Wednesday, June 5, 2013

Business Competitive Edge in the adoption of Best Practice Processes


There is more to having a successful business organization than learning the secret handshake, showing up at the meetings and delivering the elevator speech. You need education. You need training and experience. The specifics of the education training and experience depend on which branch of profession or industry sector you associate with.

All business organizations run on the engine components of processes, ethics and skill set of its resources to deliver its goods and services, but its sustainability and future depends on how these components have been refined and adopted.   

The adoption of best practices in an organization business processes provide competitive edge and enlarge the coast of opportunities it attracts. Such best practice methods include the following;

  • ·         Supply Chain Management
  • ·         Human Resource Management
  • ·         Information Management
  • ·         Traffic Management
  • ·         Order Management
  • ·         Contract Management
  • ·         Warehouse Management
  • ·         Health & Safety


Supply Chain Management leads the chart of business process framework on the basis that it encompasses inter-related methods, such as inventory use, warehouse management, procurement and contract management, financial management, logistics, etc.


Benefits of Best Practice Adoption (BPA)
1.       Employees in the business organization deliver optimal performance as their skills are enhanced with effective business processes
2.       The organization will have a competitive edge amongst its competitors, thereby attracting investors
3.       The organization experiences fast growth with effective business continuity
4.       There is high retention of skills and expertise which over time helps in setting a benchmark for the market or industry
5.       Adoption of best practice provides proper visibility and qualitative facts for decision making 

Business tools that helps to drive adoption of Best practice processes and methodologies:
1.       Enterprise Resource Planning (ERP) applications: These are business solution software built on processes and logics enforcing data capturing, processing and delivery of report in a standard controlled approach.
Some of the inter-related modules found in ERP systems are Financial Management, Account Payables, Account Receivables Management, Warehouse Management, Logics/Fleet Management, Procurement and Contract, etc.
2.       Business Process applications: These are software applications that help to develop properly defined processes based on logics, parameters and definitions entered or selected in the application based on an industry sector. With this, business organizations can have a benchmark definition to work with while building their businesses.

Bob Engel (Supply Chain Quarterly, 2011) identified 10 best-in-class ideas (listed below) for businesses running Supply Chain processes & Methodologies;
  • 1.        Establish a governing supply chain council
  • 2.        Properly align and staff the supply chain organization
  • 3.        Make technology work for you
  • 4.        Establish alliances with key suppliers
  • 5.        Engage in collaborative strategic sourcing
  • 6.        Focus on total cost of ownership, not price
  • 7.        Put contracts under the supply chain function
  • 8.        Optimize company-owned inventory
  • 9.        Establish appropriate levels of control and minimize risk
  • 10.     Take green initiatives and social responsibility seriously


If you already have implemented many of these practices, the insights and examples offered here will serve to validate your current strategy. And if you aren't taking all of these steps, then adding the remaining ones to your lineup will help you complete your transformation to a best-in-class supply chain organization.

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