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Complex PMO Implementation Delivered Significant Benefits To National Client

Jan Malasek • May 17, 2020

OnDemand recently completed a complex, nation-wide multi-project PMO implementation effort that produced significant benefits to our client, a national collision center chain. As we see the business complexity only increasing, having strong external partner to successfully deliver critical initiatives, especially in time of uncertainty is paramount. The following case study highlights the capabilities we brought to this client – let us know how we can help your organization.

Situation Overview:

National collision center chain with over 350 locations, a portfolio company of a major PE firm was pursuing aggressive growth strategy. Executive leadership identified a host of strategic projects fundamental to this objective. The company tapped OnDemand partner Allen Rupple to provide PMO leadership to ensure implementation success of program initiatives.

Key Focus Areas:

Over the course of the engagement, Allen led several key projects and many internal delivery teams across the following areas:

PRO MODEL – nationwide implementation of standardized 12-step repair operating model across all company locations. Various internal teams were focused on implementing operating standards, store blueprinting, store facility prep, “to-be” process implementation and benefits tracking.

CENTRAL ESTIMATING – co-location of a specialized group of estimators providing support to all locations. This move enabled local store advisors to be much more customer-focused and was the key to significantly increase productivity. 

CCC ONE REPAIR WORKFLOW – system-wide implementation of a new management system that streamlined the vehicle repair process to create a superior repair experience, strengthen relationship with insurance carriers and increase overall customer satisfaction. The workflow provides a unified source and solution for the organization while eliminating many manual processes and duplicate entry/reconciliation required by multiple current, non-integrated systems.

BOS PILOT – establishment of store groupings to share expert resources to address key back office functions including closing files, managing receivables/payables and payroll.

Critical Success Factors:

Strategic Importance… The company, guided by their PE partner, was pursuing an acquisition growth strategy and having all shops embracing a common operating model was paramount.

Executive Sponsorship and Involvement… The strategic project portfolio was fully funded and a top priority.  Regular weekly 1-on-1 meetings with the COO and a 1.5 hour block of time reserved every Monday to provide an update at the Executive Steering Team meeting gave the initiative high visibility.

Strong PMO Leadership… Having highly experienced external PMO lead able to work from the C-level to the shop floor, and able to bring innovative project management tools proved critical to the success.

Key Organization Resources Made Available… The aggressive implementation time-frame required the utilization of top level in-house talent to offset not using an external based consulting team. All the identified resources (4 immediately, then 4 more staggered) were made available full-time to the project.

Transformation takes time… Everyone wants immediate results, but transforming the organization culture from a “task” orientation to a “contribution” orientation takes time. Implementation sequence was adjusted and a balanced metric tracker developed (lead/lag metrics) to promote this transformation path.

Organization Involvement… Multiple levels of formal and informal communication to the organization were required and were incorporated throughout the transformation journey… CEO monthly updates, information sharing lunches, shop implementation success stories, etc.

Shop Implementation Readiness… It was imperative that ALL shops were ready given the aggressive sequence and timing of the implementation (PRO Model… up to 8 stores weekly and CCC ONE averaged 22 stores weekly). Planning had to be over-emphasized and rehearsed via functional team meetings and Pilot efforts to ensure that EVERYONE was fully prepared. Separate work plans (Smartsheet) were detailed for the shop (350+ total shops) and corporate (functional teams) levels to ensure that everyone knew what had to be completed and the time-frame required for completion.

Celebrate successes… It’s important that the organization participates and relishes in the success of the effort. Formally, this was achieved via communications (i.e. success stories) and informally via happy hour events.

Results:

Employee Productivity – over $12 million in realized benefits by Central Estimating team through increased store revenue, greater Service Advisor productivity, and the elimination of duplicate functions via better system integration.

Increase Vehicle Throughput – individual shop locations were able to increase monthly vehicle throughput by 10-20% without adding headcount.

Better Overall Customer Service Experience – significant increase in insurance carrier and end customer experience ratings within 6 months of implementation.

Improved Operating Efficiency – PRO MODEL and CCC ONE promoted formal QA checks, predictable flow and visual queuing that improved operations and quality, and decreased cycle time.

” Allen – your leadership and guidance through all aspects of Pro Model has been invaluable. Thank you very much and I hope we have the opportunity to work together again soon. You have become a part our company’s family and led us on our greatest initiative in our history. Proud of our partnership and thankful for your work.“

COMPANY’S CEO

Meet Allen Rupple

Member of OnDemand Professional Network since 2017

He practices a very decisive and assertive servant leadership through operational excellence, best in class business practices, team development and communication that has led to sustainable and profitable growth of public and private companies.

Pioneer in TPS Lean Manufacturing, Operational Excellence, 6 Sigma, TOC, DFT, DOE Taguchi, Shainin, Shingo, K&T, 8D, PFMEA. APQP, DFM and other manufacturing technologies and improvement initiatives.

Winning Back Trust in Hospital Sourcing

By Jan Malasek • June 12, 2024
Strategic Sourcing is often associated with driving down cost, efficiency improvement and increased service levels. There are some situations where Strategic Sourcing is needed to help rebuild supplier relationships while enhancing trust all the while securing additional resources for core capabilities. Such is an example of work that OnDemand Professional Network member Chris Vu did for post-bankruptcy period at a hospital serving a major metropolitan area. SITUATION OVERVIEW A hospital in New York had emerged from bankruptcy and needed to stay afloat since it was the largest hospital and biggest employer in its Brooklyn neighborhood. The Materials Management/Purchasing Department was able to manage day-to-day activities to support patient care. However, indirect and ancillary areas were secondary in priority and the suppliers were extremely unhappy losing money as a part of the bankruptcy protection process . Chris was brought in to negotiate new contracts with suppliers to obtain improved terms and ensure uninterrupted service. APPROACH An incumbent approach was taken to help prevent disruptions in service and allow stakeholders to focus on their day-to-day responsibilities. In addition, it was difficult finding new suppliers willing to work with a financially distressed organization. As a part of the approach, Chris not only had to negotiate improved terms, but rebuild trust and rapport with suppliers . Expectations were reset with suppliers encouraging them to view the hospital as a new organization and to look forward and not backwards. The hospital’s group purchasing organization was leveraged as a baseline for pricing and terms . In addition, Chris met with current and potential new suppliers, where available, to support operational improvements for the future. CRITICAL SUCCESS FACTORS Leveraging the current supplier base Rebuilding trust with incumbent suppliers Developing custom pricing outside of the hospital’s GPO Identifying innovative opportunities for the longer term RESULTS Pricing and terms were negotiated to provide annual recurring savings of 11% across 36+ suppliers . 2 to 3-year terms were secured with suppliers to ensure continuous service, and in most instances, pricing better than the hospital’s GPO. Stakeholders were also pleased since they were able to maintain their current supplier relationships and didn’t have to trial or switch to new products/services . Furthermore, a pipeline of potential opportunities was left for the hospital to explore in the future. For example, the hospital could invest in new disposal containers for used needles that optimized storage capacity. Or the hospital could review several rent vs. buy scenarios from wheelchairs to floor mats to mops. Meet CHRIS VU - OnDemand Professional Network Member Since 2020

Biotech Procurement Transformation - Case Study

By Jan Malasek • February 27, 2024
Structured approach, cross-functional leadership and rigorous analytics are key to procurement success. I asked a member of our OnDemand Professional Network Priya Kumar to share her approach. Here is her example. SITUATION OVERVIEW Biotechnology company wanted to establish a procurement function for their $120 MM global external operations. Priya was brought in as a Procurement leader to work with the organization to develop a strategic procurement function to drive savings and improve efficiency. APPROACH She worked closely with engineering teams, product development, manufacturing operations and global planning to understand current processes and business priorities. Additionally, she conducted a supplier activity and spend assessment to analyze the current landscape. A thorough analysis of current challenges and gaps in processes revealed the following: Supplier relationships with significant spend were highly transactional Risk and relationship oversight was complex and arduous Frequent planning and forecasting changes led to additional costs, cancellation fees and high risk exposure Supplier contracts were often one-sided, with limited benefits for the client EXECUTION & BENEFITS Priya successfully crafted a robust category strategy to effectively manage and optimize the $120 million expenditure with suppliers . This strategy encompassed thorough market analysis, supplier evaluations, and strategic sourcing initiatives aimed at maximizing value and minimizing risks. Her next step was to streamline processes across the organization, while building a truly strategic procurement function. She built the foundation for strategic sourcing, supplier relationship management and contract lifecycle management. This fostered harmonization in supplier engagement, elevating the value extracted from deepened supplier relationships. By aligning procurement activities with organizational goals and industry best practices, she also fortified the supply chain operations to withstand dynamic market conditions and unforeseen challenges. In partnership with other stakeholder groups, she implemented robust visibility mechanisms within procurement , leveraging advanced analytics and reporting tools to enhance spend transparency and facilitate informed decision-making. This heightened visibility empowered stakeholders to proactively address potential bottlenecks, mitigate risks, and optimize resource allocation. Priya’s greatest achievement was the immediate identification of several contract re-negotiation opportunities that served as quick wins to show procurement value early. Priya developed the negotiation strategy and conducted negotiations with many key suppliers, ensuring alignment with the category strategy and business objectives. In an ever-changing landscape, Priya showed excellent insight and maturity in making agile decisions that would mitigate loss and risk throughout the lifecycle of the contract. She achieved >$15MM of cost savings for Year 1 & 2 through execution of the newly developed category strategy. By leveraging strengthened supplier relationships and employing rigorous negotiation tactics, she secured favorable contract terms and pricing arrangements, driving tangible bottom-line results while maintaining quality standards and service levels. Meet PRIYA KUMAR - OnDemand Professional Network Member Since 2018

Contract Lifecycle Management System Implementation - Case Study

By Jan Malasek • December 26, 2023
Many organizations benefit from implementing Contract Lifecycle Management System (CLMS). The key issues that implementation of a CLMS addresses include (i) lack of a central repository for contracts, documents, and reports, (ii) lack of direct access to documents outside of the contracts organization (email is used to share documents with employees who are not in the contracts organization) and (iii) potential document version control issues . OnDemand recently helped a client with their initial phase of Contract Lifecycle Management System implementation. I want to share the approach and lessons learned as I believe that you will find them helpful as your organization considers enhancements to the way contracts are managed.

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By Jan Malasek • September 13, 2023
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Tom Donatelli Joins OnDemand To Enhance Our Client Service Capabilities And Broaden Our Market Reach

By Jan Malasek • August 3, 2023
OnDemand Resources, the leading provider of independent project and interim talent in Strategic Procurement, Supply Chain and Operations is delighted to announce the addition of Tom Donatelli, a seasoned senior executive with significant experience driving cost reduction, process efficiency and business effectiveness across Fortune 500 companies as our new Vice President Client Services. In this role, Tom will work with clients on identifying new opportunities for enhancing their business results and engaging the right talent to achieve exceptional outcomes.

Spend Assessment – Critical Step To Success Of Strategic Sourcing Initiative

By Jan Malasek • July 13, 2023
Let’s say you’re committed to reducing costs whether it be direct materials or indirect materials and services. Where do you start? This article covers the essential steps for conducting a spend assessment which has a number of key challenges from “dirty data” to stakeholder alignment.

CPO Corner – Is Procurement Getting Better, Or Just Older???

By Jan Malasek • May 10, 2023
By Steve Miller – https://www.linkedin.com/in/stevemiller-coo/ Mike Nolan of SourceSuite.com noted that “the first traces of procurement can be seen throughout ancient history, including the Egyptians in 3,000 BC.”1 Jose Ignacio Lopez de Arriortua made a company’s lead procurement role both famous and infamous over 30 years ago by first helping GM to “save billions of […] The post CPO Corner – Is Procurement Getting Better, Or Just Older??? appeared first on OnDemand Resources.

Experienced Procurement and Supply Chain Consultant Joins OnDemand Resources To Enhance Client Service Capabilities

By Jan Malasek • March 29, 2023
March 29, 2023 OnDemand Resources, the leading provider of independent project and interim talent in Strategic Procurement, Supply Chain and Operations is delighted to announce the addition of Gary Long, a seasoned consultant with significant experience supporting clients in their efforts to achieve exceptional results as they pursue cost reduction and efficiency improvement initiatives to the […] The post Experienced Procurement and Supply Chain Consultant Joins OnDemand Resources To Enhance Client Service Capabilities appeared first on OnDemand Resources.

Brand and Marketing Sourcing – Ensure Success by Having Deep Subject Matter Expertise, Starting Small and Building Strong Relationships

By Jan Malasek • March 21, 2023
A global confectionary company with HQ in the US has embarked on a mission to reduce cost and improve strategic supplier relationships.  While making strong progress in most areas, Brand and Marketing has been a challenge to engage due to their perception that Procurement lacks subject matter expertise.  In order to address this perceived shortcoming, […] The post BRAND & MARKETING SOURCING – ENSURE SUCCESS BY HAVING DEEP SUBJECT MATTER EXPERTISE, STARTING SMALL AND BUILDING STRONG RELATIONSHIPS appeared first on OnDemand Resources.
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