Comments on: #3 – The Activity Trap http://www.vestedoutsourcing.com/the-activity-trap/ Thu, 19 Jan 2012 00:54:28 +0000 hourly 1 http://wordpress.org/?v=3.1.3 By: Ten Ailments of Outsource Relationships » Corporate Real Estate http://www.vestedoutsourcing.com/the-activity-trap/comment-page-1/#comment-17148 Ten Ailments of Outsource Relationships » Corporate Real Estate Thu, 19 Jan 2012 00:51:52 +0000 http://rebwebhosting.com/ekv/?p=57#comment-17148 [...] The Activity Trap [...] [...] The Activity Trap [...]

]]> By: Mark Nassutti http://www.vestedoutsourcing.com/the-activity-trap/comment-page-1/#comment-7084 Mark Nassutti Wed, 27 Apr 2011 02:14:09 +0000 http://rebwebhosting.com/ekv/?p=57#comment-7084 Activity-based pricing can cause freakish unintended consequences as they can create incentives that actually prevent achievement of what the outsourcing company really wants. How can this happen? http://scvisions.blogspot.com/2011/04/freaks-in-supply-chain.html Activity-based pricing can cause freakish unintended consequences as they can create incentives that actually prevent achievement of what the outsourcing company really wants. How can this happen? http://scvisions.blogspot.com/2011/04/freaks-in-supply-chain.html

]]> By: The Imp of the Perverse in Outsourcing | Vested Outsourcing http://www.vestedoutsourcing.com/the-activity-trap/comment-page-1/#comment-1139 The Imp of the Perverse in Outsourcing | Vested Outsourcing Tue, 17 Aug 2010 14:01:47 +0000 http://rebwebhosting.com/ekv/?p=57#comment-1139 [...] there are significant disincentives to innovation and creativity, many resulting in what I call Ailment #3, the Activity Trap. If pay rates are based on each transaction, it follows that the more [...] [...] there are significant disincentives to innovation and creativity, many resulting in what I call Ailment #3, the Activity Trap. If pay rates are based on each transaction, it follows that the more [...]

]]> By: Failure, Success, Entropy, and Outsourcing | Vested Outsourcing http://www.vestedoutsourcing.com/the-activity-trap/comment-page-1/#comment-499 Failure, Success, Entropy, and Outsourcing | Vested Outsourcing Tue, 06 Apr 2010 12:05:05 +0000 http://rebwebhosting.com/ekv/?p=57#comment-499 [...] thought meshes with one of the 10 outsourcing ailments that I call the Activity Trap (#3), which can make a transaction-based outsourcing contract less than successful and less than [...] [...] thought meshes with one of the 10 outsourcing ailments that I call the Activity Trap (#3), which can make a transaction-based outsourcing contract less than successful and less than [...]

]]> By: Gopal Anandan http://www.vestedoutsourcing.com/the-activity-trap/comment-page-1/#comment-77 Gopal Anandan Thu, 10 Dec 2009 03:32:34 +0000 http://rebwebhosting.com/ekv/?p=57#comment-77 Good examples sighted here and I'd like to add one too. In a loosely structured contract (with an outsourced procurement partner) - we did find a variant of the first example. Besides purchasing more of what was actually needed, the unit purchase price was high as well - thus increasing the profits (which was a % of the total purchases made) of the outsourced partner. The most common reason cited for the relatively higher prices were insufficient and very less time provided for purchases which was forcing spot procurement. The need for tightening and regular monitoring of the contract cost clauses, service level expectations, price variation clauses was immediately felt. Regards, Gopal Supply Chain Consultant Good examples sighted here and I’d like to add one too.
In a loosely structured contract (with an outsourced procurement partner) – we did find a variant of the first example. Besides purchasing more of what was actually needed, the unit purchase price was high as well – thus increasing the profits (which was a % of the total purchases made) of the outsourced partner. The most common reason cited for the relatively higher prices were insufficient and very less time provided for purchases which was forcing spot procurement.

The need for tightening and regular monitoring of the contract cost clauses, service level expectations, price variation clauses was immediately felt.

Regards,
Gopal
Supply Chain Consultant

]]> By: #3 – The Activity Trap | Vested Outsourcing | ManufacturerZone.Com http://www.vestedoutsourcing.com/the-activity-trap/comment-page-1/#comment-8 #3 – The Activity Trap | Vested Outsourcing | ManufacturerZone.Com Mon, 14 Sep 2009 19:35:48 +0000 http://rebwebhosting.com/ekv/?p=57#comment-8 [...] [...] [...] [...]

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