Project Planning Example: Part 4
Step 4: Develop Sourcing Strategy
April 1 – 30, 2001 (cont.)
- Reconfirm the scope of the project
- Based upon the initial responses from carriers, determine desired outcomes
- Compile and quantify the opportunities to each company, and the group overall
- Confirm the strategic targeted carriers and develop the negotiating strategy for each
- Complete the mapping of all administrative processes
- Commence analyzing where technology improvements will assist to streamline the admin. processes. Overlay this with the technological capabilities of the carriers currently in the running, and add new potential carriers as needed to achieve the blend of favourable rates, flexible services and strong technological capabilities
Step 5: Implement Sourcing Strategy
A) May 1 – 31, 2001
- Work through the negotiations with the carriers and short-list the carriers in each of the modes of transport
- Complete the negotiations with many of the carriers, with negotiations well underway with the remaining ones
- Commence designing the routing guides
- The components required from the different field locations identified
- Regional differences identified
- Templates completed and awaiting the finalized data (for 100 to 200 individually customized guides)
- Continue to identify and clarify the administrative improvements that would streamline the processes within each member company
B) June 1 – 30, 2001
- Finalize the negotiations with all carriers
- Get all the agreements with all carriers set up and signed off, with each separate corporation within the group (separate contracts with shared rates and service levels)
- Build and complete the plan to change carriers in those areas where changes have been deemed to be necessary
- Complete the plan for the roll-out of the routing guides, including:
- Identifying who will present the new program to the various field locations for each company within the group
- Training the presenters of the new program
- Development of the support materials necessary (PowerPoint presentation, etc.)
- Logistics and timing
- Finish the routing guides
- All content confirmed
- Build each guide
- Finalize the administrative improvements and prepare a plan for their implementation within each member company
- Quantify and record the various service enhancements within each mode of transport, for each company within the group
- Build the monitoring and compliance components into the system and document these, as necessary
Step 6: Institutionalize Sourcing Strategy
July 1- 31, 2001
- Present the new program to the various field locations for each company within the group
- Distribute and review the routing guides
- Implement the carrier changes
- Confirm that the compliance measures are in place
- Initiate the administrative improvements
- Confirm that the service enhancements are being achieved
- Complete any documentation necessary for the new program to run effectively
- Implement the monitoring and compliance components into the system
- Revisit the scope to confirm satisfactory completion of the overall mandate
- Declare the project complete
Fees
Allfreight will be paid on contingency fee agreement, plus authorized disbursements. The basis for payment is support by the sharing of the actual savings between each member company and Allfreight.
- Agreements will be negotiated with major suppliers for a two-year period
- ABC Enterprise Group will receive 5o% of the actual savings achieved in the first year and 100% of the savings in the second year.
- Allfreight will receive 50% of any savings that is secured on behalf of the ABC Enterprise Group member companies within the first year.
- Allfreight will require two advances from each member company. These advances are deducted from future commissions payable to Allfreight.
- Allfreight will receive an initial advance from each member company of $10,000 (+GST) at the start of the freight project.
- Allfreight will require an additional advance from each member company of $10,000 (+GST) within 60 days from initiating this freight project (estimated at March 31, 2001).
- Approved disbursements will be billed monthly and reimbursable at cost. Taxes are extra were applicable.
We’ve provided this example to further illustrate how a small business can quickly build an effective project plan. The key here is effective – time is in short supply for a small business, so planning must always be grounded in the practical.
Filed under Business Advice, Business Development by Michael Walsh.
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