commonly known as China grass from which the ramie fibre is derived. The ramie plant is a hardy perennial, which can be harvested up to 6 times a year. It produces a large number of un-branched stems from underground rhizomes and has a crop life from 6 to 20 years. The fibres need chemical treatment to remove the gums and pectin found in the bark. The process of transforming the ramie fibres into fabric is similar to the process used for manufacturing linen from flax.The true ramie or 'China Grass' is also known as 'white ramie' and is the Chinese cultivated plant. It has large heart shaped, crenate leaves covered on the under
3. With the assistance of Human Resources, Finance, Accounting, and the department in need, determine ALL the costs of producing the item in house: Man hours, electrical requirements, water, heating and cooling, labor costs, machine cost/hour etc. Once you know what your costs are, now you can begin to locate qualified vendors.
4. I have always employed a team of people who had a stake in the proposed outsourcing program. In one Company, the team was comprised of the Marketing, Legal, Purchasing and Administrative Services. The outsourcing project was to determine whether it was cost effective to bring in a vendor to supply the firm with in plant copying.
5. Once you have chosen at least three suppliers, based upon quality, capability, testimonials of some of their customers, and viewing some of their operations, you can progress to the SOW (Statement of Work).
6. The SOW MUST contain all of the elements or tasks that will be performed by the outsourced party.
7.. The Request for Proposal will contain such items as: defining the hours of operation, who authorizes the overtime if it is needed, who does the outsourced group report to, which Company has the right to hire or fire, the length of the contract, the anticipated production numbers to be produced, whether the vendor will be permitted to subcontract some of the production work etc.
8. Once the RFP has been prepared, a letter and a RFQ (Request for Quote) should be prepared inviting the selected suppliers to bid on the proposal, Each supplier MUST receive the exact same proposal with no variations. Give the proposed vendors an exact date as to when the RFQ must be returned. Emphasize that the RFQ must be signed off by a Corporate official and not a salesman. No vendor should receive a time extension unless they all receive it.
9. When the RFQs are returned, a spreadsheet can be prepared to compare costs. Where necessary, written verbage can be used to demonstrate added commitments that the particular vendor will include in his costs. For example a vendor may include pick-up and delivery to every organization at no additional charge. This spreadsheet is extremely important because you will want to use it to prepare a Powerpoint Presentation for upper management when presenting your proposed project for final buy off.
10. Once you have selected the winning bidder (it does not always have to be based upon cost) it is extremely important to sit down with the supplier and the department(s) the supplier will be servicing and establish EXPECTATIONS. For an example of expectations I will return to my example involving the Copy Center I (with my comrades) established at a major pharmaceutical firm. We devised the following quality grade card that accompanied EVERY project that left the copy center, no matter how small or large. On this card, the following information was requested: Timeliness, Quality of reproduction, Staff responsiveness, Staff helpfulness, Followed instructions. Each of those items were rated on a scale of 1-10 (10 being best). There was also room for additional comments. The project originator was then asked to send the QC card back to the copy center so that it could be reviewed as
Newsletters are something that a business should not take for granted. It’s one effective way of maintaining a solid relationship with your customers. Basically, the newsletters are the means used by marketers to boost up their brand. It’s a way of keeping your customers informed about your company.What’s the best thing about newsletters? You have the chance to heighten your brand awareness. You are able to communicate with your prospects in a more intimate level. This is where the trust building comes in. You see the chief aim of a business is to attract the attention of customers, to secure their trust in your products and capabiliti
6. The SOW MUST contain all of the elements or tasks that will be performed by the outsourced party.
7.. The Request for Proposal will contain such items as: defining the hours of operation, who authorizes the overtime if it is needed, who does the outsourced group report to, which Company has the right to hire or fire, the length of the contract, the anticipated production numbers to be produced, whether the vendor will be permitted to subcontract some of the production work etc.
8. Once the RFP has been prepared, a letter and a RFQ (Request for Quote) should be prepared inviting the selected suppliers to bid on the proposal, Each supplier MUST receive the exact same proposal with no variations. Give the proposed vendors an exact date as to when the RFQ must be returned. Emphasize that the RFQ must be signed off by a Corporate official and not a salesman. No vendor should receive a time extension unless they all receive it.
9. When the RFQs are returned, a spreadsheet can be prepared to compare costs. Where necessary, written verbage can be used to demonstrate added commitments that the particular vendor will include in his costs. For example a vendor may include pick-up and delivery to every organization at no additional charge. This spreadsheet is extremely important because you will want to use it to prepare a Powerpoint Presentation for upper management when presenting your proposed project for final buy off.
10. Once you have selected the winning bidder (it does not always have to be based upon cost) it is extremely important to sit down with the supplier and the department(s) the supplier will be servicing and establish EXPECTATIONS. For an example of expectations I will return to my example involving the Copy Center I (with my comrades) established at a major pharmaceutical firm. We devised the following quality grade card that accompanied EVERY project that left the copy center, no matter how small or large. On this card, the following information was requested: Timeliness, Quality of reproduction, Staff responsiveness, Staff helpfulness, Followed instructions. Each of those items were rated on a scale of 1-10 (10 being best). There was also room for additional comments. The project originator was then asked to send the QC card back to the copy center so that it could be reviewed as
For meetings to consistently deliver the required performance and hence outputs, it is critical to have a prepared communication process in advance of the meeting.This enables participants to be aware and where appropriate prepare for the meeting in advance.It also allows for them to circulate any preparatory information and pre-reading before the meeting to minimise any information-giving during valuable meeting time.This time when all participants are together must be devoted to the interchange that can only happen when people are together.The agenda format may vary, but it will need to have some components which
9. When the RFQs are returned, a spreadsheet can be prepared to compare costs. Where necessary, written verbage can be used to demonstrate added commitments that the particular vendor will include in his costs. For example a vendor may include pick-up and delivery to every organization at no additional charge. This spreadsheet is extremely important because you will want to use it to prepare a Powerpoint Presentation for upper management when presenting your proposed project for final buy off.
10. Once you have selected the winning bidder (it does not always have to be based upon cost) it is extremely important to sit down with the supplier and the department(s) the supplier will be servicing and establish EXPECTATIONS. For an example of expectations I will return to my example involving the Copy Center I (with my comrades) established at a major pharmaceutical firm. We devised the following quality grade card that accompanied EVERY project that left the copy center, no matter how small or large. On this card, the following information was requested: Timeliness, Quality of reproduction, Staff responsiveness, Staff helpfulness, Followed instructions. Each of those items were rated on a scale of 1-10 (10 being best). There was also room for additional comments. The project originator was then asked to send the QC card back to the copy center so that it could be reviewed as
Dolly Parton is an extremely well known and very recognizable business women. She has built an international multi dollar business from her great singing voice. What can we learn from the way she does business?Well let's have a look at the Dolly Parton Dinner Show experience and my visit there one Christmas.First of all thought that it was a little expensive, but had been before so I knew what great value it was. When I entered the massive building I was immediately immersed in the Dolly Parton experience and funneled through to get my photo taken. No mention that it would cost me $10 to buy the photo (no sale by the way!).ot always have to be based upon cost) it is extremely important to sit down with the supplier and the department(s) the supplier will be servicing and establish EXPECTATIONS. For an example of expectations I will return to my example involving the Copy Center I (with my comrades) established at a major pharmaceutical firm. We devised the following quality grade card that accompanied EVERY project that left the copy center, no matter how small or large. On this card, the following information was requested: Timeliness, Quality of reproduction, Staff responsiveness, Staff helpfulness, Followed instructions. Each of those items were rated on a scale of 1-10 (10 being best). There was also room for additional comments. The project originator was then asked to send the QC card back to the copy center so that it could be reviewed as to what went right and what went wrong. As an incentive for people to return these QC cards, we would randomly select one card at the end of the month and the party who was selected would receive a FREE lunch in one of the Company cafeterias. You may be thinking about how this system worked out. Very well, if I say so myself. The first year, the vendor was operating at a 97.7 average rating. I will also state that these QC ratings became a very high source of pride to the supplier and its employees. They even asked permission to promote their successes to other possible clients.
This is not meant to be a comprehensive dissertation on outsourcing, but I hope that it will assist anyone who is at the point of having to have the services performed outside or by a service group inside. Also, this outline for outsourcing can be applied to any services needed, such as maintenance, landscaping, printing, custodial work, cafeteria staffing, etc.
Until next time.
Charles "Jitiy" Vaughn
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