10 elements of a vested agreement by andrew downard
Rule 1: Outcome Based vs Transaction Based business model Element 1: Business Model Element 2: Shared Vision statement and statement of intent Rule 2: Focus on the WHAT, not the HOW Element 3: Statement of objectives/workload allocation Rule 3: Clearly defined and measurable desired outcomes Element 4: Performance metrics for desired outcomes Element 5: Performance management Rule 4: Pricing model incentives are optimised for cost/service tradeoffs Element 6: Pricing model (margin matching/incentives framework) Rule 5: Insight vs Oversight governance structure Element 7: Relationship management framework Element 8: Transformation management Element 9: Exit management plan Element 10: Special concerns and external requirements
Considered as Asia’s largest end-toend Logistics and Supply Chain Conference, the event witnessed attendance of over 450 attendees, 100 speakers and 35 exhibitors. The Conclave successfully revealed unique strategies to deploy in business models to meet the requirements of the new economic era, drive renewed growth and gain market share.
As a keynote speaker, Rob O’Byrne, Group Managing Director, Logistics Bureau spoke about the different levers which impacts the bottom-line of a supply chain. During his presentation, he discussed the ‘high leverage’ areas of supply chain management to gain the biggest bottom line improvement, ideas to focus on for real business improvement. Andrew Downard, Director, AD Supply Chain Group was the next keynote speaker of the day who focused on delivering better service, reducing cost and increasing innovation. Satish Karunakaran, Vice President – Planning & Supply Chain, Madura Fashion & Lifestyle; S K Tyagi, Director – SCM, raymond Ltd; Pramod Sant, Vice President – Logisitics, Siemens Ltd; Rajeev Mehta, Executive President – Business Development, Ultratech Cement and Tej Nirmal Singh, Director – Supply Chain, Ericsson India.
According to Singh, supply chain strategy needs to be inline with the global product strategy of a company. He said, “The biggest challenge today is to align both local supply chain and global product strategies. In such cases, a company should always revisit or revise their strategies frequently to bring in customer satisfaction. Also, companies should be flexible enough to tweak their strategies as per their target customer needs.” Echoing similar thoughts, Sant said, “Companies can’t have long term strategy as customer needs are changing at a faster pace. Also, we need to adapt to changing technology and customer needs and at the same time ensure that the changes are not impacting on the bottom-lines.” He also informed that companies should absorb knowledge coming from both customers and competitors.
The power-packed business sessions and panel discussions at the event were well attended and proved to be an excellent knowledge-sharing platform for the industry. The event was followed by the seventh Express, Logistics & Supply Chain Awards 2013.