Here is an excerpt from the following April 21st, 2008 Procurement Insights Post titled The Number 1 Question . . . How Can You Help Us? The post was based on my earlier development of a time zone polling capability that I used to address the MRO requirements of both the Department of National Defence and NYCTA in the late 1990s and early 2000s. I sold that company for $12 million in 2001 – the biggest mistake I ever made – but that is another story for another day.
Here is the excerpt:
This ability to intelligently reduce inventory levels generated significant and unexpected savings for the client as they were able to a) lower their investment in inventory, b) reduce warehousing and associated costs, c) eliminate product variables for their field technicians, d) establish a more proficient life cycle management process, and e) capitalize on volume discount contracts when such a strategy made the most sense.
Following the reduction of inventory levels to reflect the realistic requirements of the contract, the remaining product was systematically dispersed utilizing Strategic Stocking Locations (SSL). An advanced time zone algorithm was employed through a central application known as the Interactive Parts Ordering System (IPOS) to ensure prompt and easy access to the right inventory from the right location at the right time. This level of real-time inventory allocation and use was accomplished by developing a real-time polling mechanism that, within seconds, ascertained the SSL site that was best suited to meet the delivery requirements for a specific service call. This same methodology was also used nationally to effectively manage the delivery of military-related service products to 35 geographically dispersed bases across Canada.
While establishing the SSL sites and the corresponding introduction of the IPOS application enabled the transit authority to surpass the 90% SLA requirement of the contract, challenges with service calls for which the required product had not previously been requested or for which historical conditions were sporadic remained. In response to this problem, a process was incorporated to establish and utilize Strategic Geographic Suppliers (SGS). The SGS is a variation of the cluster concept that manufacturers have historically employed.
So, why am I bringing this up while enjoying the first great sips of my morning coffee? See image below.
When I woke up this morning, I realized that I was running low on my daily fix of Lavazza. To ensure I had some for Sunday (the next day), I placed the order about half an hour ago (Saturday).
To my pleasant surprise, the order was confirmed with a delivery ETA of between 10 AM and 1 PM TODAY!
Let’s pause here to watch the following video, Circa Reference 1998 to 2001:
TODAY’S TAKEAWAY
We don’t have to wait for the technology, because the technology is waiting for us!
Procurement Insights
It is time to send Jeff Bezos an invoice!
Posted on June 7, 2025
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Here is an excerpt from the following April 21st, 2008 Procurement Insights Post titled The Number 1 Question . . . How Can You Help Us? The post was based on my earlier development of a time zone polling capability that I used to address the MRO requirements of both the Department of National Defence and NYCTA in the late 1990s and early 2000s. I sold that company for $12 million in 2001 – the biggest mistake I ever made – but that is another story for another day.
Here is the excerpt:
This ability to intelligently reduce inventory levels generated significant and unexpected savings for the client as they were able to a) lower their investment in inventory, b) reduce warehousing and associated costs, c) eliminate product variables for their field technicians, d) establish a more proficient life cycle management process, and e) capitalize on volume discount contracts when such a strategy made the most sense.
Following the reduction of inventory levels to reflect the realistic requirements of the contract, the remaining product was systematically dispersed utilizing Strategic Stocking Locations (SSL). An advanced time zone algorithm was employed through a central application known as the Interactive Parts Ordering System (IPOS) to ensure prompt and easy access to the right inventory from the right location at the right time. This level of real-time inventory allocation and use was accomplished by developing a real-time polling mechanism that, within seconds, ascertained the SSL site that was best suited to meet the delivery requirements for a specific service call. This same methodology was also used nationally to effectively manage the delivery of military-related service products to 35 geographically dispersed bases across Canada.
While establishing the SSL sites and the corresponding introduction of the IPOS application enabled the transit authority to surpass the 90% SLA requirement of the contract, challenges with service calls for which the required product had not previously been requested or for which historical conditions were sporadic remained. In response to this problem, a process was incorporated to establish and utilize Strategic Geographic Suppliers (SGS). The SGS is a variation of the cluster concept that manufacturers have historically employed.
So, why am I bringing this up while enjoying the first great sips of my morning coffee? See image below.
When I woke up this morning, I realized that I was running low on my daily fix of Lavazza. To ensure I had some for Sunday (the next day), I placed the order about half an hour ago (Saturday).
To my pleasant surprise, the order was confirmed with a delivery ETA of between 10 AM and 1 PM TODAY!
Let’s pause here to watch the following video, Circa Reference 1998 to 2001:
TODAY’S TAKEAWAY
We don’t have to wait for the technology, because the technology is waiting for us!
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