Thursday, November 17, 2011


Assume the following JIT model cannot begin until the customer signs off on a contractual agreement.  Not applicable in retail or point of sale models.

In some cases, a company may have well established account relationships and the expectations of the customer starts at the point of BANT.  When the opportunity matures to a point where you have a commit, pending the hard copy purchase order or signed statements of work. 

Geographical Considerations
Never expect to have a set of hard rules around any direct customer model.
  1. Assume the in country shipment model whenever possible.  
    1. Your logistics 
    2. Your creditability for on-time 
    3. Your accuracy on device and labor cost
    4. Your insurance cost
    5. Your ability to quickly respond with a replacement in any defect identified during installation
specifications single cookie cutter model in any direct business model.
In Europe or geographies where communist or under-developed countries.  You must assume a higher regulated geography with the headquarters within the same, has an in country model.

highly regulated you might have the ability to influence "IF" the agreement and headquarters office exist within the geography.

include the customer order for the connectivity with a 12 week no better and rarely met target.
  • The customer will not wait beyond the 12 weeks.  
  • The order detail has to be well designed with exact specifications including device connectivity specifications to the customers carrier end point.  
    • The video duplex and codec 
    • The connection to the duplex from the end point
  • The size of the monitor in these scenarios presented the 2nd major delay in any per-fabrication.  
    • Some customers wanted a better system in the CEO's office
    • Some customers were not as concerned about cosmetics in a 2nd location
  • We elected to use local cabinet makers to reduce the shipment and chance of delays beyond the tight window of 12 weeks.
  • We had to ensure in country delivery of any powered devices to prevent incorrect shipments from any source without the appropriate geography configurations.  

and configuration to allow components to arrive on-time from various sources to a common target.

Systems typically source devices of various types from up to 4 on these scenarios, however up to 180 suppliers on an executive briefing center.

For smaller or specifically the video components, I always try to limit the transport to absolutely the lowest number of physical movements.

he destination would be timed to not ship before, but must deliver complete onsite at the install location.
  1. Challenge, difficult to maintain the on-time delivery
  2. Requires resources who spend 50% or more of their time managing equipment delivery.  
    1. Ship to your own location within the proximity of the install team requires sites with caged physical storage.
      1. Helps reduce insurance cost
  3. Requires backup plan for lost equipment that prevents your production 
    1. Cost resource time and scheduling a partial build 
    2. Consistency of crew-rarely works out and ramp up from another teams install requires anther full day
If the customer has a problem with the lead time, assume looking at the equipment in their logistics center would be just as frustrating.
custom specifications, new in the market as defined by industry analyst.
by customer and higher expense to operate in the early phases of your execution.  

 Service Provider Avoiding No Win Situations
  • This wasn't a hard dependency on determining the equipment defect.  
  • We initially kept two of everything, switching the devices confirmed a defect.   
  • If Sony had assumed or intruded on this connectivity technology delivering into every customers network. 
    • Sony assumes the risk without the expertise to be effective.  
    • Nothing about the model worked.
    • Pass through billing, increased an already costly offer.
  • Every customer had a unique configuration that needed to be programmed based on the connectivity decision.  
A custom cabinet 
Handcrafted for every customer, without the ability to build in advance.  that rolled yet had a very sleek cabinet with beveled glass in the front and mounted video and ascend component showing lights without any cords or cables.  very small part of the solution, yet vital to presentation of the system.  
  • A rolling stand for the monitor and Codec
    • Each system was going to be customized by the monitor size
    • Each order would require a custom stand built based on the demand.  
Recognizing Revenue
  • While this further contributes to certain barriers, if not managed to compliment the cost to effort.  
  • Our model allowed us to segregate the barriers outside our scope with the customer.  

A key to a just in time model; 
  • A hybrid role unlike the channel order management contact.  
    • Setting the tone for the way the engagement should go in a specific sequence
    • Removing any noise that can set unrealistic or lower margin expectations
    • Making the thread between each process step connect using data 
      • How to use an order number as the project identifier in your purchase orders with your supplier?  
  • Unknowns in new business models
    • Video quality wasn't actually the root cause
      • Logistics were becoming a threat and higher defects were constant
      • I began delivering the monitors myself.  
    • In comparison to the rest of the business, Sony no longer in this market.  
      • They are a quality organization that saw the quality had too many external factors to be effective.  
The model described was using a just in time model, in a small example.  

You can also review the System Integrator selected to sole source these same products in the joint solution and beyond this role.  

I was recruited to make the model one that had fewer resource dependencies and plans to have operational support with central accountability.

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