Presented By Lokesh Narang Aditya Agarwal

y Dilemma over choosing supplier and partner in

implementing an enterprise-wide procurement and supplier management system. y Criteria on which the decision should be made.

y Production of over 150818 motorcycles per year . y Dealers in 67 countries. y 6000 employees and supported 600 independently

owned dealerships. y Manufacturing facilities in Wisconsin, Pennsylvania and Missouri. y Wholly owned subsidiaries in Germany, UK, Benelux and Japan.

y Competed Primarily in Heavyweight (>651cc)

motorcycle market. y Harley-Davidson bikers were perceived as young, reckless and born to be wild. y Customer Profile has changed over years and Men in age of 40¶s who are adventures likes to ride these bikes. y Company valued both individaul participation and team work

y Instead of Hierarchical

structure , an interlocked 3 circle structure y CDC : Create Demand y PPG : Produce Product Group y PSC : Provide support

CDC

PPG

PSC

y H-D had an office of CIO with three directors. y CIO is seen as internal consultant to give guidance and

direction regarding technology. y Each IS director is tightly integrated in the business decisions of the circle. y To guide IS results each circle of leadership had an IT circle.

y The project was pursued by part time resources from y y y y

each procurement organization. Mapping as is Process . Stakeholder Survey. Mapping to be Process . People, Process and Technology.

y SMS Goals sent to an industry research organization for

recommendations on potential software suppliers.
y 6 suppliers recommended + Harley Davidson added several

more based on incumbency.
y Potential suppliers requested to notify Harley Davidson of

their intent to bid. y Provider Conference organized y People present in Provider Conference
y Project Manager y Change Management Person y Process Re-engineering person

y No executives present in the conference.

y Background of Harley Davidson provided to the suppliers. y Values and expectations shared with the suppliers. y Stressed on following:
y Not seeking a full ERP Solution y They have well defined scope y They do not require additional functionality y Two way accountability will be there in the contract

y 8 suppliers submitted response to RFQ and a self

evaluation checklist. y Functionality checklist evaluated quantitatively by Harley Davidson to determine functionality fit. y Each member viewed all proposals. y Well documented evaluation based on
y Specifications offered y Strengths and weaknesses y Critical requirements

y Presentations attended by SiL K team and IT

Specialists.

y Evaluation of combination of written proposal, y y y y

presentations and notes from each member. Suppliers whose self evaluation rating was less than 90% were not taken into consideration. Focus on functionality rather than costs. Finally 3 potential suppliers selected. Visits to these 3 suppliers planned for software demonstration.
y Ten scenarios based on process and technology

requirements created for demonstrations.

Positives 1. Very attentive to details and people dynamics like representatives asked appropriate questions. 2. Acknowledged Harley-Davidson s values. 3. Passionate about their product . 4. Comfortable with Harley-Davidson s style of working. Also SiL K team comfortable with them during company visits 5. Well documented proposal addressing all the issues. (93.4% score) 6. Bought Harley-Davidson s gear for their whole team. 7. Change Management and training part of implementation strategy. 8. Provided work around too. 9. High manufacturing experience

Negatives 1. Package did not provide web enablement

Positives

Negatives

1. Major ERP Supplier widely admired in 1. Expensive products the industry. 2. Highest scoring on functionality (98.7%) 3. Highly professional 2. More formal than Harley-Davidson was used to. 3. Did not emphasize on methods/processes for assessing organizational needs and preparing people for change. 4. Few SiL K members not comfortable with heavy consultant attitude. 5. Did not pay attention to all the members in the group.

4. Comprehensive and immaculate presentation 5. Seamless web enabled interface 6. Software product came very close to the details mentioned by Harley Davidson. 7. Provided work arounds.

Positives 1. Engaged by Harley Davidson to provide systems in a different functional area. 2. High score on self evaluation checklist (96.8%) 3. Potential political and economic advantages as Harley-Davidson was already associated with this supplier.

Negatives 1. Proposal not according to the RFQ.

2. Bad initial presentation. 3. Did not demonstrate much functionality in first presentation.

4. Good reviews for ERP packages in the 4. Low rating on technical approach. press. 5. Highly competitive software + Price advantages. 6. Integration advantages.

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