【正文】 tion of new technology, etc. Tracking 49 ?VMR Concept ?VMR Key Success Factors ?VMR Sources Of Value ?Bain VMR Process ?Example ?Key Takeaways Agenda 50 ?Client is large conglomerate producing 15 major product lines ?Current relationship with suppliers is traditional and somewhat adversarial at times ?All data and vendors have been disguised, however this is an actual Bain client and case ?Product A is called widgets throughout the example –widget SKUs are called red, blue and green Context: VMR Example 51 EXAMPLE Identify VMR Opportunities Understand Industry Cost Structure Select VMR Candidates Obtain Top Management Commitment Identify Specific Cost Reduction Opportunities Implement VMR Opportunities Track VMR Savings VMR Process 52 0%25%50%0% 5% 10%Pr od uc t EPr od uc t HPr odu c t IP r o du c t KP r odu c t LP ro d u c tCP ro d u c tFP ro d u c tGP rod uc tMP rod uc tBPr oduc tDPr oduc tNPr oduc tOPr od uc t A( W id ge t s )P rod uc tJValueAdded as a Percentage of SalesP u rc h a s e s a s a P e r c e n t ag e o f t h e To t a l Ma rk e t fo r E a c h P r o d u ctUpon evaluation of ABC39。s product purchases, Product A is the most attractive VMR opportunity. EXAMPLE ABC Purchased Products ABC Company Purchasing Category Priority 53 Product category A has the most supplier and client support. Product Executive Commitment Corporate Willingness to Product Change Ranking Supplier Commitment Supplier Cooperation Product Category 1 ? Product A (Widgets) 2 ? Product D EXAMPLE 3 ? Product B 4 ? Product C Purchasing Category Selection 54 EXAMPLE Identify VMR Opportunities Understand Industry Cost Structure Select VMR Candidates Obtain Top Management Commitment Identify Specific Cost Reduction Opportunities Implement VMR Opportunities Track VMR Savings VMR Process 55 Market Trends Market Overview ? $ custom widget market ? 7% industry growth rate ? Highly fragmented market – largest 15 vendors prise 60% ? Suppliers tend towards materials specialization – secondary materials often outsourced Customer/Supplier Relationships ? Industrywide, close retailersupplier partnerships are not mon ? However, all suppliers surveyed have had some partnership experience examples include: – volume driven price discounts – joint RD/product design – elimination of duplicate processes ? Supplier trends – consolidation – movement to onestop shops – provision of additional services ? Customer trends – strong price focus – shortterm contract mitments – movement to multimaterial fixtures Supplier Economics ? Variable costs represent 66% of total supplier costs ? Raw materials costs represent 40% of total supplier’s costs ? Custom suppliers achieve 5% EBIT margins on average, but significant ranges exists ? Suppliers surveyed reinvest 5% of annual revenues ? Opportunity exists for operational improvement – operations are not highly automated – not fully leveraging materials purchasing across divisions or customers EXAMPLE Widget Industry Overview 56 C ust om W id getsStand ard W id getsO therT op 11 15 Supp l i er sTop 61 0 Su ppl ie rsT op 5 Su ppl ie rsNMLKJIHGFEDCBAAll W id gets Tot al C ust om W id gets T op 15 C us tom W id get Sup pl ie rs0%20%40%60%80%100%Percent of Total Sales (Billions of Dollars)The custom widget market is highly fragmented with the top 15 suppliers prising approximately 60% of the $ total market. EXAMPLE . Widget Market 57 O therLJIHGFEDCBAO therHGFEDCBAO therGFEDCBAR ed W id get M an uf ac tur ers Blu e W id get M an uf ac tur ers O ther W id get M an uf ac tur ers0%20%40%60%80%100%Percent of TotalThe custom widget market is further fragmented by color. EXAMPLE . Custom Widget Market by Color 58 EXAMPLE Identify VMR Opportunities Understand Industry Cost Structure Select VMR Candidates Obtain Top Management Commitment Identify Specific Cost Reduction Opportunities Implement VMR Opportunities Track VMR Savings VMR Process 59 1997 Annual Revenues: Business Strategy Focus: Primary Color: Customer Concentration (Percent of Sales to Top Five Customers): Average Capacity Utilization: Experience with Client: Widget manufacturers differ significantly in terms of size and capabilities. D ? Volume ? Red, blue ? 60% ? 60% ? Limited ? $60M B ? Customization ? Blue ? N/A ? 80% ? No ? $80M A ? Onestop shopping ? Blue ? 40% ? 70% ? Yes ? $100M C ? Onestop shopping ? Red, blue ? 33% ? 75% ? No ? $75M E ? Low cost widgets ? Red ? 42% ? 50% ? Yes ? $50M EXAMPLE Supplier Profiles 60 Most players in the custom widget industry tend to specialize in red or blue, many often outsource the secondary color. O th erBlu eR edG r eenBlu eR edBlu eR edO th erG re enBlu eR edO t herBlu eR edOt herG r eenBlu eR edG r eenBlu eR edO th erG r eenBlu eR edO t herBlu eR e dA B C D E F G H I0%20%40%60%80%10 0%Percent of Sales Volume by Material TypeEXAMPLE Supplier Materials Focus 61 M ateri al sF r in ge B ene f itsP ay r ol l T ax esD ir ec t Lab or /M anu f actu r in g W age sFri n g eB e n ef i t sP ay r ollT ax esIndirect Labor / Ma