Presented By

Lokesh Narang
Aditya Agarwal
Agenda
Dilemma over choosing supplier and partner in
implementing an enterprise-wide procurement and
supplier management system.
Criteria on which the decision should be made.
Harley Davidson Motor Company
-Overview
Production of over 150818 motorcycles per year .
Dealers in 67 countries.
6000 employees and supported 600 independently
owned dealerships.
Manufacturing facilities in Wisconsin, Pennsylvania
and Missouri.
Wholly owned subsidiaries in Germany, UK, Benelux
and Japan.
Harley Davidson Motor Company
-Overview
Competed Primarily in Heavyweight (>651cc)
motorcycle market.
Harley-Davidson bikers were perceived as young,
reckless and born to be wild.
Customer Profile has changed over years and Men in
age of 40’s who are adventures likes to ride these
bikes.
Company valued both individaul participation and
team work
Organizational Structure
 Instead of Hierarchical
structure , an interlocked 3
circle structure
 CDC : Create Demand
CDC
 PPG : Produce Product
Group
 PSC : Provide support
PPG PSC
Information Systems Organization
H-D had an office of CIO with three directors.
CIO is seen as internal consultant to give guidance and
direction regarding technology.
Each IS director is tightly integrated in the business
decisions of the circle.
To guide IS results each circle of leadership had an IT
circle.
Supplier Information Link ( SiL’K)
The project was pursued by part time resources from
each procurement organization.
Mapping “as is “ Process”.
Stakeholder Survey.
Mapping “to be Process”.
People, Process and Technology.
Supplier Selection Steps
SMS Goals sent to an industry research organization for
recommendations on potential software suppliers.
 6 suppliers recommended + Harley Davidson added several more
based on incumbency.
Potential suppliers requested to notify Harley Davidson of
their intent to bid.
Provider Conference organized
People present in Provider Conference
 Project Manager
 Change Management Person
 Process Re-engineering person
No executives present in the conference.
 The Provider Conference
Background of Harley Davidson provided to the suppliers.
Values and expectations shared with the suppliers.
Stressed on following:
 Not seeking a full ERP Solution
 They have well defined scope
 They do not require additional functionality
 Two way accountability will be there in the contract
Proposals and presentations
8 suppliers submitted response to RFQ and a self
evaluation checklist.
Functionality checklist evaluated quantitatively by
Harley Davidson to determine functionality fit.
Each member viewed all proposals.
Well documented evaluation based on
 Specifications offered
 Strengths and weaknesses
 Critical requirements
Presentations attended by SiL’K team and IT Specialists.
Short-listing
Evaluation of combination of written proposal,
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.
 Ten scenarios based on process and technology
requirements created for demonstrations.
Provider 1
Positives Negatives
1. Very attentive to details and people dynamics 1. Package did not provide
like representatives asked appropriate questions. “web enablement”
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
Provider 2
Positives
1. Major ERP Supplier widely admired in
the industry.
2. Highest scoring on functionality
(98.7%)
3. Highly professional
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.
Negatives
1. Expensive products
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.
Provider 3
Positives Negatives
1. Engaged by Harley Davidson to 1. Proposal not according to the RFQ.
provide systems in a different functional
area.
2. High score on self evaluation 2. Bad initial presentation.
checklist (96.8%)
3. Potential political and economic 3. Did not demonstrate much
advantages as Harley-Davidson was functionality in first presentation.
already associated with this supplier.
4. Good reviews for ERP packages in the 4. Low rating on technical approach.
press.
5. Highly competitive software + Price
advantages.
6. Integration advantages.