1 | 2013 NIB/NAEPB National Conference and Expo Tactics for Commercial Logistics/ Supply Chain Business Development Dale Cottongim 2 | 2013 NIB/NAEPB National Conference and Expo Presentation Agenda Part 1: Logistics and the Supply Chain? What are they? Where does NPAs fit in? Part 2: Logistics Business Development (BD) Recap of Panel Discussion Tools/Exercises 3 | 2013 NIB/NAEPB National Conference and Expo Before Proper Prior Preparation (PPP) Know Your Business Know Your Customer Know Your Value-Added Proposition Commercial business is primarily about profit. 4 | 2013 NIB/NAEPB National Conference and Expo Part 1: What is the Supply Chain? Supply Chain is the flow of materials, information, and finances as they move in a process from the origin point to the end consumer. Logistics involves all of the planning, execution & control required to successfully deliver the product to the end consumer. The goal is to optimize this flow to achieve low cost and high customer service. 5 | 2013 NIB/NAEPB National Conference and Expo Supply Chain Services 3PL – 3rd Party • Distribution • Contract Logistics • Warehousing Closeout • Parts • Packaging • Call Centers/ Machining Help Desks • Packaging • Admin • Document Reclamation Staff Scanning • Manufacturing • Mail Room • BSCs • Document Operations Archiving Management 6 | 2013 NIB/NAEPB National Conference and Expo Supply Chain and Logistics Supplier Manufacturing Manufacturing Inbound Contracts IT 7 Transportation Dealer / Retail Distribution Finance Customer Interface Reverse Sale/After-Sale Marketing Infrastructure & Information | 2013 NIB/NAEPB National Conference and Expo Consumer HR IT NIB in the Supply Chain Supplier Manufacturing Manufacturing Inbound Contracts IT Transportation Distribution Finance Customer Interface | 2013 NIB/NAEPB National Conference and Expo Consumer Reverse Sale/After-Sale Marketing Infrastructure & Information The collective view of all NPAs 8 Dealer / Retail HR IT Value Proposition Considerations Cost Competitive Work Force. Quality high – in product or service. Returns low. Employee Turnover – Low. Hidden Benefit to Customer – Learn job with continued improvement at no additional cost. Can be both the manufacturer and fulfillment agent for some products (3PL). Leverage Government base of work. Unlikely to go out of business. 9 | 2013 NIB/NAEPB National Conference and Expo Value Proposition Consideration U.S.A. Workforce. Community Goodwill/Contributor. 10 | 2013 NIB/NAEPB National Conference and Expo What The Commercial Customer Wants Quality – NPA strength. Cost – An area to explore. Reliable Delivery – NPA strength. Speed of Response – A potential NPA weakness. Proactive vice Reactive – Varies by person and agency Professional Interaction 11 | 2013 NIB/NAEPB National Conference and Expo The Proposal Pieces 12 Opportunity Identification Customer Profile NPA Relevant Performance NPA Value Added NPA Pricing | 2013 NIB/NAEPB National Conference and Expo BD Tools - Exercise Goal: Opportunity Identification Identify how and where the data is collected to respond to a customer. Time: 5 minutes. 13 | 2013 NIB/NAEPB National Conference and Expo BD Tools - Discussion Commercial Opportunity Identification No FedBizOpps – but still applicable. Networking Conferences/Tradeshows Current Events Oklahoma Economic Indicators – August 2013 Disappearing Jobs in the USA – USA Today August 30, 2013 Data Services (Scarborough, Gartner) Consultants 14 | 2013 NIB/NAEPB National Conference and Expo BD Tools - Exercise Goal: Customer Profile Identify how and where the data is collected to respond to profile a customer. Time: 5 minutes. 15 | 2013 NIB/NAEPB National Conference and Expo BD Tools - Discussion Customer Profile Internet Internal Website LinkedIn – Company Site and Employees General: Company Leadership and Current News Business Approaches Business Partners (or Not) Employee Salary Data Internet Chatter Approach to Problem Resolution “We understand that sometimes even with the best communication, problems will arise. We will work with our Customers to resolve their concerns to both our satisfactions. To accomplish this, we draw upon the experience and expertise of our personnel by providing problem resolution tools for our Customers. These tool include aiding communication improvement, gap analyses, six sigma tools, root cause analysis, process mapping, decision making techniques, situation appraisals and coaching/counseling of employees.” Sayres and Associates Quality Assurance Website 16 | 2013 NIB/NAEPB National Conference and Expo BD Tools - Exercise Goal: Relevant Performance & Value-Add Identify NPA relevant performance and value-add to a an opportunity. Time: 5 minutes. 17 | 2013 NIB/NAEPB National Conference and Expo BD Tools - Discussion NPA Relevant Performance Contracts – current and completed Be careful of outdated material Marketing Materials Old-Timers Proposals Employee appraisals Best answer is an up-todate dataset. NPA Value Add Tie past performance, capabilities, and approach together to create the value-added. 18 | 2013 NIB/NAEPB National Conference and Expo BD Tools - Exercise Goal: Pricing Identify how and where the data is collected to price an opportunity. Time: 5 minutes. 19 | 2013 NIB/NAEPB National Conference and Expo BD Tools - Discussion NPA Pricing Finance Contracts Process Review – what are the process steps driving costs? Can they be modified? Indirect Costs – Can I adjust my pricing based on risk? Up or down? Commercial – Quality, Price, Delivery 20 | 2013 NIB/NAEPB National Conference and Expo BD Tactics Summary Speed up your process. Organization: Create a cell within the NPA to focus on commercial. Streamline approval process. Set time limits, primary and alternate approvers. Process Review pricing factors without a proposal pushing your review. Determine if an opportunity is strategic or short-term – may impact your pricing. Create pricing templates. Create past performance templates 21 | 2013 NIB/NAEPB National Conference and Expo BD Tactics Summary Speed up your process. Process Collect past performance centrally. Catalog them for future use. For core services and products, have pricing already developed that can be modified as needed to fit requirements. Organize your people. By process, by commercial and government…. Focus on a core set of functions for opportunities vice chasing anything and everything. 22 | 2013 NIB/NAEPB National Conference and Expo BD Tactics Summary Speed up your process. Process “A well developed, detailed proposal database is an exceptional tool which significantly increases volume and quality while reducing the cost of submitting a proposal. We have witnessed the savings – in time and cost – of a well-developed proposal library. The results are dramatic – a reduction of up to 30% in time and labor preparing a proposal.” Strategic Creations 23 | 2013 NIB/NAEPB National Conference and Expo Before Proper Prior Preparation (PPP) Know Your Business Know Your Customer Know Your Value-Added Proposition Commercial business is primarily about profit 24 | 2013 NIB/NAEPB National Conference and Expo Contacts Dale Cottongim Consultant, Supply Chain 540-295-1994 Dale.cottongim@gmail.com 25 | 2013 NIB/NAEPB National Conference and Expo