L5

Front 1

What is the purpose of Persson & Håkansson's article?

Back 1

It discusses supplier segmentation, questions that the type of relationship is determined by the purchasing situation, supply risk and importance of the purpose and instead argues that collaboration can be a strong strategy in all segments.

Front 2

How does it question Krajlic (1983)?

Back 2

Wants to go from a more static model to a more dynamic model of supply segmentation.

Front 3

Three case studies to back up this view:

Back 3

1. Non-critical segment

2. Critical segment

3. Leverage segment

Front 4

How can collaboration be a good strategy in the non-critical segment?

Back 4

In the case, the price of the transaction cost was much higher than the price of theproduct itself.

Solution: Concentrating the purchase to few suppliers, with which onecollaborates to reduce costs. Collaboration efforts included moving activities from thebuyer to the supplier and better coordination between parties to reduce transactioncosts.

Front 5

How can collaboration be a good strategy in the critical segment?

Back 5

In this case, six producers of petroleum all had their own expensive production unitswith high maintenance costs, and were also considered to be small (i.e. insignificant)customers by the few international suppliers. Solution: An establishment of a jointequipment pool. This resulted in better maintenance and therefore reduced the numberof break downs and need of spare parts. The pool is also now the second largest buyerof equipment in Europe and has therefore become a key customer for the suppliers.

Front 6

How can collaboration be a good strategy in the critical segment?

Back 6

After several mergers and acquisitions, the company had difficulties in realizing thesynergies when integrating the operating units. From the distributors view, thecompany represented a potential interesting volume, but linked to high administrationcosts due to the disintegration. Solution: Information and logistics sharing thatbecame the foundation for the development of both new services provided by thecompany (probably leading to more business), and an extended role in creatingdemand for specific components (which reduces unit costs).

Front 7

How can advantages be created through interdependencies?

Back 7

Gains in effectiveness can be achieved through changes in utilizations of resourcecombinations.

E.g. when major parts of the resources are external, innovation anddevelopment will be based and dependent on how external resources can be related tothe internal ones, and this calls for co-operation.

>>> Exploiting interdependencies is the goal to create a competitive advantage.

Front 8

What types of interdependencies and relationships are identified?

Back 8

1. Pooled interdependence i.e. mediating relationship

2. Serial interdependencies i.e. a linked or streamlined relationship

3. Reciprocal interdependency i.e. problem solving relationship

Front 9

1. Pooled interdependence i.e. mediating relationship

Back 9

Both companies are related to a third activity, or are sharing a common resource andare therefore indirectly dependent. E.g. shared resources can result in economies ofscale.

Front 10

2. Serial interdependencies i.e. a linked or streamlined relationship

Back 10

A situation where one output is the other ones input. By adjusting and coordinatingthese activities, one can reduce costs and increase services in relation to specificcounterparts.

Front 11

3. Reciprocal interdependency i.e. problem solving relationship

Back 11

Mutual exchange of inputs and outputs between the two parties e.g. developmentprojects involving several companies that require mutual learning and continuousexchange of information.

Front 12

Summing up.

Back 12

1. relationship/situation should not be taken as given. All the examplesinvolved making the buyer more attractive to the supplier, and the supplier moreattractive to the buyer.

2. The intensity is a choice that should depend on a balancebetween the potentials of the relationship and the investments made. This alsoinvolves a change in buying strategy from moving to fewer suppliers as well as givingthe supplier more responsibility.

Front 13

Which are the 3 types of supplier relationships preseneted and what do they depend on? ( 3 äckliga tabeller)

Back 13

dddd

Front 14

What is the aim of Liker & choi?

Back 14

The author suggests us to follow the Japanese model of building supplier kieretsu: close-knit network of vendors that continuouslylearn, improve, and prosper along with their parent companies.

Front 15

How does one create these deep relationships?

Back 15

The supplier partnering hierarchy

1. Understand how your supplier work

2. Turn supplier rivalry into opportunity

3. Supervise your suppliers

4. Develop suppliers' technical capabilities

5. Share information intensively but selectively.

6. Conduct joint improvement activities.

Front 16

Understanding how suppliers work?

Back 16

- Learning about suppliers' business

- Go see how suppliers work

- Respect suppliers' capabilities

- Commit to coprosperity

Honda & Toyota take time to know suppliers, almost as well as the suppliers know themselves. Costly, time consuming, but valuable in the long run.

Front 17

Turn supplier rivalry into opportunity?

Back 17

- Source each component from 2 or 3 vendors

- Create compatible production philosophies and systems

- set up joint ventures with existing suppliers yo transfer knowledge and maintain control

T&H: encourage suppliers to compete, e.g. encourage car manufacturers to create design for car model, best design gets contract for the car model's entire life, as long as they perform well. Also, more frequently create rivalry among existing suppliers. Further, they spark competition where there is none.

Front 18

Supervise your suppliers

Back 18

- send monthly report cards to core suppliers

- provide immediate and constant feedback

- get senior managers involved in solving problems

Front 19

Develop suppliers' technical capabilities.

Back 19

- Build supplier problem solving skills

- Choose technically skilled suppliers

- Develope a common lexicon (language) (japaneese don't really give exact specifications, these can be create this type of "feel" in the tiers etc)

- sharpen core suppliers innovation capabilties

E.g. set up checklists for desired measurable characteristics for each component. If teh vendors can't measure sth, then the manufacturer can help them implement systems for doing so.

Front 20

Share information intensively but selectively?

Back 20

Sharing too much information with everyone ensures that no one will have the right information when needed.

- Set specific times, places and agendas for meetings.

- use rigid formats for sharing information.

- insist on accurate data collection

- share information in a structured new fashion.

Front 21

Conduct joint improvement activities?

Back 21

-exchange best practices with suppliers

- initiate kaizen projects at suppliers facilities

- set up supplier study groups

Ex. Suppliers increased productiviy (50%), quality with 30% and reduced costs with 7%. The cost reduction is shared btw honda and supplier 50-50.

Toyota- study teams (jishuken) with vendor engineers who go from plant to plant and improving suppliers processes. sharing info, best practices and concerns.

Front 22

What is Gereffi's article about?

Back 22

Build a theoretical framework to help explain governance patterns in global value chains. (what are global value chains?)

Front 23

Which three variables play a large role in determining how global value chains are governed and change?

Back 23

1. Complexity of transaction.

2. Ability to codify transactions.

3. The capabilities in the supply-base.

What is meant by that?

Front 24

Which 5 types of global value chain governance are found?

Back 24

1. Hierarchy

2. Captive

3. Relational

4. Modular

5. Market

They range from high to low levels of explicit coordination and power asymmetry.