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SRM (L4M6), image, image, Benefits of Added Value Cashable savings or…
SRM (L4M6)
**Understanding processes and procedures for successful working with stakeholders
2.1. Analyse the purpose of organisational procedures and processes in sourcing goods and/or services
a. Achieving value for money
b. Supplier identification, assessment, and selection
c. Award stage – selection and awarding criteria
Private
Public
2.2. Compare team management techniques to ensure positive stakeholder relationships
e. Stages of team development – forming, storming, norming, performing
d. Cross-organisational team
c. Identifying conflict and coping processes
b. Overcoming resistance
a. Positive relationships through positive contributions
2.3. practical considerations of stakeholder management
f. Improving risk management and continuity of supply
e. Common metrics to drive change for both organisations
d. Knowledge transfer and access to innovation
c. Early supplier involvement
b. Reduce impact of price fluctuations
a. Accurate cost modelling
2.4. Identify the process for terminating stakeholder relationships
b. The process of termination
• Identify performance issues and contract management
• Obtain business approval to terminate
• Develop exit strategy
• Review market and qualify new supplier
• Give written notice of termination
• Manage exit and new supplier on-boarding
d. Legal considerations
e. Succession issues – continuity of supply
c. Relationship impacts – amicable v. hostile
a. Reasons for termination
1.The dynamics of relationships in supply chains
1.1 different types of commercial relationships
External
Advantage and Disadvantage
Internal
Advantage and Disadvantage
Relationship Spectrum
Types
characteristics
use
relationship life cycle
• On-boarding: what buyer does at this stage
• Qualification: what buyer does at this stage
• Segmentation and risk assessment: what buyer do
• Performance management: what buyer does
• Development and innovation: what buyer do
• Phase out: what buyer does
1.2. Appraise portfolio analysis techniques to assess relationship
a. Matrices to identify supply, supplier, and purchaser positioning
• Pareto analysis
• Kraljic’s model
b. Develop value-adding relationships with strategic suppliers
• Market management matrix
• Supplier preferencing matrix
c. Development of action plans
• Select the right type of relationship to develop with each supplier
• How to improve buyer’s attractiveness
1.3. Identify the competitive forces that impact on relationships
a. Sources of competitive advantages
• Cost leaderships: typical attributes
• Differentiation: typical attributes
• Focus: cost focus, differentiation focus
• Roles of procurement in each competitive strategy
• The value chain: primary and secondary/support activities
Other sources of Competitive advantage
Product and IP
Capital
Process and practice
Natural resource
Organization Culture and Structure
Technology
HRM, Staff and Skill
b. Porter’s Five Forces
c. STEEPLE analysis
1.4. Sources of added-value from supply chain
relationships
a. The link between relationships as a process and the achievement of added value outcomes
b. Sources of added value
c. The link between organisation in supply networks
Understanding the concept of partnering
3.1. Analyse the concept of partnering and where it is a suitable approach
a. The three types of partnering
b. Partnering versus ‘traditional’ contracting agreements
• Less contractual
• No defined end periods
• Joint performance measurement
• Greater levels of information sharing and transparency
• Shared costs and benefits
• No tender process or win-lose negotiations
• Early supplier involvement
c. The drivers for partnership sourcing
• Typical drivers for partnership sourcing
• The relationship between drivers, facilitators, and type of partnership
d. Advantages and disadvantages of partnership relationship
3.2. Appraise the process of partnership implementation
a. Identify items potentially suitable for partnership sourcing
b. Sell’ the philosophy to senior management and other functions of the organisation
• Sell the idea to senior management
• Sell the idea to the wider organisation
• Sell the idea to potential partner
• Processes that support selling the philosophy
c. Define the standard that potential partners will be expected to meet
• Commitment to total quality management
• Ability to apply the just in time method
• Ability to provide supplies locally and/or globally
• Willingness to take part in innovation programme
• Flexibility management
• Behaviours
d. Establish joint commitment to the partnership
e. Reviews and audit
3.3. Identify the reasons why partnership fail
e. Lack of value-added benefits
Selecting the wrong supplier or partner
Partners become complacent
Changes in the market eroded the value-added benefits
The relationship is not being effectively or actively managed
Unrealistic value-added benefits or expectations
f. Changes in the market (Steepled and Porters)
d. Poor planning
g. Corporate cultural differences
c. Lack of commitment
h. Logistics and distance barriers
b. Lack of senior management support and trust
a. Poor communication
Benefits of Added Value
Cashable savings or Cash avoidance
Competitive advantage
Risk Management
Improve business efficiency
CSR
2.1 The procurement and supply cycle
a. Positive relationships through positive contributions
b. Overcoming resistance
b. Overcoming resistance
c. Identifying conflict and coping processes
c. Identifying conflict and coping processes
e. Stages of team development – forming, storming, norming, performing
The 8-steps change model (Kotter)
Managing measurement and metrics
