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28 March 2012
Todays agenda
1. 2. 3. 4. 5.
Introduction What is a customer of choice? Insights from the customer side Insights from the supplier side How to become a more attractive customer
OLLOWERS
LEADERS
OLLOWERS
LEADERS
Desired outcomes
Successful collaborative customer-supplier relationships are likely to include the following features: Compelling mix of hard and soft benefits (added value)
OLLOWERS
LEADERS
Strategic collaboration
To what extent are you working collaboratively with your strategic suppliers?
Always business as usual 13%
What form does this collaboration with your strategic suppliers take?
64%
Rarely 9%
Never 1%
Don't know 2%
OLLOWERS
44% 40%
Occasionally 36%
17%
16%
11%
10%
8%
LEADERS
Todays agenda
1. 2. 3. 4. 5.
Introduction What is a customer of choice? Insights from the customer side Insights from the supplier side How to become a more attractive customer
VALUE
Priority for scarce resources/ capacity Preferential pricing
LEADERS
LEADERS
LEADERS
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Strategic customer: strong relationship, future growth collaborate Star customer: high future growth potential develop Status customer: large volumes, stable margins maintain proactively Streamline customer: large volumes, low margins manage for cash
LEADERS
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12
= SRM
= KAM OLLOWERS
???
ALIGNMENT
LEADERS
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A customer of choice is an organisation that, through its practices and behaviours, consistently positions itself to receive preferential access to resources, ideas and innovations from its key suppliers that give it a competitive advantage.
LEADERS
What do you think?
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Todays agenda
1. 2. 3. 4. 5.
Introduction What is a customer of choice? Insights from the customer side Insights from the supplier side How to become a more attractive customer
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Less than 25% 26-50% 51-75% 76-99% All None Don't know 0% 5% 10% 1% 2% 11% 15% 20% 25% 13% 19%
28%
26%
LEADERS
30%
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LEADERS
None
Other
Source: State of Flux 2011 SRM survey
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Openness to ideas
Payment performance (eg, on time in full) Process alignment Cultural fit Quality of communications Access to/engagement with your executives Trustworthiness
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
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How often do you share financial savings derived from SRM activities with your suppliers?
Always 14% 8% 44% 35% 27% 28% 6% 18% 9% 11% 0% 10% Leaders 20% 30% 40% 50%
65% 63% 35% 39% 43% 39% 38% 30% 35% 27% 18% 20% 32% 40% 60% 80% 59% 54%
Occasionally
Rarely
Never
Dont know
Followers
Followers
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Supplier-driven innovation
How would you rate your organisation's ability to attract, evaluate and implement innovation proposals from your key suppliers? What, if any, are the major barriers for your organisation to attract, evaluate and implement supplier innovation proposals?
Very good 8%
No formal process in place Lack of time/resources Complexity of organisation Lack of clear ownership Good 38% Lack of internal communication/co-ordination Unwillingness to consider external ideas No major barriers Other 0% 14% 9% 7% 20% 32%
No opinion 23%
LEADERS
40%
60%
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Todays agenda
1. 2. 3. 4. 5.
Introduction What is a customer of choice? Insights from the customer side Insights from the supplier side How to become a more attractive customer
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LEADERS
22
LEADERS
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LEADERS
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LEADERS
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3.00
2.50 Payment
LEADERS
Communications
Collaboration
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Todays agenda
1. 2. 3. 4. 5.
Introduction What is a customer of choice? Insights from the customer side Insights from the supplier side How to become a more attractive customer
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Q&A discussion
Questions? Comments?
Geraint John Executive Consultant State of Flux geraint.john@stateofflux.co.uk www.stateofflux.co.uk/srm +44 (0)20 7842 0600
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