Procurement Key Issues for 2014 from the Hackett Group, Part I

In song, to the music of Where the Rubber Meets the Road by Meatloaf.

Somewhere some buyer’s crazy
And some Rep’s half out of her head
Now the CPO’s fearless
And hopes they won’t wind up dead
Somewhere two fists are pounding
And they don’t care what’s correct
Somewhere somebody’s walking the wire
Without a safety net …

Son, I’m Mr P.C.
And believe you me
I’m the ultimate king of correct
And if you wanna make it
You gotta make them take it
As a sign of your deep respect
If you’re gonna do it
You gotta see through it
To the honour-bound duty it is
You can call Branding absurd
And flip Agencies the bird
Just remember what your mission is …

When the rubber meets the road
Welcome to Procurement mode
Used to be deals were a firm handshake
Now the rubber meets the road

Ya say “Girl, you’re a beauty
But I’m no beast
I got a little contract right here
See, we can slam on the brakes
Anytime we got the stick
Even if we’re in fourth gear”
Rep in the front seat
Lawyer in the back seat
Gettin’ it on the dotted line
Got a snake in the bed
Lord, hissin’ on the headboard
Trying to lure you offside

Where the rubber meets the road
Welcome to Procurement mode
Used to be deals were a firm handshake
Now the rubber meets the road
Where the rubber meets the road
Buyer meets Rep then watch it explode
Yes means no means yes means no
Where the rubber meets the road!

Somewhere some buyer’s crazy
And some Rep’s half out of her head
Now the CPO’s fearless
With hopes they won’t wind up dead
Somewhere two fists are pounding
And they don’t care what’s correct
Somewhere somebody’s walking the wire
Without a safety net …

The Board Gamers Guide to Supply Management Part XVI: The Rivals for Catan

You’re enthralled with (The Settlers of) Catan. Whether you are settling the uncharted islands of Catan or the uncharted planets in Star Trek Catan, you love acquiring your resources, negotiating the best trades, building your outposts and upgrading them into cities (in space), and sneaking your way to victory with a timely acquisition of the longest supply route or the largest force (with the occasional surprise victory point from a well-timed development). You really wish you could square off against the new guy one-on-one who thinks he is better than you, but (Star Trek) Catan is a 3 to 4 player game.

Fear not! Today Sourcing Innovation brings you the answer in its continuing guide to board games for (aspiring) supply management professionals. The answer is the two player variant called The Rivals for Catan, which was released on the 15th anniversary of the Catan Card Game, which was released shortly after the original release of The Settlers of Catan. (Which, low and behold, also comes in an iOS Version. It’s a good implementation and you will find that the tutorial in this game is also well done. However, while the doctor certainly prefers the iOS version of Le Havre for a one-on-one game, due to the significant amount of set up and tear down the board game requires, The Rivals for Catan is one game where the doctor definitely prefers the board game version if the circumstances permit.)

In Rivals of Catan, just as in The Settlers of Catan, you are trying to build your way to victory, which is achieved when you get to seven victory points in the base game or twelve victory points in an extended game (to be discussed at a later time). You receive one victory point for each village, two for each city (which is upgraded from a village), and one victory point each for the strength or trade advantage.

You build using the five standard resources of wood, brick, grain, wool, and ore, just as in regular Catan, but, if you get any, you can also take advantage of a sixth resource — gold — that can be traded for other resources you require. Resources are produced by a die roll at the start of each player’s turn, and the resource(s) that are produced are those produced by resource cards owned by the player which bare the number rolled, provided a player has enough room to store the resource. In Rivals for Catan, a resource card can only store 3 resources.

Each player starts the game with two villages, one road connecting them, and one production card for each resource. Each time he or she builds an additional village, she gets two more resource cards (if slots are available to hold them). In addition, if the player has a scout, he or she can choose what those resources are (instead of getting random resources). (A Scout is an expansion card.) However, she can only build a village if she has already built a road with an open end.

The big difference between Rivals For Catan and the Settlers for Catan, besides the fact that it is designed for 2 players, is that development cards are replaced with expansion cards (which can add buildings, ships, and heroes to your province) and success is highly dependent on strategic utilization of these cards. In the base game there are 36 expansion cards divided into 4 stacks. At the start of the game, each player takes 3 cards from the top of 1 card stack. These cards form the player’s hand and she can play them at any time on her turn if she has the resources and space to do so.

The expansion cards come in three forms: buildings (14), units (6 trade ships and 6 heroes), and 9 actions. The buildings generally increase resource production (such as the marketplace which gives you an extra resource if a production roll gives your opponent more resources than you), protect you resources (as the storehouse protects resources on neighbouring regions when the brigand is rolled), or enable progress (as each progress point given to you by a building allows you to hold one more card in your hand). Ships improve your trading ability with the bank (as the brick and grain ships, for example, will let you trade two to one instead of the base rate of three to one), and heroes contribute towards a strength or trade advantage (providing 1, 2 or 4 strength points and 1, 2, or 3 commerce points). The first player to reach 3 strength or commerce points has the strength or trade advantage until the other player exceeds the strength or commerce point total achieved by the first player to achieve the advantage. The actions allow you to trade 3 gold for 2 resources, trade (up to two) other resources one for one, choose the result of a production roll (like a Munchkin Loaded Die), relocate any two production regions or expansion cards, or Scout for resources of your choice.

Furthermore, to add more chaos to the mix, each production roll is accompanied by an event, determined by the event die. The event can be a plentiful harvest (which grants each player a resource of her choice), a celebration (which allows the player with the most skill points to receive 1 resource of her choice), a trade day (which allows the player with the trade advantage to receive 1 resource of her choice from her opponent), a brigand attack (which causes each player to lose all of her gold and wool if she has more than 7 resources), or a random event (drawn from the event stack). The random event could be a fraternal feud (which sees the player without the strength advantage losing two cards from her hand), a travelling merchant coming to town (that allows each player to trade gold for resources one-to-one, a year of plenty (which sees each player getting an extra resource for each storehouse and abbey in their province), a trade ships race (where the player with the most trade ships gets an extra resource), a feud (where the player without the strength advantage loses a building), or a new invention (that sees each player get a resource of his choice for each progress point he’s acquired). A lucky roll could see your province suddenly become resource rich and an unlucky roll will not only result in your province becoming resource poor compared to your opponent, but could also result in the destruction of a much needed building.

Remembering that we are Supply Chain Professionals doing business in the global marketplace, the first of us to secure and deliver all of the products and services we need to meet all of the customer demands wins the game. We secure the products and services we need by managing supply and reserving limited production and distribution capacity. We find out which resources are limited by watching the market and taking note of tumultuous events. In today’s marketplace, no supplier will be able to meet all of our component or service needs on their own, so we will not only have to barter and trade with multiple suppliers, but also with our competitors and their suppliers in tight markets. And there will be nasty surprises waiting for us. A natural disaster may wipe out part of the raw material supply or Somali pirates may seize a precious shipment. We hate the pirates. They are dicks. But if our shipments get robbed, it’s not the end of the world. There are other ways to serve our customers. We can use the insurance money to buy from someone else, we can redesign our products to use alternate materials, or we can focus on a new or different substitute product or service to get us, and our customers, through the worst of times.

And as The Rival for Catan, we are constantly trying to secure the resources we need to acquire our workers (heroes), construct our buildings, procure our ships, grow our company (to new villages and cities), and obtain strength and trade advantages over our competition. We have to do this in the midst of disaster (pirate attacks, what dicks!, civil uprisings, and legal injunctions [that take your resources from you]). And we have to take advantage of good fortune when the opportunity arises (and the market prices drop and we can trade [significantly] cheaper than normal).

The Rivals for Catan a great two-player game to sharpen your strategic supply management skills. Try it out. (And for extra practice, and training, try the iOS Version).

How BizSlate is Bringing Sexy Back to ERP! Part II

As per our last post, ERP used to be sexy, but hasn’t been that way in a while. That needs to change, because ERP should be sexy. Fortunately for us, BizSlate has decided to do something about it. They agree that ERP should be appealing, exciting, glamorous, trendy, and just a little risqué and are doing something about it. In our last post, we discussed what they are doing to make it appealing, exciting, and even glamorous. And if that isn’t enough to whet your whistle and take a look at what a modern ERP should be, today we’re going to discuss some of the things they are doing to make it trendy and even risqué!

Trendy

When it comes to ERP, Icona Pop got it right:


You’re on a different road I’m in the Milky Way
You want me down on Earth, but I am up in space
You’re so damn hard to please, we gotta kill this switch
You’re from the seventies, but I’m a nineties bitch

Fundamentally, ERP hasn’t changed since the nineties, which is two decades behind where it needs to be. When ERP came out in the late 80’s, the World Wide Web didn’t even exist. It was 1992 before the first commercial sales website was put up, and 1995 before the US National Science Foundation lifted its strict prohibition of commercial enterprise on the internet (which, as per our recent history lesson, was almost immediately followed by the release of the first commercial spam — damn you, NSF!). One-click on-line shopping? It wasn’t even a pipe dream! By the time Amazon.com hit the mainstream in the late nineties, the ERP, formally defined by Gartner Group back in 1990, was quite mature and, like an old dog, unable to learn new tricks.

That’s why BizSlate went back to basics and rebuilt its ERP from the ground up. This allowed it to replace old-fashioned OLAP with real-time reporting, offline down-time forecast generation with real-time what-if forecasting, batch-mode accounting/procurement system integration and reporting with real-time integration and query execution, etc. For the first time in over a decade, ERP is trendy again — and it’s not even 2038!*

Risqué

It’s disruptive — in addition to the appealing, exciting, glamorous, and trendy features discussed above, it’s re-built the ERP from the ground up to follow and support the life-cycle of the product through your supply chain. Additional features that have been included to support this are cross-reference SKUS, which allow you to track, and use, all of the different SKUS used by your suppliers and customers seamlessly and interchangeably; a full-featured web-based API that allow a front end interface to be developed for any web-based browser (so a slimmed down interface can be developed for your smartphone, should you so choose, and their product already supports the iPad, allowing your sales people to check product availability and take orders in real-time on the trade show floor with 100% confidence that all promises made can be kept); support for multiple types of e-Document exchange and the ability to define the type of e-Document exchange (EDI, XML, e-mail PDF attachment) that will be used with each customer or vendor for each type of communication; fine-grained roles and responsibilities and appropriate support for company, agent, supplier, vendor, and licensor representatives; multi-order receiving capability (which isn’t even found in mature products like NetSuite), multi-order shipment update; an API for shopping cart integration (in alpha); etc.

All this is in addition to the unique bulk order functionality, tight GL integration, multi-edit capability, pre-pack/re-pack functionality, and document generation discussed in our first two posts on how BizSlate is ERP for the Small to Mid-Size Distributor that was Released to Mid-Sized Distributors and Retailers to the Masses last year.

BizSlate wants to redefine what it means to be ERP. And bring sexy back to ERP.

* ERP hasn’t been trendy since it was promoted as the cure to the year 2000 problem, brought about by mainframe, mini-computer, and windows programmers that decided to save bytes by representing years using two digits instead of four. The next impending disaster isn’t until 2038, when all Unix-like systems that store the system time as a signed 32-bit integer, reach their maximum value. (Unless, of course, you think the Network Time Protocol will fail when it reaches it’s max value in 2036.)

How BizSlate is Bringing Sexy Back to ERP! Part I

As per our last few posts, ERP used to be sexy, but hasn’t been that way in a while. That needs to change, because ERP should be sexy. Fortunately for us, BizSlate has decided to do something about it. They agree that ERP should be appealing, exciting, glamorous, trendy, and just a little risqué and are doing something about it.

Appealing

Built from the ground up to be 100% web-based SaaS, and taking lessons from best-of-breed SaaS e-Supply Management solutions, which themselves took lessons from best-of-breed B2C consumer e-Commerce solutions, the system is friendly, streamlined, easy on the eyes, and useable. Realizing that success stems from use and use stems from desire to use and desire to use stems from knowing it’s easier, and more satisfying, to use the system than to bypass it (which is a common problem among all types of systems in a modern organization), BizSlate put a lot of effort into designing a system that
was not only easy to use, but that a person who needs an ERP would want to use.

Exciting

New catalog season used to mean new headache from hell. As per our recent post on how It’s Time to Bring Sexy Back to ERP!, if your new product line contained 20 pairs of footwear in 7 different sizes and a minimum of 2 colours each, and each needed its own SKU, that was at least 280 products you needed to create one at a time! With all of the coding and cross-coding required, it was probably 15 minutes a product, or 30 products a day, or two weeks of data entry for some poor intern just to create a starting product catalog! But not with BizSlate. With its batch create capability, you define a template, define the characteristics that define the variations, define the different instantiations of those characteristics (e.g. size, 6-13, and colour, black and brown), define the starting SKU, define the ending SKU pattern, and press a button and — BAM! — it generates all 280 draft product entries. If you’re happy, press another button, and — BAM! — 280 products created and added to your ERP. If not, go back, alter the template, characteristics, and variation rules and go again. If there are custom values that need to be defined, you can populate just those fields in a spreadsheet view during the validation step. Retail and distributor customers that used to spend weeks and weeks creating new product entries for new product lines now spend a few days and generate hundreds of entries in just a few hours. It’s an exciting development in ERP usability.

Glamorous

As per our last post, traditional ERP is unsophisticated. This means a number of things. First, as per our last post, if you wanted to define multiple, sophisticated, commission plans for internal and third party sales people based on category, product, volume, and stock-type, you had to buy an ERP from Imaginationland, because that was the only place an ERP exists where such a task is possible. But not with BizSlate — they’ve thought through this need and built a commission definition and management system to support even the most demanding client. But this isn’t the only feature that makes this modern take on an ERP glamorous compared to the dinosaurs it is competing against.

Traditional ERP is quite dumb. Typically it’s not even as smart as the relational database it is built on. For example, let’s say the value list for shoe sizes is the same as the value list for sneaker sizes, think you can abstract that list and re-use it? Not a chance — create it every time you need it, buddy. Building a goods receipt and the value is already in the purchase order and want to re-use it? Copy and paste.

And that’s just the tip of the iceberg. Want to re-use similar types of reporting structures or entry forms, because you use the same data in inventory management, order management, invoice management, etc. and don’t want to re-invent the wheel? Fat chance! Rebuild for the use-case and repopulate as above.

But not with BizSlate, who have built their streamlined ERP around repetitive mechanisms. Value lists, forms, and report components are all implemented as reusable components that can be reused wherever they are needed. Need that size list across your clothing line? No problem. Need that discount percentage by spend across your electronics category? No problem. Want to re-use the same entry form template for entering order details for your suppliers and invoice details for your customers? No problem. Repetitive Mechanisms take the repetition out of your job and allow you to focus on the job and not the data. That makes ERP glamorous.

BizSlate: They’re Bringing Sexy Back … to ERP!

BizSlate, first introduced to you on SI back in September, 2012 in our post about an ERP for the Small to Mid-Size Distributor, and covered again last February when BizSlate Released its ERP for Mid-Sized Distributors and Retailers to the Masses, has decided that it’s time to bring sexy back to ERP.

BizSlate, who, like the doctor, noticed a void in useable and affordable modern ERP solutions for the mid-sized distributor, retailer, and manufacturer, decided that they needed to do something about it and built a new ERP from the ground-up, that is custom-designed to meet the need of the mid-market distributors, retailers, and manufacturers that are under-served, and released it last year. But working closely with their initial customer base, they noticed a few things that typical ERP and implementation providers overlook. Among other things, they noticed that:

  1. Traditional ERP is Ugly
    Black and Green screens are functional, but belong in the server room. There’s no reason that ERP can’t be functional and appealing.
  2. Traditional ERP is Cumbersome and Boring
    Does your new product line contain 20 pairs of footwear in 7 different sizes and a minimum of 2 colours each? And does each need its own SKU? Guess what, that’s at least 280 products you need to create one at a time! With all of the coding and cross-coding required, it’s probably 15 minutes a product, or 30 products a day, or two weeks of data entry for some poor intern just to create a starting product catalog! Talk about cumbersome and boring. High-tech is supposed to relieve your burden and excite you!
  3. Traditional ERP is Unsophisticated and Unglamorous
    Do you use third party agencies to sell your stuff? If you’re a mid-sized distributor or manufacturer or even a mid-sized retailer who focusses on the core business of distribution, production, or store-front retailing, you probably do (since sales, distribution management, and e-Commerce aren’t your forte). And you probably (want to) pay based on commission. But if you’re using an old fashioned ERP, you’re probably stuck with one simple commission plan, or, if you’re really lucky, one per third party agency. What if you need multi-tier? Or different rates based on category or component (since you want to push new product lines but don’t want to pay a lot for end-of-life products where inventory is being sold off at reduced rates)? Better luck next time. But what if you could manage commission plan by agency, by product line, and even by salesperson? And what if it was easy? That’s a level of sophistication that would make your life, and the life of Accounts Payable, easy! An ERP that solved this obvious need would be glamorous.
  4. Traditional ERP Works Off the Nineties Model of a Back Office System.
    The nineties were two decades ago. Traditional ERP hasn’t kept up with the trends and can’t support the modern sourcing, procurement, distribution, inventory, and order management needs of a modern organization that has to respond to customer inquiries and adapt to customer needs on the fly — not on a weekly reporting schedule. Given the critical nature of an ERP solution, it has to keep up with e-Business trends.
  5. Traditional ERP is Non-Disruptive
    The core functionality and process flow of ERP hasn’t changed much in the last twenty years. This is a problem because true innovation that brings true leaps in productivity and generated value comes from technology that is willing to take a risk and disrupt the status quo.

In other words, BizSlate realized that ERP was ugly, boring, unsophisticated, out-dated, and non-disruptive and that it shouldn’t be this way. So they’ve spent the last year streamlining and improving the core of the new ERP that they’ve built to make it appealing, exciting, glamorous, trendy, and just a little risqué. Because that’s what ERP should be. As per our last post, we have to remember:

ERP used to be sexy. It’s time to make it sexy again!