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30 Cards in this Set
- Front
- Back
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Partnership |
a tailored business relationship based on mutual trust, openness, shared risk and shared reward that results in a business performance greater than would be achieved by two firms working together in the absence of partnership |
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types of relationships |
arms length type 1 type 2 type 3 joint ventures vertical integration |
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Why Partner? |
gain advantages of vertical integration while still maintaining organization iindependence take advantage of "best in class" expertise achieve service improvements gain operational efficiencies respond to competition |
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Partnership strategy |
partnerships are costly to implement not all relationships should be partnerships partnership strat should be driven by overall corporate strategy |
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Bottleneck |
Characteristics: low potential to add value few suppliers quality, service issues regulatory requirements non-standard specifications likely to stop production if not available High supply risk low potential to add value |
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leverage |
Characteristics: best value providers respond to price movement several suppliers potential disruption in replacement some differentiation in specifications low supply risk high potential to add value |
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strategic |
characteristics: long-term profitable growth critical to competitive advantage small number of suppliers difficulty of replacement unique specifications focus on development leading edge processes used high potential to add value high supply risk |
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routine |
characteristics: low potential to add value many suppliers standard specifications ease of replacement competitive pressure simple market management low potential to add value low supply risk |
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supply risk factors to consider |
product service quality social responsibility financial stability supplier's relationships with competitors complexity of specifications |
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potential to add value factors to consider |
innvoation and tech intellectual prop global presence cost mang volume/spend minority supply chain process integration attractiveness to customer access to assets and capabilities |
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bottleneck segmentation strat |
business objectives: remove risk and vulnerability ensure supply security and quality avoid any potential disruptions Result: Supply quality & continuity |
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routine segmentation strat |
business objectives: remove unnecessary complexity free up time for other work Result: Simplicity & Efficiency |
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strategic segmentation strat |
business objectives: manage risk and vulnerability maximize supply performance Develop preferential relationships have close supplier management result: Profitable long-term growth for both parties |
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leverage segmentation strat |
business objectives: obtain major cost savings maximize value create and harness market competition result: costs savings & value maximization |
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drivers |
compelling reasons to partner expected benefits from expanding relationship improved in assest/cost efficiencies improved customer service enhance marketing advantage profit growth/stability the stronger the drivers, the more chance of a successful partnership |
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facilitators |
supportive environmental factors that enhance partnership growth facilitators possible in all relationships: corporate compatibility compatible management philosophy and techniques a strong perspective of mutuality symmetry between the two parties |
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additional facilators |
strengthen the likelihood of success: shared competitors physical promiximity potential for exclusivity prior relationship experience shared end users |
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Components |
joint activities and processes that build and sustain the partnership managrial controllable elements of a partnership partnerships include components: planning joint operating controls communications risk/reward sharing trust and commitment financial investment |
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combination of drivers and facilitators |
determine the level of partnering |
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type 1 partnership |
components are present at a low level |
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type 2 partnership |
components are present at a medium level |
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type 3 partnership |
components are present at a high level |
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partnership component |
style level content |
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low |
on ad hoc basis focus on projects or taks sharing of existing plans |
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medium |
regularly scheduled focus on process performed jointly eliminating conflicts in strats |
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high |
systematic: both scheduled and ad hoc focus is on relationship preformed jointly and at multiple levels top mang objective is to mesh strats each part participates in others business plans |
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outcomes |
the extent to which performance meets expectations factors reflecting performance of partnerhship global: enhancement of profits process: improved service reduced costs compet advant: positioning share knowledge |
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partnerships summary |
not approp for all situations guidelines exist different setting require diff types of partnering approp partnership can improve perfromance for both require time and effort |
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Partnership model |
evaluate potential new partnership analyze a portfolio of relationships diagnose relationships increase specific performance aspects of relationships structured approach to relationship management |
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things to watch for in working through the model |
people have tendecny to want type 3 relationship marketing and sales reps on supplier side tend to rate things very positively on going relationship those involved tend to rate things lower than does management establish action plans (time frames and parties) for achieving drivers |
