Context
In the Learn How to Source eight‑step framework, Step 7: Implement New Supply Chain follows contract signing to ensure that what was negotiated on paper translates into reliable, repeatable operations. The complexity of implementation can range from a quick ERP price‑update to a multi‑phase roll‑out of a new Facility Management provider or qualifying a novel electronic component with full PPQ (Product and Process Qualification). Each scenario demands its own stakeholder engagement, governance, and timeline.
This case is connected to the Learn How to Source course Sourcing Process 2b.
Content – Implement New Supply Chain
Scenario
Your company, TechParts Inc., has just completed Step 6 by contracting two new suppliers:
- Supplier Alpha — a global distributor for standard electronic resistors.
- Supplier Beta — a specialty firm supplying a custom microcontroller module requiring rigorous PPQ (learn more about PPQ and Third Party Witnessing).
You must now execute Step 7 (implement new supply chain) to embed these agreements into your operations:
- Alpha’s contract simply replaces one line‑item price in your ERP “buy‑side” catalog.
- Beta’s agreement includes delivery of samples, first‑article inspections, process validations, on‑site audits, and training for your production team.
Implementation Paths
| Implementation Type | Key Activities | Stakeholders (step 7) | Sample Timeline |
|---|---|---|---|
| ERP Price Update | • Update item master data • Configure new price lists • Publish to e‑catalog | Procurement, IT/ERP support, Accounts Payable | 1–2 days |
| FM Supplier Roll‑out (example) | • Kick‑off meeting • Transition planning (sites, access credentials) • Training facility staff • Establish performance dashboards | Procurement, Facilities Management, IT, Operations, Finance | 4–6 weeks (or more) |
| Component PPQ | • Sample order and receipt • First‑article inspection • Process validation runs • On‑site supplier audit • Quality sign‑off • Production release | Procurement, Quality Assurance, Engineering, Production, Supplier Quality | 8–12 weeks (or more) |
Learning Points & Reflections
Stakeholder Engagement
- ERP Price Update: Limited to Procurement and IT — low touch.
- PPQ Process: Requires a cross‑functional team (Engineering defines specs, QA runs tests, Production plans trials, Procurement tracks supplier actions, Finance sets up invoicing).
- Reflection: Which stakeholders would you involve at each stage, and how would you keep them informed?
Governance and Roles
- Assign clear process owners: IT for data updates, QA for PPQ, Facilities for FM.
- Establish a steering committee for complex transitions to resolve issues quickly.
- Reflection: How would you structure governance to ensure accountability and timely issue resolution?
Communication Plan
- For a simple ERP change, a brief email to operations and accounts payable suffices.
- For PPQ, circulate a weekly status dashboard, hold bi‑weekly reviews, and escalate risks immediately.
- Reflection: What communication cadences and channels would you employ for each implementation type?
Time Schedule and Milestones
- ERP Price: Milestone → “New price live”
- FM Roll‑out: Key milestones at site‑by‑site go‑live, staff training complete, SLA baseline monitoring.
- PPQ: Milestones at sample completion, test approval, audit pass, pilot production, full production.
- Reflection: Draft a high‑level Gantt chart or milestone plan for the PPQ case. Which tasks are on the critical path?
Final Reflection Question
How does the complexity of your chosen contract implementation (simple ERP update vs. multi‑phase PPQ) influence the detailed project schedule you originally drafted in Step 1?
Consider impacts on duration, resource allocation, risk buffers, and communication checkpoints.
Extra Reading: Sample Executions of Step 7 – implement new supply chain
Below are three sample scenarios that illustrate how organizations execute Step 7: Implement New Supply Chain across different levels of complexity.
1. Installing a New Manufacturing Machine
Scope:
Roll out a high‑precision CNC milling machine on the factory floor.
Key Activities:
- Site preparation: Electrical upgrades, foundation pouring, environmental controls
- Machine delivery & rigging: Coordinate transport, crane‑in, and leveling
- Installation & calibration: Vendor engineers set up axes, controllers, and safety interlocks
- Operator training: Hands‑on sessions for machine operators and maintenance staff
- Pilot production run: Produce test parts, measure tolerances, fine‑tune process parameters
- Handover & sign‑off: QA approves first articles; production formally accepts the machine
Stakeholders:
Engineering, Maintenance, Quality Assurance, Safety, Procurement, Vendor Field Service
Sample Timeline:
| Week | Activity |
|---|---|
| 1–2 | Site upgrades & contractor readiness |
| 3 | Machine delivery & rigging |
| 4–5 | Installation & calibration |
| 6 | Operator training |
| 7 | Pilot production & QA sign‑off |
| 8 | Full production launch |
2. Onboarding a New Stationery Supplier into the E‑Procurement Platform
Scope:
Add “Office Essentials Co.” as a catalog supplier for pens, paper, and desk accessories in the company’s e‑procurement system.
Key Activities:
- Data collection: Obtain product list, prices, lead times, packaging weights
- Catalog configuration: Map SKUs to internal item codes, upload images, set pricing tiers
- PunchOut integration: Test web‑to‑site connectivity for real‑time ordering (if applicable)
- Approval workflows: Define approval levels (requisition → department manager → finance)
- User training & communications: Send quick‑start guides and hold a 30‑minute demo webinar
- Go‑live & support: Monitor first orders, resolve punch‑out glitches, collect user feedback
Stakeholders:
Procurement, IT/e‑Procurement Team, Accounts Payable, Department Managers, Supplier Onboarding Coordinator
Sample Timeline:
| Day | Activity |
|---|---|
| 1–2 | Data gathering & template completion |
| 3–4 | Catalog upload & mapping in ERP |
| 5 | PunchOut (or order‑API) connectivity testing |
| 6 | Workflow & approval routing configuration |
| 7 | User communications & demo webinar |
| 8 | Go‑live; first‑order monitoring |
3. Transitioning to a New IT Service Desk Provider
Scope:
Switch help‑desk services from legacy Provider A to new Provider B across the organization’s 1,000 users.
Key Activities:
- Contract kick‑off meeting: Align SLAs, escalation paths, onboarding timeline
- Knowledge transfer: Migrate ticket histories, asset inventories, support documentation
- Tool integration: Configure single‑sign‑on (SSO), user directory sync, ticketing workflows
- Pilot support wave: Run a 2‑week pilot with a small user group (e.g., Finance & HR teams)
- Full roll‑out: Phased waves by department over 4 weeks, with daily post‑deployment check‑ins
- Performance monitoring: Weekly SLA scorecards, user satisfaction surveys, continuous improvement reviews
Stakeholders:
Procurement, IT Service Management, HR (for communications), Security/Compliance, Provider B’s Onboarding Team
Sample Timeline:
| Week | Activity |
|---|---|
| 1 | Kick‑off & knowledge transfer planning |
| 2 | Tool integration & test environment |
| 3 | Pilot wave support |
| 4–7 | Department‑by‑department roll‑out |
| 8+ | SLA monitoring & optimization |
Reflection Prompt:
For each scenario above, consider how your original project schedule (from Step 1) would need to be adjusted for resource allocation, risk mitigation, and stakeholder engagement given the varying levels of complexity.
Note: Illustration to the case “Case Study: Step 7 – Implementing Contracts and Implement new Supply Chain” was created bu SORA on April 20, 2025.