【正文】 lowest total systems cost using value chain perspectives ?Focus driven by internal incentives/ transfer prices ?Separate product design ?Joint product design and cross functional participation ?Joint product design often at odds VMR VMRs can exceed the value of both traditional contracts as well as vertical integration. Strategic Purchasing Options 7 High Potential High Low High Low Purchasing volume (relative to total supplier sales) Valueadded / engineered level ?Product redesign ?Material substitution ?Product redesign ?Material substitution ?Volume discount ?System cost improvement Moderate Potential ?Volume discount ?Some system cost No / Little opportunity (need to cluster) VMRs are most appropriate where high volume and significant value added occurs. Medium/low potential Where Are VMRs Appropriate? 8 ?Large dollar purchase ?High level of valueadded cost in product ?Fragmentation across many divisions and suppliers ?Client represents significant part of industry output ?Industry petitive intensity high: –capacity utilization dropping –consolidation in progress –many new plants looking for volume –historical industry price umbrellas VMRs are most effective in large dollar, high value added products. In Which Categories Are VMRs Most Effective? 9 Consolidate volume in longterm partnership Increased pace of innovation leads to strategic benefits for both Ensures continued supply for buyer and capacity utilization for supplier Commitment and scale justifies joint investment in cost savings and RD/technology Joint efforts lead to systemwide benefits for both Added value leads to more reasons to collaborate A successful VMR will continue to create value as the relationship progresses. Value Cycle 10 VMRs create value for the buyer. ?Higher quality and fewer rejects ?Superior service ?Partner in joint system cost reduction ?Innovation ?Technological expertise –package performance improvements –spec consolidation –product redesign and materials substitution ?Pricing mensurate with larger, longer volume mitments ?Commitment to continuous improvement of the partnership Value Of VMRs— Buyer 11 VMRs create value for suppliers. ?Larger volumes in fewer items –longer run lengths and fewer setups –higher capacity utilization –learning curve benefits ?Stable long term demand ?Sharing in buyer’s strong mitment to future growth ?Partner in joint system cost reduction ?Resources and stability to invest in technology ?Commitment to continuous improvement of the partnership Value Of VMRs— Supplier 12 Lab SuppliesMedical SuppliesFlexiblePackagingGasesPunchesand DyesDrinksPackagingOffice SuppliesSBS FoldingCartonsElectricalSuppliesRigid InjectionMolded PlasticProductsCorrugatedBoxesFreightFlex PackagingThermoformedPartsMotorsAutomotivePartsMolded PlasticBottlesPower EquipmentProductsRecycledPaperboardCartonsBrickGlassOils and LubesChemicalsDextroseCoalBicycle PartsAdhesivesResins47%37%33% 33%30% 30%27%25%22% 22%19% 19%18%17%16%15% 15%13%12% 12%11%10% 10%9%8%7% 7%0%10%20%30%40%50%Cost Savings as a Percentage of SpendingVMRs have averaged 15% to 20% cost savings. Average Range Bain Experience in VMRs 13 Although the value managed relationship can be sophisticated and plex, the results are quantifiable and simple. ?100% of volume with one supplier for three years ?Up front price reduction of 7% ?Guaranteed % recurrent savings within three years ?Costbased indexed pricing over time ?50/50 savings sharing ?Penalties and inspections builtin ?Etc. VMR Sample Agreement 14 ?VMR Concept ?VMR Key Success Factors ?VMR Sources Of Value ?Bain VMR Process ?Example ?Key Takeaways Agenda 15 Pa r t ne r s hi p N ot M eetin g E x pect at i onsP artner s hi p M eetin g E x pect at i onsPa r tn er s hi p Ex c ee di ng E x pect at i ons 0%20%40%60%80%100%Total PartnershipsOver one half of existing partnerships do not meet expectations. This reality increases the need to understand and focus on the key success factors Partnerships Expectations 16 Strategy, anization and process must be in place in order to ensure VMR success. ?Clarity of and agreement on strategy and goals Strategy ?Appropriate level of involvement in and across anizations Organization ?Detailed and structured process for identifying and implementing opportunities Process Key Success Factors 17 Long term relationships focused on total value are critical strategic issues that must be clearly articulated. ?VMRs pursued only where appropriate ?True supplier partnerships –longterm relationships with one or few suppliers –relationships at all anizational levels –extensive twoway information sharing –sharing of all savings –willing to address inherent risks ?Focus on total