Performance management

AU2789_book.fm Page 305 Tuesday, July 26, 2005 12:13 AM

Chapter 10

Relationship
Management (Strategic
Supplier Relationships)
Function

Supply market intelligence Chapter/
Appendix

Objective

Tactical Step

Supply market research

Opportunity identification and validation

2

Project approval

2

Establishing the team

3

Project plan

3

As-is assessment

4

Supply market research

5

Market forecasts

5

External and market analyses 6

Detailed supplier evaluation and research

7

Evaluate current and alternative strategies

8

Understand contract formation 8

Strategy and resource commitment

305

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306 Ⅲ Supply Market Intelligence

Chapter/
Appendix

Function

Objective

Tactical Step

Strategic sourcing Negotiate and select supplier Develop relationship strategy 8

Strategy position paper

8

Develop requests for information (RFIs) and build negotiation strategy

9

Negotiate

9

Final supplier selection

9

Form contracts

9

Implement contracts

9

Transition to relationship manager 10

Communicate expectations

10

Measure performance

10

Resolve issues and develop supplier performance

10

Build an organization for supply-chain excellence

11

Benchmark performance and drive continuous improvement 12,
App. B

Implement and promote compliance Relationship management Improve supplier performance

Benchmarking processes and driving continuous improvement 10.1 Chapter Outline
Ⅲ Why relationship management? Ten reasons why you need a dedicated relationship management function
Ⅲ Making the transition from strategic sourcing to relationship management
Ⅲ Organize the relationship management team
Ⅲ The case of software development and proprietary technology

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References: 867–888, 1999. Deans and K.R. Karwan, Eds., London: Idea Gr oup Publishing, 1994, 279–293. Gambetta, D., Mafia: the price of distrust, in Gambetta, D. (Ed.), Trust, Basil Blackwell, New, York, 1988, pp AU2789_book.fm Page 366 Tuesday, July 26, 2005 12:13 AM 366 Ⅲ Supply Market Intelligence Gambetta, D., Can we trust trust?, in Gambetta, D. (Eds.) Trust, Basil Blackwell, New York, 1988, pp Goodhue, D., Wybo, M.D., and Kirsch, L.J., The impact of data integration on the costs and benefits, MIS Quarterly 16, 293–321, 1992. Goodhue, D.L., Kirsch, L.J., Quillard, J.A., and Wybo, M.D., Strategic data planning: lessons from the field, MIS Quarterly 16, 11–34, 1992. Action, Boston, MA: Harvard Business School Press, 1992, 25–56. Hagedoorn, J. and Narula, R., Choosing organizational modes of strategic technology partnering: international sectoral differences. Journal of International Business Studies 27, 265–284, 1996. 31, 1–16, 2001. Handfield, R. and Nichols, E., Supply Chain Redesign, Upper Saddle River, NJ: Prentice-Hall, 2002. Handfield, R., Straight, S., and Sterling, W., Reverse auctions: how do suppliers really feel about them?, Inside Supply Management, 18–24, 2002. Holm, D.B., Eriksson, K., and Johanson, J., Creating value through mutual commitment to business network relationships, Strategic Management Journal, 20, 467–486, 1999. Kogut, B., Joint ventures: theoretical and empirical perspectives, Strategic Management Journal, 9, 319–332, 1988. Kotter, J.P., Leading Change, Cambridge, MA: HBS Press, 1996. York, 1988, pp. 194–210. Martin, J., Information Engineering, Savant Research Studies, Carnforth, Lancashire, England, 1986. on “Supply Chain Linkages”) 29, 553–577, 1998. Nishiguchi, T., Strategic Industrial Sourcing: The Japanese Advantage, New York: Oxford University Press, 1994. Nooteboom, B., Berger, H., and Noorderhaven, N.G., Effects of trust and governance on relational risk, Academy of Management Journal 40, 308–338, 1997. AU2789_book.fm Page 367 Tuesday, July 26, 2005 12:13 AM Relationship Management (Strategic Supplier Relationships) Ⅲ 367 Journal 40, 261–278, 1997. Management 20, 284–299, 2003. Rossiter, C.M., Jr. and Barrett, W.P., Communicating Personally, New York: BobbsMerrill, 1975.