Partnering = A commitment by both customers and suppliers, regardless of size, to a long-term relationship based on clear, mutually agreed objective to strive for world-class. The key characteristics of partnerships sourcing are as follows: Top level management commitment Involvement by all relevant functions Customer and supplier working together A high level of trust, knowledge sharing and … More Partnering
Relationship Management = The process of analysing, planning and controlling an organisations relationships, in order to be able to leverage the more important relationships to the long-term benefits of the organisation. Relationship management involves a range of activities designed to: Gather information about the other parties in the firms commercial relationships in order to help predict and … More Relationship Management
Purchasing Research = The systematic study of all relevant factors which may affect the acquisition of goods and services, for the purpose of securing current and future requirements in such a way that the competitive position of the company is enhanced. To achieve its strategic objectives for supplier relationship and supply chain management, it is essential for … More Purchasing Research
Breach of Contract = An unjustified failure to perform an obligation under the contract. In appropriate cases, the party who has suffered a breach of contract may have any of the following remedies in law: Damages – Financial compensation for losses suffered as a result of the breach. Specific Performance – The court orders the defendant … More Remedies for Breach of Contract
One sourcing policy issue related to supplier relationship strategies is the extent to which the buying organisation is prepared to engage in Supplier Switching. Supplier Switching = Dropping an existing supplier or deciding not to renew a supply contract in favour of a new or alternative supplier. There may be a range of reasons for … More Supplier Switching
Contract Management = The process of ensuring that both parties to the contract meet their obligations and that the intended outcomes of a contract are delivered. It also involves building a good working relationship between the buyer and the supplier. Many of the cost savings and improvements available from contract and supplier management are achieved … More Contract Management
Risk Management = The process whereby organisations methodically address the risks associated with their activities with the goal of achieving sustained benefit. Identifying and quantifying vulnerability allows an organisation to prioritize resources to meet the most severe risks and to set defined thresholds at which action on an issue will be triggered. Risk Management strategies … More Risk Management Strategies
Principled Negotiation = Working collaboratively to attack a shared problem or to maximise a shared opportunity. The style seeks to decide issues on their objective merits and standing up for your legitimate rights and interests, whilst looking for mutual gains and insisting on fairness both in the debate and the outcomes. An approach to Principled … More Principled Negotiation
Key Qualities or Values which Build Relationships: Quality of interaction (each interaction should be a positive episode) Trust (supporting mutual investment in the relationship) Transparency (willingness to share information) Commitment (important for adding value and minimising risk) Cooperation and collaboration (avoiding adversarial relations) Mutuality (exchange and reciprocity) “Create – Deliver – Inspire” Luminary Group Ltd ©
Competitive Advantage = Performing strategically important activities more cheaply or better that your competitors. Success of which is mainly measured by market share. Michael Porter identified three generic strategies to Competitive Advantage: Cost Leadership – Seeking to become the lowest cost producer in an industry. Differentiation – Seeking to exploit a product or service perceived as … More Competitive Advantage
Blog for Buyers 