Industrial Solutions - Why Supplier Diversity Is a Good Thing

“Shouldn’t we be past this by now?” We are nearly half way through 2014 now. One would think that the need for Supplier Diversity initiatives should be a thing of the past. Haven’t we, as a society, especially in the United States, figured out that what makes a person valuable is determined by what is in their head and their heart and not their ancestry or the color of their skin?

For the most part, we have come a long way over the past 150 years but recent scandals over the previous few weeks have shown us that there are still many out there that fail to acknowledge these simple truths:

1. We may not all look the same but we all love the same.  
2. We may not all come from the same place, but we all have the same basic priorities (providing for our families and making this world better).

The companies that choose to participate in Supplier Diversity are supporting and encouraging one of the greatest entrepreneurial encouragement initiatives this country has ever seen. What makes it special is the fact that real value and innovation are real drivers at work here. Go to a Supplier Diversity event and talk to the company owners and you will hear stories of the American Dream. The additional benefit of Supplier Diversity is being reminded that we all have struggles but when we work together, we do amazing things.

As the business world shows the positive side of working together, regardless of background or ethnicity or any other potentially divisive issue, the rest of the world will follow. Let’s no longer focus on what divides us, but rather, let’s make an effort to focus on uniting one another. Won’t it be wonderful when Supplier Diversity events are no longer needed? Until then, let’s press on and set good examples for the rest of the world to see. It is better to show than to tell. It is better to see than to hear. At Telamon, we want to the world to believe us so, we walk the talk. Come, follow us!

-John Weeks
Director of Sales
Industrial Solutions - Telamon Corporation

About Telamon Industrial Solutions:

Telamon Industrial Solutions provides Assembly, Kitting and Third Party Logistics (3PL) services in a culture of quality and efficiency that reduces our customer’s total cost of ownership using robust, unique design processes while creating a worry-free, cost effective purchasing experience.

Energy Solutions - Addressing Rising Energy Costs

As you may recall from Mike Morley’s blog on April 11, electricity cost has risen an average of 7.3% for the last seven (7) years: http://bit.ly/1nc01LB. The bigger question is: What is going to happen for the foreseeable future? According to several sources, (Edison Electric Institute, U.S. Energy Administration, Purdue University, and the L.A. Times) electric cost will rise by an average of 40% over the next eight (8) to ten (10) years.

Fixed budget agencies such as municipal governments, state-supported universities, K-12 public school corporations, and many hospitals will have to contend with these rising costs. We all know they simply cannot turn off the lights to reduce energy cost. We also can predict with certainty the state will not increase base budget dollars to offset the increased utility cost each year. Therefore, something has to give. If there is a set amount of money and energy cost rises, what options do they have? In our homes we can address this issue by reducing the number of times we go out to eat or go to the movies or fewer pizza deliveries, etc. etc.  

In governmental agencies these choices are much more impactful and can cause harm to the public:  Do they reduce public safety officers in order to leave the street lights on? Do I increase class size to air condition the school? Do I eliminate services and send patients to a different hospital? These are very difficult decisions for our elected and non-elected officials responsible for these agencies.   

At Telamon Energy Solutions, we are suggesting to these agencies to not wait but to address energy consumption now. We suggest they address this dilemma by first investigating energy savings options. We are offering to do an energy analysis for these clients. This analysis addresses many high energy users such as HVAC systems, hot water heaters, kitchen areas if they have them, and luminaries inside and outside. We then meet with the decision makers and suggest ways they can update equipment to reduce energy costs. We have seen in many instances payment for this new equipment can be paid via energy savings in the first 2 to 4 years of savings.  

We also do an analysis of using self-generated solar energy for a portion of their energy needs. The key here is to produce a portion of your energy needs on-site. Here is an example: The typical elementary school of 700 students burns about $100,000 of electricity per year. If you self-produced $40,000 of solar electricity on the roof of the school, you reduce your cost for electricity to $60,000 per year for 20 years (assuming no other changes). Even after eight (8) to ten (10) years when energy cost has risen 40%, your new adjusted cost goes to $84,000 still saving $56,000 per year ($60,000 X 1.4 compared to $100,000 X 1.4). The cost to produce this $40,000 of electricity varies by region but as Mike referenced in his April 11 blog, the cost to self-produce electricity is reducing to the point you can pay for your solar array in three (3) to five (5) years.

Telamon is excited to be able to provide these energy cost-saving options to cash-strapped governmental agencies to help find ways to prevent difficult decisions later.

-Bruce Breeden

Director Business Development

Telamon Energy Solutions

Business Process Solutions - Busines Process Outsourcing vs. Business Process Solutions

Many people have a bad taste in their mouth regarding the traditional business process outsourcing (BPO) model. This model is where a third party provides services on your behalf, typically off-site, on-shore, or off-shore. The value proposition is typically the same – we can cut your costs by over 50%. Sometimes the costs savings is all that clients look for in ways to survive. This model, over time, has led to many companies bringing back the very process they had originally outsourced. Why? There are several reasons below why organizations have reversed their outsourcing decision, including, but not limited to:

• Costs to manage the outsource company outweighed the savings
• Scalability of outsource partner was limited, savings made little impact or took too long to achieve 
• The standard overpromising and under-delivering the actual skill sets promoted 
• Process outsourced was a key client function, client satisfaction decreased 
• Corporate philosophy and vision of the two companies were not aligned

While many organizations are familiar with the traditional BPO model, many may not be aware there is a move towards business process solutions (BPS). You might ask – what is the difference? The chart below explains just a few of the differences:

 

BPO	BPS
Removes entire function(s) and/or processes completely from the organization.	Looks to integrate with the clients existing staff, becoming an extension of your existing business operations.
Removes Subject Matter Experts (SMEs).	SMEs are kept on-site, while lowering cost of transaction related, non-client activity off-site
No skill sets are retained for existing business unit.	Skill sets of existing staff are upgraded to more client focused activities.
Cost to manage is high due to entire process outsourced.  You spend a lot of time managing the vendor vs. reaping the savings.	Cost is proportion to the amount of work you assign. Workflow fluctuates with your business. You assign only what you need to.

While you may think BPO and BPS are the same, talk to any client of Telamon’s that has used our BPS services and you will find a scalable, true cost savings model that is sustainable. Many of our clients often tell us our model is refreshing because our focus is not solely on exchanging labor. At Telamon, we first look to automate any existing manual processes then provide the necessary resources, if required. Our “extension of your business office” approach allows our clients when to decide to outsource based on their schedule and provides instant scalability. They retain the SMEs and our people simply fill in the gaps. Call us today to find out how we can bring a refreshing outsourcing model to your organization.

-John Owen
VP of Sales 
Telamon Business Process Solutions
317-818-6697 
john.owen@telamon.com