Your SlideShare is downloading. ×
  • Like
Vendor Development as Strategic Alliance- Rakesh Ravindran
Upcoming SlideShare
Loading in...5

Thanks for flagging this SlideShare!

Oops! An error has occurred.


Now you can save presentations on your phone or tablet

Available for both IPhone and Android

Text the download link to your phone

Standard text messaging rates apply

Vendor Development as Strategic Alliance- Rakesh Ravindran


Vendor Development to Strategic Alliance

Vendor Development to Strategic Alliance

Published in Business , Technology
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to like this
No Downloads


Total Views
On SlideShare
From Embeds
Number of Embeds



Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

    No notes for slide


  • 1. Vendor Development Presented by Rakesh Ravindran Roll No. 21 IGTC 2008-10
  • 2.
    • Trend is to
    • Buy instead to make
    • Outsource
    • Improve quality
    • Lower inventories
    • Integrate Supplier-Purchase system
    • Create co-operative relationships
    • such as partnerships
    • Underline importance for outstanding supplier performance
  • 3.
    • Any activity that a buying firm undertakes to improve a vendor’s performance & capabilities to meet the buying firm’s supply need
    • Supply Chain Management Effectiveness
      • Driven primarily by the organization’s ability to manage the internal and external links of customers, the buying organization & suppliers
    Vendor Development
  • 4. Customer satisfaction depends on supplier performance SUPPLIERS QUALITY COST DELIVERY QUANTITY OTHER
  • 5. Purchaser-Supplier Matrix Chain Marginal Satisfaction Total Dissatisfaction Marginal Satisfaction Marginal Satisfaction Marginal Satisfaction DESIRED Complete Satisfaction Complete Satisfaction Purchaser Supplier ZONE
  • 6. View of Buyer-Supplier Relationship TRADITIONAL
    • Lowest Price
    • Specification Driven
    • Short-term, reacts to market
    • Trouble Avoidance
    • Purchasing’s Responsibility
    • Tactical
    • Little Share of Information
    • Total Cost of Ownership
    • End-Customer Driven
    • Long-term
    • Opportunity Maximization
    • Cross Functional Teams &
    • Top Management Involved
    • Strategic
    • Both supplier-buyer share
    • short- & long-term plans
    • Shared risk & opportunity
    • Standardization
    • Joint Ventures
    • Share Data
  • 7. assessment partnership alignment rationalization improvement Developmental Path to Partnership
  • 8. Partner Selection
    • Cost
    • Safety
    • Quality
    • Delivery
    • Environment
    • Financial stability
    • Management stability
    • Continuing improvement
    • Technological accomplishment
    • Congruence of management values on issues concerning customer satisfaction
    • Concern for quality
    • Employee involvement
    • Supplier relationship
    • Personal compatibility between functional counterparts
    Partner Selection
  • 9. Success Indicators of a Successful Partnership
    • Improved formal communication process
    • Commitment to our supplier’s success
    • Mutual profitability
    • Stable relationship not dependent on few personalities
    • Consistent and specific feedback on supplier’s performance
    • Realistic expectations
    • Employee accountability for ethical business conduct
    • Meaningful information sharing
    • Guidance to supplier in defining improvement efforts
  • 10. Strategic Alliance
    • Both buyer and seller believe that it is in best interest of both to formalize the relationship beyond the standard ‘buying-selling model’
  • 11. Concerns about Partnership
    • One partner might take over the preferred status
    • In a single-source relationship, supplier’s know that customers depend on them and they may abuse that relationship
    • Supplier Relationship management is important: understand and identify value (ultimate long-term, life-cycle cost and benefit to the user)
  • 12. Supplier Development
    • Prospective supplier must be persuaded to accept an order
    • Purchaser is aware of benefits to both the parties that supplier may not be aware of
    • Purchaser pre-determines prices and terms and conditions
    • Purchaser must understand supplier’s capability to ensure win-win proposal
    • Assures future source of supply
  • 13.