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“It’s not us, it’s them” – how to blame your supply chain.

We flew Ryan Air recently and it was “interesting”, but what really stood out was at every stage the supply chain was held up to blame as the villain who was responsible for every small problem.

Our experience was actually not too bad; two flights, two delays, a grand total of about 3 hours delays over both legs which could be best described as irritating. There were no hoards of passengers beating down the pilots door or flooding the customer desk with compensation requests yet a scape goat was presented to accompany every update once delays set in.

  1. The flight is delayed because the incoming flight is late
  2. The take-off is delayed because airport provided ground staff are not available
  3. The take-off is further delayed because a third party hasn’t got the paperwork to air control on time
  4. The take-off is further delayed because air-control are being slow
  5. We’ve landed but this airports ground crew didn’t sort out a landing gate
  6. We’ve got a gate but Swiss Air staff haven’t arrived to open the doors yet

Talking amongst the passengers (we had a fair bit of time on our hands) the reaction to this was universal;

We don’t know how an airline works, we don’t care how an airline works, we paid ONE company so we expect that company to look after us.

The Supply Chain Shield

Blaming your own companies failings is way more common that people right realise; “it’s the other planes fault”, “our sales department let you down” etc. But over the years we have seen that whilst the blame might be readily allocated, the responsibility on behalf of the wider company is more often than not taken on board so in the eyes of the customer someone is owning the problem.

Not so when it comes to supply chain; there are still many interactions where the supply chain is held up like a defensive shield against all manner of complaints, the implication being that “We are good; THEY are not and are letting YOU down. NOT US”

Customers Perception

Has any customer ever, on hearing that it was a supplier not the main company they bought the service from, felt any different about the service they have received? We would say that at best no, and at worst it makes the situation even worse.

Ryan Air have chosen to outsource a large part of their operational service to reduce costs and increase efficiencies. Good for them. But don’t start blaming these companies when they don’t deliver. MANAGE the supply chain internally, don’t insult the customer by thinking we will forgive bad service or focus our frustrations on another company. We won’t; we paid YOU, not your suppliers, it’s your job to make them perform.

After all, should the experience on landing be world class thanks to the supplier, we wonder how many subsequent announcements are made saying “actually, its not us, that’s our supplier”?

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Remember to tell your supply chain that you are engaged with them.

Read any paper or article on supply chain management and one key factor returns time after time :

How engaged you are with your supply chain?

Let’s look at Best Practise

This is our summary of best practise in the industry: The idea is a very simple one; in order to get the best out of your supplier to move as close to the bottom right on this matrix; green and green!

Supplier Engagement Best Practise diagram
Supplier engagement matrix. Get to the bottom right!

We have not read an academic study that disagrees with the concept and research bodies such as Gallup Supplier Engagement concludes that there are real benefits to be had where engagement is proactively driven, including;

  • Higher quality
  • Improved forecasting and planning
  • Improved product development
  • Greater supplier support
  • Lower costs – both transactional and price per piece overall

We are all agreed then – we follow best practise!

Seeing as we have this unanimously agreed, clearly every supply chain function follows these engagement guidelines!

Well, not quite.

Here are 3 factors that stand in our way:

1.Resource

It takes considerable effort and time to proactively drive engagement and dependant on the size of the supply chain function it will certainly never be practical to adopt this for all suppliers. The hard bit is to identify which one(s) are “worth” the effort – either through volume of orders, strategic importance, or quite frankly how well you get on with the supplier. So engagement happens in pockets with isolated suppliers.

2.Too few gains

As with all theoretical models, real life will always throw in a few curve-balls that break the consensus. In the past we have worked with suppliers who deliver a great product at a great price which completely fitted our business. Processes were automated, human intervention rare and issues numbers were through the floor. Simply put, it just didn’t seem we could do much more to drive performance and certainly the effort we would put in was never going to materialise in corresponding benefits.

3.Convinced they are already doing it

Someone from a supply chain function might look at the top left tangent and immediately think along the lines of “we may not be world class but at least we are better than that”. We’ve worked with supply chain managers and consultants from different sectors who on the question of engagement are all convinced that whilst there is always room for improvement, they ARE engaged with their supply chain.

But we do measure engagement!

The biggest challenge we would have to this is to understand how this engagement is measured; nine times out of ten it is by the criteria of the buyer, NOT the supplier. In other words it’s a one dimensional assessment which does nothing to further any engagement or relationship.

…and we do communicate!

Supply teams have argued that there is frequent exchanging of information, Management Information and service levels met, but these feel more of a contractual requirement and any meeting to discuss these WILL progress the relationship but by increments not leaps and bounds.

An easy first step to enlightenment

Tell your suppliers you want to engage better with them.

You might be trying, but they won’t notice unless you talk to them.

Discuss, together, how you might do this to best effect for both parties.

In an ideal world – bake it in from the start:

We’ve seen first hand companies and their strategic supplier launch joint ventures in a new territory with a board member from either side join the others board. This ensures that strategy, ambition and delivery was jointly conceived and the benefits (and profits) gained were shared equally.

Aspirational? Certainly. Always achievable? Certainly not.

But getting as close to this ideal as suits your company in terms of outlook, structure and resource is well worth the effort.

Don’t necessarily ask yourself what the cost benefits will be for this effort, rather what the price of not engaging might be.

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Supplier Management; A change of perspective

Supplier Management is a tricky business; you often have a complex array of commodities or services being provided by an selection of different companies.

And just to make life just that little bit more difficult, it’s rare that each supplier acts in isolation. More often than not a part of what one supplier delivers (or not!) will directly impact a part of what another supplier delivers and the knock-on goes down the chain.

In a service delivery environment these impacts or difficulties can be exaggerated because any process in place won’t follow a nice linear manufacturer line but has the variable of a customer and choice to accommodate.

What works well – managing by commodity

What we have seen in a diverse service related supply chain is that Subject Matter Experts (SMEs) control the suppliers and therefore the commodity in isolation. There is a lot of sense behind this as the SME understands;

  • The market place
  • The commodity
  • What good looks like

The end result is often that each supplier or commodity is generally well managed and the three key pillars of measurement (cost, time and quality) are where they need to be or within an acceptable tolerance. The “horizontal” management which is most common place certainly has merit.

What about the vertical?
What about the vertical?

What does not work quite so well – the wider view

However, the business in which the supply chain fits is rarely run on commodity lines; there is a wider strategy, vision and set of goals which the supply chain will contribute towards.

Let’s take a theoretical example. The board of your company has received consistent feedback that whilst their offering is considered to be at a good price point, customer complaints are escalating and the service rating has never been lower. Strategic change has been required therefore to improve quality across all areas and it is accepted that this might have a small cost increase. Because the business has been slow to effect change in the past, there is now a big pressure push from the top to see action.

As Head of Supplier Management you gather your team to explain the revised focus.

  • You review the complete supply chain metrics looking specifically at the service performance
  • Each supplier has been consistently outside target, but only by a relatively small margin
  • In isolation and viewed in a silo of single supplier activity this service drift was noted but not deemed worthy of a bigger set of actions
  • As a combination though, the service failure looms a lot larger

Next actions look something like this

  • Each SME is now tasked on service over cost
  • Each will pull a set of meetings to relay this to each supplier they deal with
  • Each will tell you why something can be done but maybe not as you outlined because of “unique conditions to my commodity”
  • Some will increase prices and ask for a service improvement with very marginal improvements

And so on, and so on.

How to include a wider and future focussed perspective

So in addition to managing by commodity it is as important to view the complete supply chain output through the same measures and lens as that of the wider business.

Also it’s worth thinking more about HOW the supply chain is measured.

Performance targets and Management Information (MI) are vital barometers of how the supply chain is or was fairing; with as long as a month’s delay in receiving MI it is often a snapshot of the past. By reviewing the supply chain output as a future focussed risk assessment proactive measures or at least plans of actions can be formed at a far earlier stage.

Any templates that could do this for me?

Are there any templates that can do this for me?

This Supplier Dashboard and Log does a great job – it is tried and tested!

Supplier Risk and Performance Dashboard Template (POCCET)
Supplier Risk and Performance Dashboard Template (POCCET)
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PESTLE Analysis

PESTLE Cheat Sheet for Keynote on Mac

What? Do you mean Pestle and Mortar?

No we don’t. PESTLE stands for Political, Economic, Social, Technological, Legal and Environmental. It’s a well established way of  a business or enterprise to track the wider environment in which they are operating in.

Is it still relevant?

Yes. Well mostly – there has been some debate about that. The problem is that if you undertake the analysis work once you tend to not review it for awhile so it feels static despite the world changing fast. Other methods have been suggested; STEEPLE being one (Social, Technological, Economic, Environmental, Political, Legal and Ethical)

I get confused between what falls into what category.

Us too!

The main challenge is keeping your PESTLE Analysis current!

As long as you cover all factors in your project, AND KEEP IT CURRENT then you are doing very well. Some points can be argued into different areas of the PESTLE, and if this is the kind of discussion going on over your PESTLE document, then you have covered all the important points.

Some examples might help.

Of course. Here we go:

Example PESTLE Analysis items

Political – If an election is due and there is public pressure to reduce spending in an area where traditionally there are government subsidies this is a factor!

Economic – Oil prices hit a low; if your business has heavy transportation costs this will start to help.

Social – The rise of E-cigarettes is seen as a healthier and more socially acceptable alternative to traditional cigarettes

Technological – Back to E-cigarettes – the technology behind them (essentially a delivery system) allowed the industry to explode.

Legal – Unless the above were to be made illegal

Environmental – European short-fall of snow affecting ski resorts the most obvious example

Anything else we should know about PESTLE?

Yes.

PESTLE Analysis documents and guides for further use can be found here

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Can your business survive? Top Ten Tips: Ensure your Business Survives Natural Disasters

In the USA disasters force up to 40% of small businesses to cease trading. Can your business survive?… Get the top ten essential preparedness tips here.

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Each year it feels like the UK braces for it’s worst storm in years. In the US hurricanes have repeatedly savaged coastlines and wrecked communities. and the profound consequences of superstorms continue to affect the people and businesses left in their wake.

According to FEMA (U.S. Federal Emergency Management Agency) disasters force up to 40% of small businesses to cease trading, permanently. Smaller companies comprised of 50 employees or less, face a great impact, compared to larger companies with multiple trading sites. Those areas facing existing tough economic trading conditions fare the worst, where the trading conditions were challenging to begin with.

Many businesses take an incredibly long time to reopened. Then there are the additional pressures from increased insurance costs, the decline in tourist numbers and damage to local infrastructure. Many business owners, faced with the additional costs of essentially restarting their business from scratch,  simply give up.

The SRA (U.S. Small Business Administration) calculate that of the estimated   60,000 to 100,000 small businesses that were negatively impacted by hurricanes 30 percent failed as a direct result of the storm.

With the inherent risk from such events, how can you protect your business? The answer in one word is preparedness. The more prepared you are, the more likely your business is to survive. The Business Docs top ten essential preparedness tips will help you prepare for the unexpected:

  1.  Check your insurance cover.  This is a bit of a no-brainer but how many of us actually read insurance documents? Thoroughly check that you have all the cover you need, that the policies are in force and there are no hidden policy conditions, which might cause problems if you need to make a claim. Arrange a meeting with your broker to ensure your insurance meets your needs as a business.
  2.  Think beyond natural disaster. We often imagine a disaster to be a hurricane or earthquake. However, a comprehensive threat assessment should include other potential threats, including drought, burglary, power outages, terrorism, cyber attack, or any other events which pose a substantial threat to your business.
  3. Have a comprehensive BCP (Business Continuity Plan). A comprehensive BCP is essential in ensuring that your business can be reinstated as soon as possible following an event. Working out what to do before an event occurs, ensures that you maintain control of your business.
  4. Make sure employees know what to and stay safe. As a business owner, if a disaster occurs your first priority is to ensure the safety of your customers and employees. If employees know what to do and how to handle the situation, they can take effective control and ensure the safety of all involved.
  5. Carry a copy of your business continuity plan with you. A disaster can happen at any time, ensure that you have access to your plan at all times by keeping it with you.
  6. Keep the contact details for your employees up to date. Staying in contact with your employees in a business continuity event is crucial. Ensure that you have the current contact details for all your employees. Check with all your employees once a month to ensure their details is current.
  7. Have an alternate site or recovery work area for your business. Many businesses are reliant upon a single site that their business operates from. If that site is destroyed or rendered inoperative, consider how your business would survive. Alternate sites or recovery work areas can be rented for your business to move into immediately if your usual site cannot be used.
  8. Have a strategy. Having a plan is additional work and expense that you might never need. However, if the worst were to happen, you would be thankful you planned ahead.
  9. Stay in contact and have your business equipment available. If a disaster were to occur, the last thing you need to have happen is not to have essential business equipment with you. Keep your company cell phone, laptop, tablets, tool kits, medical kits and anything else that you might need with you. Ensure employees do the same, so you can stay in communication with them and they have the essential equipment at hand.
  10. Inform your customers. In all of this, don’t forget your customers. Informing your customers that you have comprehensive continuity plans, displays due diligence and commitment towards them. If a business continuity event occurs, contact your customers and keep them reassured.

We can help you!

  1. Disaster Recovery Plan Template
  2. Business Continuity Plan
  3. RAID Log
  4. Project Dashboard
  5. Roll-out Plan
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Need help with Copyright Infringement of Template Design or Digital File Download?

Need help with Copyright Infringement of your Template Design?

Have you had your Intellectual Property stolen?

We would like to help you with your Copyright Protection!

Here at Business Documents UK Ltd we have had some experience with copyright infringement. We have had to contact a selection of online businesses that have been offering our template formats (recreated or directly copied) for free or for onward sale.

In all cases so far, the templates have been provided to them by freelancers, and in all cases so far the company in question has acknowledged the infringement, and has withdrawn the offending items, after varying lengths of correspondence and discussion. None so far have required legal action. So far.

Template Email to company infringing your copyrighted product:

The below template is a fairly informal note that you can use to make an amicable first contact. Please feel free to use this, and then follow the next steps underneath.

Dear Sirs,
It has come to our attention that there is evidence of an infringement of our copyrighted intellectual property on your website.
We are assuming you have been provided this by a 3rd party, and would like to help you resolve this ASAP.
For reference, the {item} you have on {URL} is a copy of our copyrighted material at {URL}.
Also, for the avoidance of doubt you can see our copyright notice here {insert link}.
We are happy to help you address any questions or doubts raised if you were provided this by a 3rd party to discuss this infringement – it’s clearly something you need to avoid recurring, and can cause a slur on your good brand.
Please let us know as quickly as possible how you would like to proceed.
You will appreciate that we take this very seriously, as this intellectual property is an important part of our business.
Kind Regards,
{Person}
{Title}
{Company Footer}

Send that email as you can, and the response should help you decide how to proceed.

Next Steps

  1. Best Case – Immediate Cooperation : If they respond well – stay in touch and build a relationship – you are in the same business area, and could benefit from this. We are living evidence that this has happened.
  2. Likely Case – More Evidence Required : If they claim to have originated the format (i.e. that there is no infringement) or just think you are chancing it, or even deluded, they are likely to contest your claims. Respond calmly, and provide whatever evidence you can find; professional signed evidence from a respected colleague; dated archive from The Web Archive (I love that website!); dated emails and dated file information – whatever you can provide!! NB stay calm. Always.
  3. Getting Worse – No Response : If you hear nothing back, do not be disheartened. DO NOT RESORT TO AGGRESSIVE LANGUAGE – It never helps. Resend your email, and send a hard copy to their business address, on your logo’d paper. Follow them on twitter, facebook, G+, and send them professional and kind messages via these social networks.
  4. Worse Still – No Cooperation : At this stage I would advise issuing the DMCA copyright notice from Scribd, and send a hard copy to the business too.
  5. Worst Case – you need some help combating the offender : Be careful here, you could get into a quarrel or legal battle – a big energy and resource drain. If you are absolutely sure of your case, and believe the offender is being deliberately, then you could approach e.g. Google here to report and request removal from their search indexing. If you are in the USA, there is a list of copyright infringement agents who can help here.

NB – ALWAYS STAY CALM. We have surprisingly developed some business relationships with a couple of the organisations who were unwittingly infringing our copyright.

The UK Copyright Service has some great materials and information to help you with Copyright.

If you are in the same business as Business Documents UK (downloadable document template files) you are more than welcome to use our Copyright Notice if you like – just drop us an email or link back to us for reference.