Consultancy Management Techniques - Term Paper Example

Consultancy Management Techniques Table of Contents Table of Contents Introduction 3 Part I: Decision-Making Framework 3 Even-Swap Method for Multiple Objective Decisions 3 SMARTER Decision-Making Model 5 Part II: Managing Relationship 6 Sources of Data 6 Supplier Invoice Item Details 6 Purchase Request Item Details 7 Purchase Contract Item Details 7 Purchase Request Fulfilment 7 Part III: Legal &Ethical Compliance 7 Conclusion and Recommendations 8 References 8 Executive Summary Companies that engage in production require suppliers to source them with materials that they can use to generate finished products. Suppliers are, therefore, important in the production process. Their influences are not only felt during production but also in the market as there is a direct relationship between the supplied raw materials and the quality of the products. It is for this reason that companies consider critically the kind of suppliers they contract. Making proper decisions, developing healthy relationships as well as observing legal and ethical codes become vital in order to meet these objectives. This paper seeks to explore and report on the supplier selection decision-making frameworks; how to initiate and maintain a health supplier relationship while considering ethical and legal compliance as far as supplier data and information is concerned with reference to the case of Jaguar and Land Rover. Based on this analysis, it was found out that SMARTER and Even-Swap methods are the most appropriate methods to use. It is recommended that the company should seek to comply with legal and ethical obligation of confidentiality by enabling passwords that protect supplier files and formulating policy that streamline the staff into ensuring appropriate data handling. Introduction In the corporate world, business management team must be able to make various decisions that can positively influence the operations of the company. Managers are tasked with developing various strategies that can help interconnect positively the businesses they lead with their stakeholders. Ranging from employee, customers, suppliers to the general community, stakeholder’s relationship with the firm is very imperative and companies must make strategic and management decisions that can help it reap maximum gains out of this interactions. Supplier selection decisions are among the most significant considerations a business that aims at improving its supply chain can make. The role suppliers play in influencing the cost and quality of production makes it vital to critically evaluate and examine the dynamics of the suppliers a company allows; relationship and communication, cost, ethical implications among other aspects. Just like any other company, Jaguar and Land Rover PLC is one of those firms that have taken seriously the need to develop a clear framework through which it can evaluate and make decisions concerning its suppliers (Jaguarlandrover.com, 2015).. Being a company that heavily rely on high-level technology to make its productions, a fault detected from the supplier’s side may affect grossly its production and eventual performance in the market. This paper reports on the various decision-making frameworks, as well as evaluating the various ways through which the JLR can build its relationship with the suppliers. Part I: Decision-Making Framework Even-Swap Method for Multiple Objective Decisions Among the many approaches JLR can use to make decision concerning their suppliers is the Even-Swap Method. The supplier of parts is ostensibly important and having a framework that can guarantee accuracy and efficiency is therefore necessary. Sometimes it might be hard to make decisions especially when the situation presented is dilemmatic in nature. According to Binder and Clegg (2010: 66), value trade-off becomes an unavoidable option when the objectives are conflicting and options are limited. Classically, some options may be found to favour certain goals while others appropriate for others. It is, therefore, important to accurately analyse and categorise each and every alternative with the objective it can meet. Even-Swap method, according to Mohile (2008: 119), is the most practical tact that can be used to make such decisions as it enables the decision-makers to direct their attention towards value tradeoffs that can produce shrewd choices. In the case of JRL, this method can help the company to sequentially select options, drop those that are inconsequential and pick those that are viable. In a situation where two or more suppliers are seeking to source the company with parts, Even-Swap will make it possible to make value tradeoffs by eliminating those options that are justifiably deemed irrelevant. Even-Swap principally exploits facts available in order to reach at a decision. In a situation where JRL company has two potential suppliers; one based locally and the other located in a different continent, the company may be decide to weigh options and make tradeoffs especially when the supplier from outside has materials that are of high quality. Since the latter supplier, although located say in the Middle East, provides high quality materials, JRL will need to overlook transport costs and inconveniences that are likely to be caused. Swing weights will be utilised to determine what to trade off. For example, there could be a loss incurred when transporting the parts from a far region to JRL factories. However, this can be compensated by producing high quality automobiles that sell at high prices. Currently, the company source most (about 50%) of its components from United Kingdom, something that its directors have sought to change arguing that it would improve its global market competition. The objectives JRL has in obtaining components from abroad include: reducing yearly purchase cost of components, abating the delivery times, average percent defective components and receiving after-sale services. JRL, through this procedure, can analyse its potential suppliers and reject those that are not dominated. Further, the company may go ahead and eliminate practically dominated options. This means that when left with two options, other parameters are examined (cost, % defects among others. These will inform whether to consider one option over the other. For example, if one JRL’s supplier offering pats at higher cost than the other, the company can trade off the defects it has and go for it regardless. Performing Even-Swaps is another procedure that can be used. The supplier and JRL can agree to reduce the cost based on the average percentage defect (Binder and Clegg, 2010: 99). SMARTER Decision-Making Model This is another approach that JRL can use to make its decision concerning suppliers. In this model, the attribute weights of options are linearly ranked in a way that those that have more value can distinctly stand out. The decision maker has a set of information about the options derived from the swing weight examination. The options available are placed into an importance order ranging them from the most important to those that have few attractive attributes. Surrogate weights are then allotted to the criteria (Emmett and Crocker, 2009: 101). In the case of JRL, the decision-maker assigns the importance based on the attributes presented by the suppliers. Just like in the case of Even-Swap, SMARTER, uses swings to determine the ranking given to each option. The number of attributes available in one supplier and their importance based on the swings will rank one either high or low on the board. For example, suppliers from overseas may have a couple of benefits such as quality, efficiency among others. This information is used by the decision-maker to understand which option to go for. Part II: Managing Relationship According to Emmett and Crocker (2009: 110), identifying and engaging suppliers is one task, maintaining a healthy relationship with them is another and companies must focus on laying out frameworks that can help them establish this if objectives of the supply chain are to be met. Jaguar and Land Rover (JLR) has a task of ensuring a close relationship with its suppliers if it aims extracting the best values from its suppliers. At JLR, engaging more than 16 varied suppliers from diverse backgrounds may be extremely challenging (Birminghampost.net, 2015). This is an issue that has negatively affected the company for some time in the past as sharing of data and information was becoming indefensibly restricted. Effective communication is essential to developing a close relationship between JRL and the suppliers. Sources of Data Supplier Invoice Item Details These contain information about the supplier transaction; the supplier invoice including the quantity as well as the cost centre. This information is accessible within the company context. Purchase Request Item Details This data includes the transaction as far as purchase request is concerned. The information includes date, purchase request items among other. This information is accessible within the company context. Purchase Contract Item Details This entails contract details, items to be supplied, supplier details, value and quantity. This information is accessible within the company context. For example, JLR’s binding contract with a supplier contains information about the type of parts to be supplied, value, quantity and terms of engagement. Purchase Request Fulfilment Include the information about data assessing fulfilment and request items. With this, JLR gets informed on purchase order items and level of purchase fulfilment. This information is accessible within the company context. Part III: Legal &Ethical Compliance It is important that information about the supplier is handled in a manner that is in line with the legal and ethical codes. A number of considerations therefore have to be made in order to ensure this is achieved. Confidentiality and privacy is one way through which ethical codes safeguarding supplier information can be observed. It is possible that the information-handling systems be guarded by passwords that are only known by warranted personnel. Also, the filling of information that relate to the company’s supplier should be done in a way that does not compromise confidentiality. Such file and documents should only be safely locked in the relevant offices. Consequently, information on one supplier should not be crossed to other suppliers. These can be achieved through setting information-handling standards amongst employees. Policies can be formulated in this regard to help regulate the activities of the staff so that they may not leak out this information (Binder and Clegg, 2010: 109). Conclusion and Recommendations Supplier management is a critical process that should be approached with utmost seriousness due to the significant influences it has on changing the face of production. Decisions that regard to suppliers should be examined critically before actions are taken. It is essential to lay down well-structured procedures and frameworks through which an informed decision is made. Among the many supplier selection decisions framework/models include Even-Swap and SMARTER. As demonstrated, the two models have step-by-step guideline that helps decision-makers to settle for the most relevant and appropriate choice that is contingent on the situation in the company. JLR is among the most competitive automobiles not only in the United Kingdom but also within the global space. Having the relevant suppliers who meet the supply chain demands of JRL is the first step towards its prosperity. It is recommended that the company resort to Even-Swap Method sin making its decisions as it is comprehensive. It would help to capture every detail of the available potential suppliers thereby putting the company in a position to make informed decision. The company should also adopt a policy where every employee is made to be responsible with information about the suppliers. Passwords and locks can help achieve this. If these are done, the company’s supply activities would be efficient and effective. References Binder, M. & Clegg, B. (2010) Sustainable supplier management in the automotive industry, New York, Novinka/Nova Science Publishers. Birminghampost.net, (2015) Birmingham post: business news, local news, expert opinion, viewed 27 Jun 2015 . Emmett, S. & Crocker, B. (2009) Excellence in supplier management, Cambridge, Cambridge Academic. Jaguarlandrover.com, (2015) English | Jaguar Land Rover Corporate Website, viewed 27 Jun 2015 Mohile, P. (2008) Multi-objective decision making for supplier selection in outsourcing, London, Cengage learning. Read More