Finding and Implementing the Right Technology Solution for Strategic Sourcing / Supply Chain Professionals

Oak Brook, IL (PRWEB) February 4, 2007

The Best Practices Xchange (http://www.bestpracticesxchange.com) met on Friday, January 26, 2007 at U.S. Cellular Field in Chicago, IL. The one day summit entitled, "The Best Practices Xchange (BPX): Applying Technology to Sourcing / Supply Chain", included a "Who's Who" of the Midwest's top Strategic Sourcing and Supply Chain Executives. The meeting focused on the technologies that can make Sourcing / Supply Chain organizations stars in their firm.

This meeting was a must-attend event for any sourcing/supply chain executive. Attendees came to understand the most important differentiation factors impacting the technologies in the sourcing and spend management space. Attendees also learned of the challenges and implementation considerations one firm encountered as it installed technologies that would reinvent its sourcing practices and its business outcomes. Executives also learned where they stood vis-à-vis competitors during a spirited and interactive discussion re: the deployment of technology in the spend management space.

Following the meeting the Chief Procurement Officer for a member company, said:

"We are considering upgrading the sourcing software at our corporation. We have meetings planned for the upcoming quarter with representatives from most of the major providers. I can't begin to tell you how much this meeting enlightened me to the process. Hearing first hand from an executive who recently went through what we are about to go through is going to give me a huge advantage, both in selling the plan internally, and in negotiations with the vendors. I feel like I have an ace up my sleeve."

Attending members were privy to:

Jason Busch, Founder and Managing Director of Azul Partners and publisher of spendmatters.com (http://www.spendmatters.com) and Brian Sommer, a former Accenture senior partner, two highly regarded experts in the sourcing software marketplace, led an entertaining and informative discussion on that topic. They provided a supplier-by-supplier account of leading sourcing software providers as well as offered a look into what is on the horizon of the application marketplace. They debated the likely impact of new platforms (e.g., Oracle's Fusion), market consolidation and other forces affecting suppliers and users of technology solutions.

Justine Knizeski, Vice President and Chief Procurement Officer for Health Care Service Corporation (HCSC) shared her experience with a recent Ariba technology implementation. She provided members the inside track on how her company made the decision to deploy Ariba, the initial challenges she faced when selling the solution internally, and their implementation strategies and methods. She also shared insights on what pitfalls can occur during a technology implementation and how to drive efficiencies into the process.    

Lastly, Anne Kohler, EVP & COO of The Mpower Group presented and led the discussion surrounding the findings of an exclusive, members only Sourcing / Supply Chain Technology Best Practice Benchmark Diagnostic. The presentations, discussion, and the opportunity to benchmark with other leading sourcing / supply chain organizations is the reason the members take time out of their hectic schedules to meet on a quarterly basis.

The members-only Technology Best Practice Benchmark Diagnostic explored five (5) key areas: Metrics & Reporting, Strategy, Execution, Institutionalization & Collaboration, and Tools. The diagnostic was delivered through a short questionnaire that explored 20 key performance traits covering each of the five domains. A number of key findings from the survey were uncovered;

•     In most cases (91%) a formal program is in place to track ROI (hard and soft dollar benefits) and other value-creation metrics associated with technology investments.
•     It appears that while technology can be utilized to provide real-time spend data, only 18% of the respondents are utilizing this functionality often / always.
•     91% of our respondents have a technology strategy that is integrated into the overall sourcing / supply chain business strategy.
•     Most (91%) rarely or occasionally use technology to quantify and mitigate risk in the supply base.
•     Most (73%) of our respondents are only using on-line auctions for 0 -10% of their sourcing events.

In addition to the wealth of knowledge shared, members were treated to an intimate tour of U.S. Cellular Field, home of the 2005 World Series Champion Chicago White Sox. The tour concluded with an unexpected meeting with team Chairman, Jerry Reinsdorf who was quite intrigued by the BPX and its' charter.

Dalip Raheja, President and CEO of The Mpower Group, had this to say about the meeting:

"Our goal was to create a forum where members would feel encouraged to have open and frank dialogue. Based on the feedback that we are receiving, it is obvious that we are well on our way in accomplishing that. We are quite humbled by the positive comments that we continue to get from the members".

About the Best Practices Xchange

BPX is a members-only, peer-to-peer group with a charter to provide thought leadership, advanced solutions and networking opportunities to group members. The group meets four times a year and the meetings are facilitated by the Oak Brook, IL based Sourcing, Procurement and Supply Chain consultancy - The Mpower Group.

BPX addresses major Global Strategic Sourcing and Supply Chain Management challenges such as:

•     Building world-class Sourcing and Supply Chain Management Organizations
•     Supplier Relationship Management (SRM) and Governance
•     Outcome Based Process Improvement
•     Integration of 6 Sigma and Strategic Sourcing
•     Managing IT Outsourcing Arrangements

BPX recently received national recognition as an organization that provides a collaborative environment for senior executives to meet and discuss the challenges they face in Strategic Sourcing and Supply Chain Management. The September 2006 issue of Purchasing Magazine further illustrates this with their article about founding BPX member McDonald's Corporation's presentation on Supplier Relationship Management at the June 2006 meeting of the Best Practice Xchange.

Justine Knizeski, Vice President and Chief Procurement Officer for Health Care Service Corporation, said:

"BPX provides me with an opportunity to discuss my ideas and plans with a group of my peers. This has saved me endless hours in the continuous improvement of my organization."

Customary with every BPX meeting, one half of membership dues are allocated to support a designated charity. The funds from this meeting are being sent to support a school for destitute children in India.

The next meeting for the Best Practices Xchange Council (BPX) will be scheduled for May 18, 2007 and will address Low Cost Country Sourcing. If you would like more information on The Best Practices Xchange (BPX) or to apply for membership, please contact Dalip Raheja (dalipr@thempowergroup.com) at The Mpower Group, 630-268-8963.

About The Mpower Group:

The Mpower Group ("TMG"), a certified minority supplier, services Fortune 500 organizations globally, solving complex issues related to their supply chain and strategic sourcing operations including outsourcing and off shoring. TMG emphasizes world-class business practices related to strategy, process and technology that truly drive superior financial results for their clients. Dalip Raheja, the firm's President and CEO, is nationally recognized for his thought-leadership and advanced strategic concepts in the areas of Strategic Sourcing and Supply Chain Management.

Contact Information:

Dalip Raheja

President and CEO

The Mpower Group

(630) 268-8963 (Office)

http://www.thempowergroup.com

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