The main objective in the Carson Manor study is to reduce cost on a per-bed basis to be in-line or near the state average. PSD’s role to assist Carson Manor in achieving cost reduction is by recommending a consultant firm that will provide Carson Manor the specific areas for improvement and methods to implement the changes.
In order to provide the recommendation for the consultant firm that is best-fit for this situation, first they will create an accurate request for proposal that details out Carson Manor’s need and an accurate description of the need. Next, PSD will need to respond to suppliers’ questions as necessary. Lastly, PSD will review the received request for proposals received by the suppliers and provide a summary along with their recommendation for selection.
The objective of this study was to identify where Carson Manor could produce the same outcome with more effective financial measures. It also included the reasoning behind wanting to accomplish this task, Carson Manor was running a 470 bed facility at 14% more cost than other facilities in the state.
First of all, Ms. Taylor needed to understand what Carson Manor is going through so she can make a decision with the help of others that this nursing home needs a more effective in management where they can reduce per-bed cost while keeping the good service.
In addition, Ms. Taylor needed to include PSD in the whole process due to the fact that PSD responded to the needs of other departments and divisions for goods and services at minimum cost in the past, which would help consulting firm to compare accordingly and provide a more consistent solution and develops strategies that improve the future operations of the home. In addition, Ms. Taylors needed to include a procurement statement of work, where goals and expectations are stated clear.
She also needed to develop source selection criteria in advance including information such as copy of contracts, time estimates, names and qualification of persons involved. From the three consulting companies, Standardcare comes close to what Carson Manor should be looking for since they were clear in their future anticipated reduction and implications cost. They seemed to have more experience in the similar situation compared to other two consulting companies. I believe that if Ms. Taylor had little bit more time in her hands, she could have carefully looked into issues of choosing right vendors and their expectations
From my experience, we do give important to both capital equipment purchase and raw material purchase in my company. A raw material purchase is crucial and is primary concern for my company from a product standpoint, where quality, quantity, delivery, price, service are affected and these purchases are normally done on day-to-day operations. These purchases are more routine in nature and possess less risk. On the other hand, capital equipment purchase comes into play from an investment standpoint where normal economic value adds of the whole project is considered. These purchases are done for the long term and are usually associated with high risk and high cost.
Unlike traditional supplier/buyer relationships that had a narrow focus, contemporarily such relationships are becoming more strategic thereby yielding adequate reduction of risk and good technological leverage etc. It should be recognized that this relationship is the most powerful process of consumer satisfaction.
To keep up with an effort to develop a seamless organization between suppliers and buyers; many boundaries that are in place must be broken first. How does a common Plan across the supply chain can help in building an integrated and seamless supply chain?
There are many things are important to develop a seamless organization between the upstream suppliers and the downstream buyers, such as building demand-driven processes through collaborative planning forecasting and replenishment (CPFR). CPFR helps bring the demand visibility many levels of the supply chain which is important.
Organizations should share their goals and the suppliers need to reflect the customer needs on their service. O clear expectation and value sharing by the customer engaging the supplier representatives as part of the Chevron family provides access to controlled information about the company and projects to the supplier representatives assigned to a project for limited time.
This engagement of key people from the suppliers helps to enhance the collaborative atmosphere and culture building effort by the company. Bridging document on key performance metrics: Chevron has operational excellence project execution requirements which usually mirrored by the suppliers to exceed customer expectations. These documents help the suppliers to better understand the expectations and also grow with the operating company.
To develop a win-win partnership with a vendor is a admirable goal for every company but to obtain it is very difficult. There are many things need to be considered but most important of all is having a long-term goal. This can be achieved if both parties need to understand their long-term goal first and each others’ roles along with the need to share information between both about planning a process and how to initiate it. In addition, vendor needs to be active in their cooperative approach and be willing to not only share values and information with client but be able to help and gives ideas if theirs clients are stuck at some point.
On the other hand, buyer needs to stand up with an investment approach to only propose but also be able to identify the amount of supply chain value they are willing to share with their vendor. Finally, agreement/s and accountability between client and buyer are need to be establish on a level where both parties benefit from each other positive attitude to work towards each other.