Benchmarking Business Relationship Management “The Four ...

FSPF

BENCHMARKING BUSINESS RELATIONSHIP MANAGEMENT

Benchmarking Business Relationship Management "The Four Faces of Building Value with Major Suppliers"

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BENCHMARKING BUSINESS RELATIONSHIP MANAGEMENT

Benchmarking `best practice' ... central to emerging `next practice'

Leaders of the International Procurement Leadership Forum

Official Sponsor, 2008







henleymc.ac.uk

Support Partners of the Global Benchmarking Survey 2007



Examples of IPLF Participants, 2006 and 2007

FSPF 0608.ppt ? Future Purchasing, 2008.

Beam Global Spirits & Wine

Purchex

Defence Procurement Agency

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BENCHMARKING BUSINESS RELATIONSHIP MANAGEMENT

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Face 2: Different Types of Supplier Relationship Management

Face 3: Operationalising Strategic Supplier Relationship Management

Face 4: Leadership, People & Behavioural Implications

FSPF 0608.ppt ? Future Purchasing, 2008.

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BENCHMARKING BUSINESS RELATIONSHIP MANAGEMENT

One theme is the `hard drivers' of relationship management

10,000 individuals were contacted, with c. 1,000 survey responses and interviews

Sectoral Case Files

Retail & Consumer Brands

Different types of value map exist - some are explicit, most are not

Private Sector

Automotives

Aerospace

Pharmaceuticals Financial Services

FSPF 0608.ppt ? Future Purchasing, 2008.

Public Sector

Defence Procurement Agency

Financial Performance

? Cost management ? Margin management ? Capital productivity ? Derisking supply

Ways of Working

? Control and governance ? Strategic alignment ? Consistent ways of working ? Clear responsibilities

Service Efficiency

? Cost management ? Treasury funding ? Capital productivity ? De-risking the supply chain

Business Growth

? Revenue and innovation ? Operational excellence ? Customer response ? Reputation and CSR

Relationship Quality

? Business-to-business commitment ? Relationship trust and openness ? Day-to-day support ? Transparency and growth potential

Service Effectiveness

? Customer responsiveness ? Operational excellence ? Delivery and innovation ? Reputation enhancement

Public Sector

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BENCHMARKING BUSINESS RELATIONSHIP MANAGEMENT

Cost down and value up potential with strategic suppliers is 20% +

Survey respondents identified 23% incremental value across multiple factors

?Average spend 28.5m

?Average benefits available 6.6m

< 150m organisations

N = 227

15bn+ organisations

N = 152

Total 413,000m opportunity identified

by 816 survey respondents

151m - 1.5bn 1.5 bn - 15bn organisations organisations

?Average spend 260m

N = 221 N = 216

?Average benefits available 60m

?Average spend 7,600m ?Average benefits available 1,750m

?Average spend 2,600m ?Average benefits available 610m

1 Total cost reduction

2 Revenue generation

FSPF 0608.ppt ? Future Purchasing, 2008.

3 Product innovation

4 Process improvement

5 Quality levels

6 Service levels

7 Supply assurance

8 Speed to market

9 Supplier control

10 Relationship quality

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