Supplier Relationship Management
How to Maximize Vendor Value and Opportunity
(Sprache: Englisch)
There s a new buzz phrase in the air: Supplier Relationship Management (SRM). Corporate executives know it s necessary, but there s only one problem. Nobody yet knows how to do it. Or they think it s all about bashing your vendors over the head until they...
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There s a new buzz phrase in the air: Supplier Relationship Management (SRM). Corporate executives know it s necessary, but there s only one problem. Nobody yet knows how to do it. Or they think it s all about bashing your vendors over the head until they reduce the price another 4%. Supplier Relationship Management: How to Maximize Vendor Value and Opportunity changes all that. Containing the best and most innovative advice from the operations and procurement experts at consultant AT Kearney, this book shows that SRM is at root a strategic discussion requiring cross-functional interaction and internal alignment at the highest levels. It requires an honest appraisal of the value that suppliers now bring to your firm, as well as their potential value. It then requires a frank and constructive business-to-business dialogue about how to improve the relationship. When this happens, a company reaps myriad benefits, ranging from new opportunity to added value to competitive advantage and, quite likely, to overall (and sometimes substantial) cost reductions.
This book shows the most concrete methods you can use today to:
- Identify value-adding opportunities in the supply chain
- Work closely with suppliers to maximize the benefits
- Work the "Critical Cluster" of suppliers, where the greatest opportunity for advantage lies
- Review suppliers to encourage constant gains in quality and cost
- Turn your SRM strategy into a major competitive advantage
Supplier Relationship Management introduces and explains the Supplier Interaction Model, a key tool that will help you get the most from your supplier relationships. It segments the supplier universe into nine categories, from those you want to run away from fast to those so good and so useful to your organization that it can make sense to invest in them directly. Numerous case studies show how to apply the principles to your situation.
... mehr
Supplier Relationship Management burns off the fog that has surrounded the procurement process for far too long. It is the definitive guide for business executives who want to get the maximum benefits from suppliers and gain very real advantages over competitors.
Supplier Relationship Management burns off the fog that has surrounded the procurement process for far too long. It is the definitive guide for business executives who want to get the maximum benefits from suppliers and gain very real advantages over competitors.
... weniger
There's a new buzz phrase in the air: Supplier Relationship Management (SRM). Corporate executives know it's necessary, but there's only one problem. Nobody yet knows how to do it. Or they think it's all about bashing your vendors over the head until they reduce the price another 4%. Supplier Relationship Management: How to Maximize Vendor Value and Opportunity changes all that.
Containing the best and most innovative advice from the operations and procurement experts at consultant AT Kearney, this book shows that SRM is at root a strategic discussion requiring cross-functional interaction and internal alignment at the highest levels. It requires an honest appraisal of the value that suppliers now bring to your firm, as well as their potential value. It then requires a frank and constructive business-to-business dialogue. When this happens, a company reaps myriad benefits, ranging from new opportunity to added value to competitive advantage-and, quite likely, to overall (and sometimes substantial) cost reductions.
This book shows the most concrete methods you can use today to:
- Analyze and identify value-adding opportunities in the supply chain
- Work closely with suppliers to maximize the benefits
- Work the "crucial cluster" where the greatest opportunity for improvement lies
- "Review" suppliers to encourage constant gains in quality and cost
- Save money
But it takes work to get there. The CEO and other C-level executives, for example, sometimes unwittingly sabotage the efforts made by procurement and operations people to optimize intercompany interaction and gain the most benefits in working with vendors for the long term. And chief procurement officers and procurement personnel aren't blameless, either. The company sees them-and often they see themselves-as the "price reduction guys." But, instead of simply playing vendors off one another or pushing them as far as they will go, people working in the trenches with suppliers can provide many opportunities to obtain more value from vendors in a variety of ways beyond price. And in doing so, they can turn the procurement department into a major competitive advantage for the company.
Supplier Relationship Management also introduces and explains the Supplier Interaction Model, a key tool that will help you get the most from your supplier relationships. It segments the supplier universe into 9 categories, from those you want to run away from fast to those so good and so useful to your organization that it can make sense to invest in them directly. Numerous case studies show how to apply the principles to your situation.
Managing Supplier Relationships burns off the fog that has surrounded the procurement process for far too long. It is the definitive guide for business executives who want to get the maximum benefits from suppliers and gain very real advantages-often invisible from the outside-over competitors.
Containing the best and most innovative advice from the operations and procurement experts at consultant AT Kearney, this book shows that SRM is at root a strategic discussion requiring cross-functional interaction and internal alignment at the highest levels. It requires an honest appraisal of the value that suppliers now bring to your firm, as well as their potential value. It then requires a frank and constructive business-to-business dialogue. When this happens, a company reaps myriad benefits, ranging from new opportunity to added value to competitive advantage-and, quite likely, to overall (and sometimes substantial) cost reductions.
This book shows the most concrete methods you can use today to:
- Analyze and identify value-adding opportunities in the supply chain
- Work closely with suppliers to maximize the benefits
- Work the "crucial cluster" where the greatest opportunity for improvement lies
- "Review" suppliers to encourage constant gains in quality and cost
- Save money
But it takes work to get there. The CEO and other C-level executives, for example, sometimes unwittingly sabotage the efforts made by procurement and operations people to optimize intercompany interaction and gain the most benefits in working with vendors for the long term. And chief procurement officers and procurement personnel aren't blameless, either. The company sees them-and often they see themselves-as the "price reduction guys." But, instead of simply playing vendors off one another or pushing them as far as they will go, people working in the trenches with suppliers can provide many opportunities to obtain more value from vendors in a variety of ways beyond price. And in doing so, they can turn the procurement department into a major competitive advantage for the company.
Supplier Relationship Management also introduces and explains the Supplier Interaction Model, a key tool that will help you get the most from your supplier relationships. It segments the supplier universe into 9 categories, from those you want to run away from fast to those so good and so useful to your organization that it can make sense to invest in them directly. Numerous case studies show how to apply the principles to your situation.
Managing Supplier Relationships burns off the fog that has surrounded the procurement process for far too long. It is the definitive guide for business executives who want to get the maximum benefits from suppliers and gain very real advantages-often invisible from the outside-over competitors.
Inhaltsverzeichnis zu „Supplier Relationship Management “
Chapter 1: Supplier Management Failures- Huge focus on cost reduction by encouraging competition among suppliers, managing to the budget, and practicing a lack of transparency
- Procurement too focused on "managing categories"
- Why it's difficult to manage suppliers: you need cross-functional, cross-team coordination, and senior executive alignment. But it can and must be done.
- Why it's important to look to suppliers for ideas and best practices
- The big challenge now: How to manage suppliers in a structured and entrepreneurial way while putting procurement into the driver's seat
Chapter 2: Supplier Relationship Management: A Myth?
- Everyone talks about SRM, but hardly anyone has ever seen it
- The meaning of the term SRM is unclear to many
- Problems: Since SRM has not been put to use effectively, bad things are happening:
- Big investments in meaningless procedures
- Procurement goes it alone and to the detriment of the organization
- Silo thinking across functions
- Chief executive interactions with supplier CEOs often counterproductive
- Isolated cases of success: Where SRM has been done well but not on a systematic, repeatable basis
- SRM today is like strategic sourcing before the transformative "7 steps"
- SRM encompasses everything that needs to be done in order to get the maximum benefit (not just savings!) out of a supplier, and this book will show how.
Chapter 3: Understand the Foundation of SRM
- Do not equate procurement with just reducing costs
- Summary findings of our CPO 2020 survey
- Externally, procurement must prepare for discontinuities in the market, build key capabilities at suppliers, and help suppliers to evolve
- Internally, procurement needs to embrace business need, develop people, and transform itself
- CPOs need to go beyond just a 'strategic' procurement-focused path and follow instead a holistic, end-to-end,
... mehr
business-focused path
- Otherwise, procurement is all about category cost reduction
- Better practices:
- Using assessments to focus on a procurement operating model (to be introduced), visibility in spending, and sourcing cost reduction opportunities
- Using sourcing to reduce costs, focus spend on best suppliers, and expand influence: Using a chessboard approach and advanced analytics to enhance benefits
- Supplier relationship management is all about measuring current performance, identifying potential value, and managing supplier interaction accordingly
Chapter 4: Tapping into Supplier Energy
- The key for success is to take a business-focused approach to tap into supplier energy by asking of each value chain:
- What combination of value is needed between innovation, cost, and risk management, and in which parts of the value chain? Which supplier interaction models are needed based on value and performance?
- How do you manage suppliers?
- How do you achieve results?
- Many businesses label vendors as 'strategic' when in reality they are transactional. A robust approach to the question of value and performance is essential.
- A common pitfall to avoid is to take a functional perspective rather than an enterprisewide approach to these questions.
Chapter 5: Introducing the Supplier Interaction Model
- An explanation of why value and performance need to be the key drivers of managing interactions
- Deep dive into measuring current supplier performance
- Deep dive into measuring supplier energy/value potential
- Managing risk in supplier interaction models
- Working with the supplier interaction model
- The nine supplier-management strategies
- The three main categories of suppliers:
- Problem children
- Run-of-the-mill suppliers
- Crucial cluster
Chapter 6: 'Problem Children': Addressing Problematic Supplier Relationships
- Challenge: Decide to replace or improve.
- Replace. Phase out supplier without hesitation
- Concept
- Case example
- Improve. Provided there is a positive business case, assist supplier in fixing shortcomings
- Concept
- Case example
- Bail-Out. Dedicate rapid intervention force to secure supply
- Concept
- Case example
- Turning a bailed-out vendor into a strategic vendor
Chapter 7: Run-of-the-Mill Suppliers: Reaping the Benefits from Supplier Relationships That Are Not Strategic
- These are the classic, transactional supplier relationships that will probably never be partnerships but nevertheless need careful and nuanced management.
- Harvest. Maximize the value received from supplier without committing future business
- Concept
- Case example
- Develop. Commit limited resources to get supplier ready for business
- Concept
- Case example
- Sustain. Monitor supplier performance and guide measures taken by supplier
- Concept
- Case example
Chapter 8: The Crucial Cluster: Getting the Greatest Value from Strategic Relationships
- This is the interesting place to dwell in the model: the cluster of Align, Co-invest, and Partner (the 'Crucial Cluster'), because these are the areas where a business will get the most innovation and risk mitigation. The secret sauce to make this work:
- Improve trust by taking trust off the critical path, and allowing the relationship to deepen and evolve ('stepping stones')
- Use third parties who can be helpful by providing clean-room approaches
- Apply the Supplier Interaction Model in a transparent way to engender trust with the suppliers in the 'Crucial Cluster'
- Align. Jointly develop a technology and commercial roadmap
- Concept
- Case example
- Co-invest. Define joint objective and commit supplier and company resources
- Concept
- Case example
- Partner. Enter a multi-year exclusive relationship with the objective to shape the market
- Concept
- Enablers
- Stakeholder alignment (often the CEO and top executives do whatever they want and don't align with procurement at all)
- Contractual agreements (often companies have a one-size-fits-all contract that is not optimal)
- Incentive models (often every supplier gets paid based on units shipped; there are smarter ways)
- Performance review (how to turn the business reviews from a ritual to something meaningful).
- Case example
Chapter 9: Putting Supplier Interaction Models to Work
- Why procurement has the right people to orchestrate this
- Procurement brings enterprisewide transparency
- Procurement brings checks and balances
- Procurement did it before with sourcing!
- How to get it done
- How to ignite the right mindset within procurement
- How to create momentum in the wider organization
- How to get started
- How to make it sustainable
Chapter 10: Outlook for Supplier Management
- Final sets of insights and show why this really is the future
- CPO 2020 initial findings
Appendix
- Checklists
- Templates
- Resources
- Otherwise, procurement is all about category cost reduction
- Better practices:
- Using assessments to focus on a procurement operating model (to be introduced), visibility in spending, and sourcing cost reduction opportunities
- Using sourcing to reduce costs, focus spend on best suppliers, and expand influence: Using a chessboard approach and advanced analytics to enhance benefits
- Supplier relationship management is all about measuring current performance, identifying potential value, and managing supplier interaction accordingly
Chapter 4: Tapping into Supplier Energy
- The key for success is to take a business-focused approach to tap into supplier energy by asking of each value chain:
- What combination of value is needed between innovation, cost, and risk management, and in which parts of the value chain? Which supplier interaction models are needed based on value and performance?
- How do you manage suppliers?
- How do you achieve results?
- Many businesses label vendors as 'strategic' when in reality they are transactional. A robust approach to the question of value and performance is essential.
- A common pitfall to avoid is to take a functional perspective rather than an enterprisewide approach to these questions.
Chapter 5: Introducing the Supplier Interaction Model
- An explanation of why value and performance need to be the key drivers of managing interactions
- Deep dive into measuring current supplier performance
- Deep dive into measuring supplier energy/value potential
- Managing risk in supplier interaction models
- Working with the supplier interaction model
- The nine supplier-management strategies
- The three main categories of suppliers:
- Problem children
- Run-of-the-mill suppliers
- Crucial cluster
Chapter 6: 'Problem Children': Addressing Problematic Supplier Relationships
- Challenge: Decide to replace or improve.
- Replace. Phase out supplier without hesitation
- Concept
- Case example
- Improve. Provided there is a positive business case, assist supplier in fixing shortcomings
- Concept
- Case example
- Bail-Out. Dedicate rapid intervention force to secure supply
- Concept
- Case example
- Turning a bailed-out vendor into a strategic vendor
Chapter 7: Run-of-the-Mill Suppliers: Reaping the Benefits from Supplier Relationships That Are Not Strategic
- These are the classic, transactional supplier relationships that will probably never be partnerships but nevertheless need careful and nuanced management.
- Harvest. Maximize the value received from supplier without committing future business
- Concept
- Case example
- Develop. Commit limited resources to get supplier ready for business
- Concept
- Case example
- Sustain. Monitor supplier performance and guide measures taken by supplier
- Concept
- Case example
Chapter 8: The Crucial Cluster: Getting the Greatest Value from Strategic Relationships
- This is the interesting place to dwell in the model: the cluster of Align, Co-invest, and Partner (the 'Crucial Cluster'), because these are the areas where a business will get the most innovation and risk mitigation. The secret sauce to make this work:
- Improve trust by taking trust off the critical path, and allowing the relationship to deepen and evolve ('stepping stones')
- Use third parties who can be helpful by providing clean-room approaches
- Apply the Supplier Interaction Model in a transparent way to engender trust with the suppliers in the 'Crucial Cluster'
- Align. Jointly develop a technology and commercial roadmap
- Concept
- Case example
- Co-invest. Define joint objective and commit supplier and company resources
- Concept
- Case example
- Partner. Enter a multi-year exclusive relationship with the objective to shape the market
- Concept
- Enablers
- Stakeholder alignment (often the CEO and top executives do whatever they want and don't align with procurement at all)
- Contractual agreements (often companies have a one-size-fits-all contract that is not optimal)
- Incentive models (often every supplier gets paid based on units shipped; there are smarter ways)
- Performance review (how to turn the business reviews from a ritual to something meaningful).
- Case example
Chapter 9: Putting Supplier Interaction Models to Work
- Why procurement has the right people to orchestrate this
- Procurement brings enterprisewide transparency
- Procurement brings checks and balances
- Procurement did it before with sourcing!
- How to get it done
- How to ignite the right mindset within procurement
- How to create momentum in the wider organization
- How to get started
- How to make it sustainable
Chapter 10: Outlook for Supplier Management
- Final sets of insights and show why this really is the future
- CPO 2020 initial findings
Appendix
- Checklists
- Templates
- Resources
... weniger
Autoren-Porträt von Christian Schuh
Stephen Easton leads the A.T. Kearney procurement team in the UK, and he is based in London. He joined A.T Kearney 14 years ago, focusing on working with clients to improve the effectiveness of their external procurement activity. He has supported a number of both private and public sector clients to achieve significant and sustained financial results. Stephen has an MBA from Cornell University and a first degree in Politics, Philosophy, and Economics from the University of Oxford. He lives in Surrey, southwest of London.
Bibliographische Angaben
- Autor: Christian Schuh
- 2015, X, 192 Seiten, Masse: 15,2 x 22,9 cm, Kartoniert (TB), Englisch
- Verlag: Springer, Berlin
- ISBN-10: 1430262591
- ISBN-13: 9781430262596
- Erscheinungsdatum: 14.06.2014
Sprache:
Englisch
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