Challenges Organisations Face During

the Transition Phase of an Outsourcing Project.

Managing Global Sourcing MIS40690

Keith BernardNoelle BradyPatrick Walsh

Introduction

• Glanbia was officially established in 1997 .

• Glanbia successfully expanded their global presence after altering their strategy from a focus on commodity markets towards higher margin, value added sectors, becoming one of the world’s leading food suppliers.

• The company’s routing system was very time consuming, often inaccurate and extremely human dependent. The decision to outsource was made.

Scenario cost analysis

Roadmap database used to calculate journey times and distances

Plan delivery schedules when there is a choice of depots

Daily and weekly schedule handling

Provide increased data for strategic analysis

Key Functions Outsourced to Paragon

Methodology

• Our research was conducted over a period of eight weeks.

• Process involved informal interactions, document collection, formal interviews, and interpretation of interviews collected

• Initial interactions resulted in an on-site visit to Glanbia’s headquarters in Dublin where we conducted our first interview

• Culture and workplace

Methodology• All Interviews were recorded• Conducted two formal interviews with Glanbia• OSP provided significant documentation to us during the

research period - Service level agreements- Project status reports- Email transcripts between Glanbia and Paragon

• Issues encountered- Glanbia had a go-live on a different project during this period- Our main point of contact in Glanbia had a family bereavement during the research process

The Case• Laying the Foundations of Trust • Key Personnel Index • Culture and working relationships

• Onsite Visits, Communication and Training

Implementation and Transition

Major Challenges During Transition• Integration of Routing

Software

• Lack of Face to Face Interaction

• Time Consuming• Optimised

routes uploaded into SAPParagon

• Paragon Routes need to be converted into SAP Route table format

SAP• Paragon

(SAP) Routes uploaded into MIS to creates pick filesMIS(voic

e)

Analysis and Discussion

• Case used to highlight the factors that contribute to a positive transition with a view in maintaining quality

• Created a table • Trust• Personnel Involved/Governance• Communication• Culture• Processes

Analysis and Discussion• Criticism’s• Issues with orders at 00:00• Why wasn’t this spotted?• Were the right people consulted?

• Limitations• The case is on a Irish/UK relationship so culture and

language weren’t as big issue as they may have been with an Ireland/EU Mainland or Eastern Europe and Ireland/India or China relationship