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Tactics for Commercial Logistics/ Supply Chain Business Development

Tactics for Commercial Logistics/ Supply Chain Business Development. Dale Cottongim. Presentation Agenda . Part 1: Logistics and the Supply Chain? What are they? Where does NPAs fit in? Part 2: Logistics Business Development (BD ) Recap of Panel Discussion Tools/Exercises. Before.

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Tactics for Commercial Logistics/ Supply Chain Business Development

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  1. Tactics for Commercial Logistics/ Supply Chain Business Development Dale Cottongim

  2. Presentation Agenda • Part 1: Logistics and the Supply Chain? • What are they? • Where does NPAs fit in? • Part 2: Logistics Business Development (BD) • Recap of Panel Discussion • Tools/Exercises

  3. Before • Proper Prior Preparation (PPP) • Know Your Business • Know Your Customer • Know Your Value-Added Proposition • Commercial business is primarily about profit.

  4. Part 1: What is the Supply Chain? Supply Chain is the flow of materials, information, and finances as they move in a process from the origin point to the end consumer. Logistics involves all of the planning, execution & control required to successfully deliver the product to the end consumer. The goal is to optimize this flow to achieve low cost and high customer service.

  5. Supply Chain Services • Distribution • Contract Closeout • 3PL – 3rd Party Logistics • Warehousing • Parts Machining • Packaging • Call Centers/ Help Desks • Packaging Reclamation • Admin Staff • Document Scanning • Manufacturing • BSCs • Mail Room Operations Management • Document Archiving

  6. Supply Chain and Logistics Transportation Supplier Manufacturing Dealer / Retail Consumer Manufacturing Distribution Reverse Sale/After-Sale Inbound CustomerInterface Contracts Finance Marketing HR IT IT Infrastructure & Information

  7. NIB in the Supply Chain Transportation Supplier Manufacturing Dealer / Retail Consumer Manufacturing Distribution Reverse Sale/After-Sale Inbound CustomerInterface Contracts Finance Marketing HR IT IT Infrastructure & Information The collective view of all NPAs

  8. Value Proposition Considerations • Cost Competitive Work Force. • Quality high – in product or service. • Returns low. • Employee Turnover – Low. • Hidden Benefit to Customer – Learn job with continued improvement at no additional cost. • Can be both the manufacturer and fulfillment agent for some products (3PL). • Leverage Government base of work. • Unlikely to go out of business.

  9. Value Proposition Consideration • U.S.A. Workforce. • Community Goodwill/Contributor.

  10. What The Commercial Customer Wants • Quality – NPA strength. • Cost – An area to explore. • Reliable Delivery – NPA strength. • Speed of Response – A potential NPA weakness. • Proactive vice Reactive – Varies by person and agency • Professional Interaction

  11. The Proposal Pieces • Opportunity Identification • Customer Profile • NPA Relevant Performance • NPA Value Added • NPA Pricing

  12. BD Tools - Exercise • Goal: Opportunity Identification • Identify how and where the data is collected to respond to a customer. • Time: 5 minutes.

  13. BD Tools - Discussion • Commercial Opportunity Identification • No FedBizOpps– but still applicable. • Networking • Conferences/Tradeshows • Current Events • Oklahoma Economic Indicators – August 2013 • Disappearing Jobs in the USA – USA Today August 30, 2013 • Data Services (Scarborough, Gartner) • Consultants

  14. BD Tools - Exercise • Goal: Customer Profile • Identify how and where the data is collected to respond to profile a customer. • Time: 5 minutes.

  15. BD Tools - Discussion • Customer Profile • Internet • Internal Website • LinkedIn – Company Site and Employees • General: • Company Leadership and Current News • Business Approaches • Business Partners (or Not) • Employee Salary Data • Internet Chatter Approach to Problem Resolution“We understand that sometimes even with the best communication, problems will arise. We will work with our Customers to resolve their concerns to both our satisfactions. To accomplish this, we draw upon the experience and expertise of our personnel by providing problem resolution tools for our Customers. These tool include aiding communication improvement, gap analyses, six sigma tools, root cause analysis, process mapping, decision making techniques, situation appraisals and coaching/counseling of employees.” Sayres and Associates Quality Assurance Website

  16. BD Tools - Exercise • Goal: Relevant Performance & Value-Add • Identify NPA relevant performance and value-add to a an opportunity. • Time: 5 minutes.

  17. BD Tools - Discussion • NPA Relevant Performance • Contracts – current and completed • Be careful of outdated material • Marketing Materials • Old-Timers • Proposals • Employee appraisals • NPA Value Add • Tie past performance, capabilities, and approach together to create the value-added. Best answer is an up-to-date dataset.

  18. BD Tools - Exercise • Goal: Pricing • Identify how and where the data is collected to price an opportunity. • Time: 5 minutes.

  19. BD Tools - Discussion • NPA Pricing • Finance • Contracts • Process Review – what are the process steps driving costs? Can they be modified? • Indirect Costs – Can I adjust my pricing based on risk? Up or down? • Commercial – Quality, Price, Delivery

  20. BD Tactics Summary • Speed up your process. • Organization: • Create a cell within the NPA to focus on commercial. • Streamline approval process. Set time limits, primary and alternate approvers. • Process • Review pricing factors without a proposal pushing your review. • Determine if an opportunity is strategic or short-term – may impact your pricing. • Create pricing templates. • Create past performance templates

  21. BD Tactics Summary • Speed up your process. • Process • Collect past performance centrally. Catalog them for future use. • For core services and products, have pricing already developed that can be modified as needed to fit requirements. • Organize your people. By process, by commercial and government…. • Focus on a core set of functions for opportunities vice chasing anything and everything.

  22. BD Tactics Summary • Speed up your process. • Process • “A well developed, detailed proposal database is an exceptional tool which significantly increases volume and quality while reducing the cost of submitting a proposal. We have witnessed the savings – in time and cost – of a well-developed proposal library. The results are dramatic – a reduction of up to 30% in time and labor preparing a proposal.” Strategic Creations

  23. Before • Proper Prior Preparation (PPP) • Know Your Business • Know Your Customer • Know Your Value-Added Proposition • Commercial business is primarily about profit

  24. Contacts Dale Cottongim Consultant, Supply Chain 540-295-1994 Dale.cottongim@gmail.com

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