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06/06/2011 06:47 PM
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I am doing some work in the Supply Chain function within a Company which is quite new and still maturing. The current organisation works more like a group of Supply silo's instead of a Supply Chain, with SAP as the primary interface between silos.
The company is an upstream oil and gas producer so materials procured are all in support of production, mostly for maintenance and facilities. Six operating units with very similar needs are located remotely. The centralised Procurement function is organised around commodities, the Logistics function is focused around transportation mode.
I am looking for examples of organisation models which address the problems of silo functions that fail to view materials supply from an end to end perspective, or Value Stream.
My thoughts currently are around setting up collaborative work environments and co-location of disciplines.
Any examples were this has been successfully implemented or other advice on how to approach this problem will be gratefully recieved.
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06/10/2011 08:45 AM
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The commodity vs. customer conflict within a procurement organization is a common one. It is most effective to BUY with commodity experts, but they lose touch with the internal customers. It is more responsive to service the organization with a customer focus, but that fragments the buying process.
One idea I have seen is a hybrid approach.
The procurement organization organized around their internal customers, so any customer had "their" buyer.
But internally they also had commodity experts who coordinated the purchasing on the back end.
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09/02/2011 10:37 AM
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Your organisation should be focused on satisfying the internal customers. So you'll have to set an organisational structure with a Buyer per Spends categoris or Material/service type. I would advice you to implement a Goal Alignment practices, it will help you to wipe out the silo mentality.
Cheers
Rodrigue
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