http://blog.kinaxis.com/2007/08/are-costs-and-service-mutually-exclusive/ Fri, 29 Aug 2008 18:06:56 +0000 http://wordpress.org/?v=2.6.1 http://blog.kinaxis.com/2007/08/are-costs-and-service-mutually-exclusive/#comment-32 Randy Littleson Thu, 09 Aug 2007 17:08:04 +0000 http://127.0.0.1:88/2007/08/are-costs-and-service-mutually-exclusive/#comment-32 Hi Paul - good comments. I especially agree with your point about relationships with suppliers. In today's outsourced environments, relationships have to be viewed for the long-term and what objectives you desire. I think too many companies originally entered into relationships with cost being the sole or primary driver. I sense that is changing as companies realize that service and other factors are critical to success and have to be factored into the relationship dynamics and processes. Hi Paul - good comments. I especially agree with your point about relationships with suppliers. In today’s outsourced environments, relationships have to be viewed for the long-term and what objectives you desire. I think too many companies originally entered into relationships with cost being the sole or primary driver. I sense that is changing as companies realize that service and other factors are critical to success and have to be factored into the relationship dynamics and processes.

]]> http://blog.kinaxis.com/2007/08/are-costs-and-service-mutually-exclusive/#comment-31 Paul Gooch Thu, 09 Aug 2007 11:03:22 +0000 http://127.0.0.1:88/2007/08/are-costs-and-service-mutually-exclusive/#comment-31 I understand the power of AND, however there's another three letter word called BUT. If accountability for service and cost is split between functions responsible for logistics and purchasing, then there is always the risk of conflicting functional scorecards undermining the overall objective. Although best-in-class companies have recognised this, there are still many examples of companies that haven't woken up to the new paradigm. Also important is the degree of collaboration with LSP's - an enlightened approach to sharing information and objectives with service partners is key to achieving both service and cost improvements. A confrontational, adversarial relationship with suppliers may achieve short-term cost benefits, but is rarely sustainable, and will often have negative service implications. Regards Paul Gooch, Managing Director, The Logical Group I understand the power of AND, however there’s another three letter word called BUT. If accountability for service and cost is split between functions responsible for logistics and purchasing, then there is always the risk of conflicting functional scorecards undermining the overall objective. Although best-in-class companies have recognised this, there are still many examples of companies that haven’t woken up to the new paradigm. Also important is the degree of collaboration with LSP’s - an enlightened approach to sharing information and objectives with service partners is key to achieving both service and cost improvements. A confrontational, adversarial relationship with suppliers may achieve short-term cost benefits, but is rarely sustainable, and will often have negative service implications. Regards Paul Gooch, Managing Director, The Logical Group

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