Who is a Vendor ???

1. Who is a Vendor ???

2. Vendor management and Vendor partner ship Vendor Partnership

3. Vendor Partnership

5. Supplier collaboration ( possible areas for buyer – supplier collaboration

7. research done among 150 companies within 31industries Following are the recommendations • Companies should align their SCM systems with strategic initiative • and goals E.g.. Partnerships . • 2. Select suppliers based on criteria, stretching beyond cost • per unit considerations. • 3. Certify suppliers partners to establish a common language for • communication • 4. It is important to constantly refine and improve the manufacturers process • 5. Use technology to improve suppliers partnerships. Rather than limiting to • only one or two ways of working with the vendor, use a wide array • of communication tools

8. Supplier Management • Traditional management • Leading supplier management • Emerging supplier Management • World class supplier management

9. Traditional suppliers Management The most basic and primitive type relationship structure ….. • Lacks relationships –manufacturer dictates the relationship • Suppliers are viewed as interchangeable and have • frugal relationships • No formal evaluation method. Evaluation mostly by the • purchasing department and mostly manual • 4. Communication one sided and only when absolutely • necessary • 5.Incomming inspection a routine and a necessity • 6. Rejection an order of the day

10. Emerging Supplier Management This is the next level • Preferred suppliers with limited relationships structure • suppliers rating system is not exhaustive but quite • detailed • 3. Bidirectional communication but mostly related to • procurement decisions. • 4.Key suppliers provide product certification • 5. Site visits, surveys review and other tools that can • bring the buyers closer to the suppliers. • 6. Limited suppliers consolidation.

11. Leading suppliers Management An advanced supplier management type – well defined structure and format Formal supplier certification Service level agreements with performance metrics. The relationship goes Beyond the product and includes the service components that surrounds the product. Formal evaluation which is based on scientific principles and where all the Departments are involved. A transparent system which provides an input not only To the suppliers but also to the buying company. Understanding the suppliers cost drivers and incentives. This helps companies Decide A Price that is encouraging .

12. World class supplier management This is the ultimate stage in supplier management – here both the companies Aim to fight the competitor in the end user market. The relationship is Mutually dependent and based on sound communication. Supplier self certification – evaluates himself and is concerned with becoming The best and a valuable partner. Key supplier account management – where the buying company considers The supplier as key supplier Strategic relationship based on long term strategy Inter departmental co ordinations Systemic performance rating/feedback which is based on a scientific and systematic system To improve productivity Two way communication

13. Supplier management process • Supplier relationship management • Supplier development • Supplier performance management

14. Supplier Relationship Management ( SRM ) • Open communication • Trust • Streamline the process • To build relationship • Fill gaps between expectations, needs & wants

15. Supplier development • Technological up gradation • Training – learning –understanding and implementing improvements in • The area of manufacturing technology, raw material up gradation etc. • 2. Emotional and psychological up liftment to handle day to day activities • 3. Technical and managerial support to take care any exigencies that • Can disturb the schedule of . • 4. Any other kind of help that will directly/indirectly affect the product being • supplied to the company

16. Human behavior Assertive - aggressive & submissive

17. Assertive Win – Win Submissive U win – I lose Arrogance I lose – U lose I win I lose U Win U Win Aggressive Win – lose U lose U lose

19. Customer Relation and communications • Communication is central to any successful relationship. • In terms of Customer Relationship • Management, communication needs to be consistent and high quality; • as determined by: • on time • focused • relevant • reliable • coherent • Importantly also, • for • effective communications it's the message and meaning • that is received that counts

20. What is Quality Service? Quality refers to: The quality of our Establishment – clean, modern and attractive – a pleasant environment for “Working Out” and working in. The Quality of our Staff– people who are knowledgeable, friendly and helpful; people who have the ability to perform well and the flexibility to adapt to the challenges of working in a busy environment. The Quality of our Service – The quality of our services to meet the needs of all our customers.

21. A person providing the excellent Service and Customer Care : Care has the following characteristics: • A friendly disposition • A positive attitude • A prompt and appropriate response • The ability to identify your needs in that situation • A willingness to help • A knowledge relating to all products • An ability to communicate well • A readiness to provide “that little extra something” • Courtesy, concern and care

22. Customer Care and Quality Service is all about: Treating customers with care, courtesy and efficiency Following established systems and procedures effectively Carrying out your job tasks effectively and getting them right first time Having a positive attitude towards work and customers Setting high standards for the way you work

23. Why is it so important? Customer Care and Quality Service is at the heart of all good service – oriented organizations. Whether it is the local sports clubs swimming pools or an organization like ours, competition is keen. Customer Care and Quality Service is good for the company. Customer Care and Quality Service is good for our clients. Quality Service is good for you!

24. What Skills are Needed? • Communication – Verbal And Non Verbal • Questioning Skills To Gather Information • Helpfulness • Effective Use Of Body Language • Good Product Knowledge • Listening Skills • Courtesy • Effective Complaint Handling Skills • Friendliness • Problem Solving Skills • Objection Handling Skills

25. Problem-Solving Steps • Recognize that there is a problem • Identify the problem • Generate alternative solutions • Choose among the alternative solutions • Implement the chosen solution • Evaluate the solution The Five Why's

26. KSAM Key Supply Account Management A buying company has a team called KSAM – THEIR JOB IS TO WORK On building relationship and management Some of the features - refer page 190 Pre KSAM Early KSAM Mid KSAM Partnership KSAM Strategic KSAM

27. Stages in the development of a Customer Relationship The Pre-relationship Stage The event that triggers a buyer to seek a new business partner. The Early Stage Experience is accumulated between the buyer and seller although a great degree of uncertainty and distance exists. The Development Stage Increased levels of transactions lead to a higher degree of commitment and the distance is reduced to a social exchange. The Long-term Stage Characterised by the companies’ mutual importance to each other. The Final Stage The interaction between the companies becomes institutionalized.

28. Stages in the Development of a Key-Account Relationship High Synergistic KAM Partnership Degree of involvement Mid-KAM Early-KAM Low Pre-KAM Transactional Collaborative Nature of customer relationship

29. A Relationship Life Cycle Model High cooperation Low competition Pre- relationship stage Decline stage Development stage Maturity stage Low cooperation High competition Time

30. Supplier Performance Management

31. Metrics Metric = A system of related measures that facilitates the quantification of some particular characteristic