06. Outsource Related Process & Controls

Paul Fox: 06. Outsource Related Process & Controls

Paul Fox — Tue, 02 May 2006 20:19:03 +0000

We need to particularly focus on management across organisational boundaries, but need to understand how that relates to internal process and controls

Level 1	Level 2	Level 3	Level 4
Independent	Cascading Processes	Synchronized Processes	Concurrent Processes
No collaboration on processes with trading partners. Most leverage dictates mine or yours Operations forged relationship Limited scope of value add by the provider. Capacity and price are buying criteria. Processes defined by simple discrete PO agreements on a take it or leave it basis. “Take or Pay” attitude toward PO or forecast agreement Use or Loose capacity agreement No logisitic sophistication in agreements, exworks terms.	Processes defined and may be differentiated depending on the commodity or service. Relationships go beyond operations but are not integrated between organisational silos, i.e. finance and operations Collaborative license is given on a barter basis, i.e.,I can reduce your cost if I can agrigate and buy Processes are “cascading” rather than collaborative and concurrent, ie we do our process, then you do your process.	Processes are integrated across silos, but not across partners. Suppliers may have a greater value add or expert role, but contribute later in the lifecycle. Definitive holistic agreements on process for tier 1 trading partners	Collaboration early and often Collaborative process development – design new or pick the best process from either trading partner Collaborative product design process Collaborative forecasting and planning involves sales, marketing, operations amd partners Benefits of collaboration are higher, relationships are longer and swithcing costs are high Multi-tiered inventory planning and optimization with trading partners Understand relationships between various supply chains – view entire program or portfolio of products for each customer (rope of chains)

Mature processes will handle more operational volatility

Paul Fox: 6. Outsource Related Process & Controls

Paul Fox — Sun, 30 Apr 2006 18:22:43 +0000

We need to particularly focus on management across organisational boundaries, but need to understand how that relates to internal process and controls

Level 1	Level 2	Level 3	Level 4
Independent	Cascading Processes	Synchronized Processes	Concurrent Processes
No collaboration on processes with trading partners. Most leverage dictates mine or yours Operations forged relationship Limited scope of value add by the provider. Capacity and price are buying criteria. Processes defined by simple discrete PO agreements on a take it or leave it basis. “Take or Pay” attitude toward PO or forecast agreement Use or Loose capacity agreement No logisitic sophistication in agreements, exworks terms.	Processes defined and may be differentiated depending on the commodity or service. Relationships go beyond operations but are not integrated between organisational silos, i.e. finance and operations Collaborative license is given on a barter basis, i.e.,I can reduce your cost if I can agrigate and buy Processes are “cascading” rather than collaborative and concurrent, ie we do our process, then you do your process.	Processes are integrated across silos, but not across partners. Suppliers may have a greater value add or expert role, but contribute later in the lifecycle. Definitive holistic agreements on process for tier 1 trading partners	Collaboration early and often Collaborative process development – design new or pick the best process from either trading partner Collaborative product design process Collaborative forecasting and planning involves sales, marketing, operations amd partners Benefits of collaboration are higher, relationships are longer and swithcing costs are high Multi-tiered inventory planning and optimization with trading partners Understand relationships between various supply chains – view entire program or portfolio of products for each customer (rope of chains)

Mature processes will handle more operational volatility

Dean Strausl: 6. Outsource Related Process & Controls

Dean Strausl — Sun, 30 Apr 2006 18:20:08 +0000

We need to particularly focus on management across organisational boundaries, but need to understand how that relates to internal process and controls

Level 1	Level 2	Level 3	Level 4
Independent	Cascading Processes	Synchronized Processes	Concurrent Processes
No collaboration on processes with trading partners. Most leverage dictates mine or yours Operations forged relationship Limited scope of value add by the provider. Capacity and price are buying criteria. Processes defined by simple discrete PO agreements on a take it or leave it basis. ~~“Take or Pay” attitude toward~~ Take or Pay PO or forecast agreement Use or Loose capacity agreement No logisitic sophistication in agreements, exworks terms.	Processes defined and may be differentiated depending on the commodity or service. Relationships go beyond operations but are not integrated between organisational silos, i.e. finance and operations Collaborative license is given on a barter basis, i.e.,I can reduce your cost if I can agrigate and buy Processes are “cascading” rather than collaborative and concurrent, ie we do our process, then you do your process.	Processes are integrated across silos, but not across partners. Suppliers may have a greater value add or expert role, but contribute later in the lifecycle. Definitive holistic agreements on process for tier 1 trading partners	Collaboration early and often Collaborative process development – design new or pick the best process from either trading partner Collaborative product design process Collaborative forecasting and planning involves sales, marketing, operations amd partners Benefits of collaboration are higher, relationships are longer and swithcing costs are high Multi-tiered inventory planning and optimization with trading partners Understand relationships between various supply chains – view entire program or portfolio of products for each customer (rope of chains)

Mature processes will handle more operational volatility

Paul Fox: 6. Process & Controls

Paul Fox — Fri, 28 Apr 2006 17:35:14 +0000

We need to particularly focus on management across organisational boundaries, but need to understand how that relates to internal process and controls

Level 1	Level 2	Level 3	Level 4
Independent	Cascading Processes	Synchronized Processes	Concurrent Processes
No ~~collaboration~~ agreements on processes with trading partners. ~~Most leverage dictates mine or yours~~ ~~Operations forged relationship~~Essentially a sub-contract realtionship. Processes are implicit and undefined. Limited scope of value add by the provider. Buyer may be supervising the line. Capacity and price are buying criteria. Effectively a master-slave realtionship. Processes defined by simple discrete PO ~~agreements on~~ agreements. One party may define the process with a ~~take it or leave it basis.~~?factory agreement? in the case of fabs. or standard ?manufacturing service agreement? in case of assembly. Take or Pay PO or forecast agreement Use or Loose capacity agreement No logisitic sophistication in agreements, exworks terms.	Processes defined and may be differentiated depending on the commodity or service. ~~Relationships go beyond operations but~~ However, processes are not be integrated between organisational silos, i.e. finance and operations ~~Collaborative license is given~~ Partner with the most leverage has largest influence on ~~a barter basis, i.e.,I can reduce your cost if I can agrigate and buy~~process Processes are “cascading” rather than collaborative and concurrent, ie we do our process, then you do your process.	Processes are integrated ~~across~~ acros silos, but not across partners. Suppliers may ~~have~~ a greater value add or expert role, but contribute later in the lifecycle. Definitive ~~holistic~~ agreements on process for tier 1 trading partners	~~Collaboration early and often~~ Collaborative process development – design new or pick the best process from either trading partner Collaborative product design process Collaborative forecasting and planning involves sales, marketing, operations amd partners Benefits of collaboration are higher, relationships are longer and swithcing costs are high Multi-tiered inventory planning and optimization with trading partners Understand relationships between various supply chains – view entire program or portfolio of products for each customer (rope of chains)

Mature processes will handle more operational volatility

Paul Fox: 6. Process & Controls

Paul Fox — Fri, 28 Apr 2006 17:22:56 +0000

We need to particularly focus on management across organisational boundaries, but need to understand how that relates to internal process and controls

Level 1	Level 2	Level 3	Level 4
Independent	Cascading Processes	Synchronized Processes	Concurrent Processes
No agreements on processes with trading ~~partners. Essentially a sub-contract realtionship.~~ ~~Processes are implicit and undefined.~~ ~~Limited scope of value add by the provider. Buyer may be supervising the line. Capacity and price are buying criteria.~~ ~~Effectively a master-slave realtionship.~~ ~~Processes defined by simple discrete PO agreements. One party may define the process with a ?factory agreement? in the case of fabs. or standard ?manufacturing service agreement? in case of assembly.~~ ~~Take or Pay PO or forecast agreement~~ ~~Use or Loose capacity agreement~~ ~~No logisitic sophistication in agreements, exworks terms.~~	~~Processes defined and may be differentiated depending on the commodity or service. However, processes are not be integrated between organisational silos, i.e. finance and operations~~ partners	Partner with the most leverage has largest influence on process ~~Processes are “cascading” rather than collaborative and concurrent, ie we do our process, then you do your process.~~	~~Processes are integrated acros silos, but not across partners.~~ ~~Suppliers may a greater value add or expert role, but contribute later in the lifecycle.~~	Definitive agreements on process for tier 1 trading partners	Collaborative forecasting involves sales and marketing	Collaborative process development – design new or pick the best process from either trading partner Collaborative product design ~~process~~ ~~Collaborative forecasting and planning involves sales, marketing, operations amd partners~~ ~~Benefits of collaboration are higher, relationships are longer and swithcing costs are high~~ process

Mature processes will handle more operational volatility

Old Best in Class Notes:
Optimized
Multi-tiered inventory planning and optimization with trading partners

Understand relationships between various supply chains – view entire program or portfolio of products for each customer (rope of chains)

~~Mature processes will handle more operational volatility~~

Paul Fox: 6. Process & Controls

Paul Fox — Fri, 21 Apr 2006 21:52:22 +0000

~~We need to particularly focus on management across organisational boundaries, but need to understand how that relates to internal process and controls~~

Level 1	Level 2	Level 3	Level 4
Independent	Cascading Processes	Synchronized Processes	Concurrent Processes
No agreements on processes with trading partners	Partner with the most leverage has largest influence on process	Definitive agreements on process for tier 1 trading partners Collaborative forecasting involves sales and marketing	Collaborative process development – design new or pick the best process from either trading partner Collaborative product design process

Mature processes will handle more operational volatility

Old Best in Class Notes:
Optimized
Multi-tiered inventory planning and optimization with trading partners
Understand relationships between various supply chains – view entire program or portfolio of products for each customer (rope of chains)