【正文】 Service Supplier Commitment Magnitude of Cost Reduction Potential LongTerm Leadership Potential?Product/delivery/systems?Geographic coverage?Dedication/dependence?Interest in VMR?Systems economics?Flexibility of approach?Credibility of plan/resources?Technology?Scale?FinancialSupplier Evaluation43Value Managed RelationshipsPartnership Development ProcessIdentify VMR OpportunitiesUnderstand Industry Cost StructureSelect VMR CandidatesObtain Top Management CommitmentIdentify Specific CostReduction OpportunitiesImplement VMR OpportunitiesTrack VMR SavingsVMR Process44Value Managed RelationshipsImplementation?Set up partnership management structure and rolloutNegotiations?Share aggregate responsesSupplier Proposals Analysis?Receive responsesInitial Contact with Suppliers?Describe proposed relationship?Selection of supplier(s)?Comparative analysis?Elicit suppliers39。Sheila DubinValue Managed RelationshipsDecember 1998Author:1Value Managed RelationshipsAfter pleting this module, you will be able to: ?Understand VMR concept and application?Articulate types of cost savings opportunities created by VMRs?Use the Bain framework to conduct a VMR?Refer to real examples of Bain’s VMR process and successValue Managed Relationships Objectives2Value Managed Relationships ?VMR Concept?VMR Key Success Factors?VMR Sources Of Value?Bain VMR Process?Example?Key TakeawaysAgendaValue Managed Relationships A Value Managed Relationship (VMR) is a full partnership between a customer and a supplier.Its goal is to maximize quality and minimize total system costs of doing business through collaborative sharing of information and resources.A VMR creates a win/win relationship. VMR Definition4Value Managed Relationships“Partnership” True VMR Procurement StrategiesValue Managed RelationshipSole SourceVertical IntegrationCompetitive BidShortterm Contract / SpotLongterm ContractA VMR is one procurement strategy to maximize cost savings and strategic value.What is a VMR?5Value Managed Relationships ?A Value Managed Relationship can exceed the value potential of both vertical integration and traditionally negotiated arm39。s length transactions:– a consolidation of purchases to one or few suppliers who are capable of maintaining long term petitive economics, high quality and efficient delivery– participants must share single goal of achieving lowest industry systems cost– savings should be shared to provide mutual ongoing incentives to eliminate redundanciesA VMR, when appropriate, exceeds the value of all other types of relationships.How Does a VMR Work?6Value Managed Relationships?Fragmented supplier base, sporadic munication?Single or small number of suppliers, frequent munication?Inhouse supply, munication frequentTraditional Arms Length Approach Vertical Integration?Investments based upon manufacturer39。 attitudes on a partnership with the client?Train staff to manage process, expand to other areas?Identification of BDP and system cost reduction targets?Followup with plant tours, quality checks, etc.?Hand over category strategy and volume expectationsThe optimal partnership development process is explicit and clearly articulated.Partnership Development Process45Value Managed Relationships Number of Suppliers:Oligopoly Giant(s) and Many FragmentedSole Source Giant(s) and Few1530153025251Supplier Concentration:?~80% to 68 suppliers?Rest with 1020 suppliers?~80% to 1 or 2 suppliers?Rest with 1530 suppliers?Evenly among suppliers?~80% to 1 or 2 suppliers?Rest with 14 suppliers?100% to 1 supplier?Long term petitive bids?Short term petitive bids?VMR?Long term petitive bids?Short term petitive bids?VMR?Long term petitive bids?Short term petitive bids?VMR?Long term petitive bids?Short term petitive bids?VMR?Long term petitive bidsPotential Relationship Options:A range of supplier configuration options, should be evaluated.Supplier Configuration Alternatives46Value Managed RelationshipsPeople? Is senior management mitted to making this work?? Have all anizational, cultural, and skill changes been addressed? Are the incentives appropriate to ensure employee mitment?Operational Execution? What is the governance structure?? How is progress monitored? How will roadblocks be resolved?? Is there open sharing of required information?? Can all the information systems changes be identified and specified? How will switch disruptions be minimized?Partner Selection? What is the optimal number of suppliers?? Do we really understand supplier39。s product purchases, Product A is the most attractive VMR opportunity.EXAMPLEABC Purchased ProductsABC Company Purchasing Category Priority53Value Managed RelationshipsProduct category A has the most supplier and client support.Product Executive CommitmentCorporate Willingness to Product Change RankingSupplier CommitmentSupplier CooperationProduct Category1?Product A (Widgets)2?Product DEXAMPLE3?Product B4?Product CPurchasing Category Selection54Value Managed RelationshipsEXAMPLEIdentify VMR OpportunitiesUnderstand Industry Cost StructureSelect VMR CandidatesObtain Top Management CommitmentIdentify Specific CostReduction OpportunitiesImplement VMR OpportunitiesTrack VMR SavingsVMR Process55Value Managed RelationshipsMarket TrendsMarket Overview?$ custom widget market?7% industry growth rate?Highly fragmented market–largest 15 vendors prise 60%?Suppliers tend towards materials specialization–secondary materials