ICN’s Major Projects Supplier Program (MPSP) consists of conducting a capability assessment and action planning for eligible Small to Medium Sized Enterprises (SME) throughout Queensland via a Third Party Provider such as L&SC Strategies Click here for more information.

L&SC Strategies has assisted 76 SMEs (including the completion 36 x MPSP's) across Queensland and has witnessed firsthand the seriousness, dedication, commitment and passion that these SME's apply in their operations to meet the needs of their client base. All have excellent potential to expand and grow.

Specifically as a result of conducting 36 x MPSP’s, L&SC Strategies has identified the following six issues most common within small businesses that need to be addressed to increase their capability and capacity to become fiercely competitive and to successfully tender for opportunities within the major projects supply chains:

1. Inefficient Information Management
2. Ineffective Order Management Process
3. No Strategic Business Plan (including no Strategic Marketing Strategy/Plan/Schedule)
4. Ineffective Supply Chain Marketing
5. Lack of Performance Measurement & Management
6. Lack of Employee Engagement & Development

Some of these lessons learnt are also relevant for Corporations as well.

1. Information Management

Whilst good discipline does exist with paper-based and manual processes, significant benefits are to be gained by implementing an integrated Enterprise Resource Planning (ERP) System. Extensive use of paper-based processes and non-integrated applications leads to duplication of records, process delays and inefficiencies, lack of information visibility across the company, lack of performance measurement and reporting, significant dependency on personnel knowledge and memories, the need for numerous or long management meetings, lack of adequate capacity planning of equipment and resources, inability to prioritise customer orders in a timely manner as orders increase, inefficiencies in production order planning and scheduling, lack of ability to adequately track the status of customer orders, lack of adequate tracking of costs, ineffective stock management and delays in delivering customer orders on time.

Efficient Information Management: The key lesson is to replace ALL manual, paper-based processes with a fully integrated technology solution. A fully integrated technological solution can reduce operational costs in SME's by the equivalent cost of 1-2 positions plus the additional revenue gained from increased efficiency which leads to increased service capacity. I received a Top Student Award at RMIT University Melbourne for proving this in the subject e-Business Supply Chains as part of my Logistics Masters (a few years back) when I assisted a manufacturing SME as part of a major project assignment, plus we've proved this for many SME's and corporations. We are also not suggesting loss of positions by any means, any 'time-capacity' gained within positions is fully replaced with duties including analysis, planning, strategy development, research, continuous improvement and implementation (wouldn't that be nice - to work on the business!).

Please remember this: Every time you need to pick up a pen to fill in a form in your company or for any business in your supply chain, you are going back in time. Every time you fill in a form (in your company or for any business in your supply chain) that is not directly integrated with a fully integrated database, you are going back in time. Any company with manual, paper-based processes within your supply chains = a non-competitive supply chain. Businesses don't compete with businesses; supply chains compete with supply chains. Who's letting your supply chains down? Move forward now, otherwise you won't achieve optimum efficiency gains that will allow you to increase your capacity to serve major projects, take on more work and increase revenue through increased capacity. Supplier Development and Customer Development improvement initiatives may also be required to increase the competitiveness of your supply chains.

SME’s with disciplined manual, paper-based processes should commence researching suitable ERPs that will resolve the majority of information management and reporting requirements, process delay issues etc. SME’s turning over from as low as $500k have implemented an ERP.

In a future newsletter and/or workshop we will provide information on the following:

• The impact of ineffective and inefficient information management systems
• Why paper-based processes should be replaced by technology solutions
• What is an Enterprise Resource Planning (ERP) System
• The benefits of effective and efficient information management systems such as an Enterprise Resource Planning System
• How to research and evaluate ERP’s including what questions should be asked of the software providers and reference sites
• Information regarding assistance to evaluate and select a suitable ERP including QMI’s ERP Selection Service
• How to become ERP-ready
• ERP implementation planning

Can’t wait for the article? For assistance with inefficient information management call us now on 07 4927 5433 or email This e-mail address is being protected from spambots. You need JavaScript enabled to view it

2. Order Management

The Order Management Process is the most common process which encounters the majority of issues experienced by an SME as it involves all activities from customer enquiry through to client payment. Common issues include lack of identification of roles and responsibilities throughout the entire process, lack of system integration and automation to seamlessly progress each activity through each stage of the process, inability to measure “Deliver In Full On Time”, lack of supplier pre-qualification, plus all the issues identified above under “Inefficient Information Management”.

Effective Order Management Process: To reduce customer service lead time, process map your Order Management process; identify and address all people/process/ technology issues at each step in the process; clarify key roles and responsibilities; implement a fully integrated ERP; pre-qualify your strategic suppliers; establish supply agreements; measure supplier performance; achieve greater than 95% DIFOT (Deliver In Full On Time) and promote performance results to your target market.

In a future newsletter and/or workshop we will provide information on the following:

• How to process map the Order Management Process
• How to identify issues, bottlenecks and delays throughout the Order Management Process
• How do process issues, bottlenecks and delays impact on customer service
• The role of technology in the Order Management process
• Roles and responsibilities throughout the Order Management process
• Ways to address issues, bottlenecks and delays in the Order Management Process
• How to prioritise addressing issues, bottlenecks and delays
• Developing your own supplier pre-qualification process
• How to measure and report “Deliver In Full On Time” (DIFOT)
• How to achieve at least 95% DIFOT

Can’t wait for the article? For assistance with the order management process call us now on 07 4927 5433 or email This e-mail address is being protected from spambots. You need JavaScript enabled to view it

3. Strategic Business Planning

A large number of SME’s do not have strategic business plan (“it’s in my head”) and this is causing a lack of visibility and input across the company regarding its strategic direction and how it plans to get there; lack of identification of the company’s preferred target market; lack of understanding how a company’s strategic direction towards its preferred target market impacts directly on the company’s infrastructure, equipment, resources, capabilities, capacity requirements, staffing, roles, expertise, technology requirements, marketing and promotions; and a lack of succession planning.

Effective Strategic Business Planning: Develop a Strategic Business Plan which includes a Strategic Marketing Strategy/Plan/Schedule (including defining the key characteristics of your target markets). Communicate specific strategic objectives to your team (everyone reading off the same page). Align everything you do with the Strategic Business Plan including infrastructure, facilities, equipment, resources, capabilities, capacity, staffing, training, roles, expertise, technology, marketing, promotions, succession planning, finances etc – and include an Action Plan per area regarding how each will be achieved over time, by who and by when. A plan that is “in your head” is not visible to your team and it is also very difficult to keep all of this in your head. Revise the Plan quarterly; report against it monthly. Then hire a Mentor to hold your hand to implement the Plan.

In a future newsletter and/or workshop we will provide information on the following:

• What are the components of a good Strategic Business Plan
• How does and should a company define its products and services
• How to identify the company’s preferred target market and market channels
• How to identify the characteristics of the preferred target market
• How to differentiate the characteristics of the preferred target market for production orders versus customised services
• How to align strategic direction with the company’s preferred target markets
• How a company’s strategic direction impacts on every aspect of the company including infrastructure, equipment, resources, capabilities, capacity requirements, staffing, roles, expertise, technology requirements, marketing and promotions
• What is succession planning
• How to conduct a succession planning exercise
• How to develop an Action Plan that ensures that every aspect of the company supports its strategic direction

Can’t wait for the article? For assistance with the strategic business planning call us now on 07 4927 5433 or email This e-mail address is being protected from spambots. You need JavaScript enabled to view it

4. Supply Chain Marketing

Developing a Strategic Business Plan also includes developing the Strategic Marketing Plan. The common issues identified include the lack of identification of the company’s preferred target market; lack of market research; lack of acknowledging how the preferred target market wants to do business; wasting money on non-targeted promotional activities; lack of business development and understanding how to conduct business development (including strategic and operational roles); lack of recording and monitoring of business opportunities; lack of internet presence and lack of case studies and testimonials on the website; lack of Customer Relationship Management; lack of client surveys; lack of in-service feedback; lack of recording of client feedback and follow-up.

Effective Supply Chain Marketing: Closely tied with the Strategic Business Plan is the Strategic Marketing Plan. Identify the company’s preferred target market; conduct market research of the preferred target market; identify how the preferred target market wants to do business; implement direct target marketing; conduct business development and Customer Relationship Management activities; record and monitor business opportunities; promote case studies and testimonials on your website; survey your clients, seek and record feedback, track corrective actions; develop strategic client relationships.

In a future newsletter and/or workshop we will provide information on the following:

• What is Supply Chain Marketing
• How to conduct market research
• How best to do business with your preferred target market
• What is Customer Relationship Management
• How to conduct client surveys, seek in-service feedback, record feedback and corrective actions, follow-up and the role of technology
• Identifying suitable business development activities for your preferred target market
• How to record and monitor business opportunities
• How to ensure your website supports your strategic direction and adequately promotes your capability and capacity

Can’t wait for the article? For assistance with the supply chain marketing call us now on 07 4927 5433 or email This e-mail address is being protected from spambots. You need JavaScript enabled to view it

5. Performance Measurement & Management

Whilst some performance areas are measured it is mostly adhoc and not aligned to the company’s strategic goals. The common issues identified include a lack of knowledge what performance to measure and how to measure performance; lack of technology to measure performance; disconnect between operational and strategic performance measures; lack of awareness or knowledge of a Balanced Scorecard; lack of alignment of Key Performance Indicators to process output and position accountabilities.

Effective Performance Measurement & Management: Develop a Balanced Scorecard that identifies strategic KPIs (Key Performance Indicators; targets) and identifies and aligns operational KPIs to strategic outcomes. Automate performance reporting in the ERP and rely on ERP performance reporting at required intervals. Align KPIs to process output and position accountabilities. Record and track corrective actions in a timely manner.

In a future newsletter and/or workshop we will provide information on the following:

• What is effective Performance Measurement & Management?
• How to identify what to measure and how to measure it
• How to ensure operational measures align with strategic measures
• The role of technology in performance measurement, reporting and management
• How to align Key Performance Indicators to process output and position accountabilities
• Types of performance measures
• What is a Balanced Scorecard
• How to develop a Balanced Scorecard

Can’t wait for the article? For assistance with the performance measurement and management call us now on 07 4927 5433 or email This e-mail address is being protected from spambots. You need JavaScript enabled to view it

6. Employee Engagement & Development

SME's have considerable skills and expertise on their teams. They are so busy; who has time for continuous improvement? Issues identified include a lack of employee involvement in continuous improvement; lack of continuous improvement programs; lack of seeking employee input and feedback; lack of staff meetings; lack of knowledge how to motivate staff and how to re-engage staff who have become distant and disengaged; how to get staff to contribute during meetings; lack of development of staff training plans and programs.

Effective Engagement & Development: Seek to re-engage and motivate staff who have become distant and disengaged by seeking employee involvement in continuous improvement programs. Google “Maslow’s Hierarchy of Needs” – align this model to business outcomes – are the needs of each employee being met? Addressing each level of need will increase staff motivation. Develop and implement staff training plans and programs in alignment with the Strategic Business Plan after conducting a training needs analysis per employee. Remember the 85/15 Rule: 85% of the time, issues that occur in the workplace are due to management not clearly explaining expectations, not establishing systems and processes or providing the tools and technology that will set their employees up for success. 15% of the time it is the employee that may requiring training, re-training or counselling.

In a future newsletter and/or workshop we will provide information on the following:

• What is employee engagement and development
• What are continuous improvement programs
• How to involve and engage employees in continuous improvement programs
• How to develop a continuous improvement program
• How to motivate and re-engage staff who have become disengaged
• How to hold effective meetings and get staff to contribute during meetings
• How to align staff meetings or Toolbox meetings with the Strategic Business Plan
• What is a staff training plan or program
• What is a Position Description and why have them
• What is a training needs analysis
• How to conduct a training needs analysis
• How to develop a staff training plan or program

Can’t wait for the article? For assistance with the employee engagement and development call us now on 07 4927 5433 or email This e-mail address is being protected from spambots. You need JavaScript enabled to view it

Article by Sharyn Grant