Redesigning a Key Business Process to Deliver Financial Results
The supply chain management function of a large, complex organization was facing challenges centered on its ability to meet newly created cost savings targets. While the challenge of delivering cost savings on $800M of transactions was primarily the responsibility of the operating units, our client’s goals had been established to:
- Provide increased service levels to assist the operating units
- Reduce its own workforce costs
Wellesley Partners was engaged to help the supply chain function create its one year improvement plan. A handful of key initiatives were the result. The highest priority initiative was to “fix” the function’s process for master file maintenance, which was fragmented across 4 departments, and secondarily to improve teamwork within the function.
The history and culture of the department remained stagnant from the previous fifteen years focusing on transactional excellence, not innovation nor cost management leadership. The new goals and vision for the organization posed a problem both strategically and culturally.
The Wellesley Partners process revolved around sound change management practices and classic business process re-engineering. Our integrated approach ensures that there is a clearly defined plan that includes stakeholder engagement throughout the process while addressing barriers to reaching strategic goals.
Working with the senior team as Sponsors, and a senior member of the supply chain management team as Project Team Leader, Wellesley Partners assessed the current state and created an approach to address the process issues while increasing management’s ability to collaborate in day-to-day operations. The plan included a cross-functional approach facilitated by Wellesley Partners OD and process consultants.
The major deliverables of the project included the following:
- Process Re-engineering
- Recommended areas for policy review and clarification
- Implementation requirements
- Senior team review and approval
Summary & Conclusion
The project provided the supply chain management team with a new near term capability requiring less effort, thereby freeing up resources to attend to the organizational initiatives of its business partners and to deliver against the parent organization’s goals. Additionally, the increased ability to work collaboratively in teams provided them the opportunity to work more effectively on future initiatives. At the end of this project the following had been accomplished:
- A re-engineered process that improved
- Efficiency, documentation, accuracy, timeliness, integration, opportunities for cross-training, definitions of roles & responsibilities, management controls and checks and balances
- An increased level of teamwork and mutual respect across functional departments
- An increased high level understanding of the issues and complexities involved in executing the end-to-end process