Supplier Relationship Management: The Key to Competitive Advantage


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Kevin Turner, director of Global eCommerce Integrations at Dell presented at CPO Summit, November 2012.

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Supplier Relationship Management: The Key to Competitive Advantage

  1. 1. Supplier Relationship Management:The Key to Competitive Advantage Kevin Turner Director, Global eCommerce Integrations
  2. 2. Agenda• Introduction• Managing the Customer Relationship• Technology in the Source to Settle Process• Dell Capabilities• ROI Benefits of Procurement Integration2 12/3/2012 Global Marketing
  3. 3. AbstractSupplier Relationship Management: The Key toCompetitive AdvantageIf you’re a world-class procurement organization, you know the value ofstrategic sourcing and the crucial role that suppliers play in that process.Supplier Relationship Management is increasingly seen as an ongoingprocess to ensure success with your vendors. But with the many disparateprocurement technology solutions and supplier networks out there, howcan suppliers effectively do business with not just your organization, butwith all their customers? In this session, Kevin Turner, Director, Dell’sGlobal eCommerce Integrations, will discuss the importance ofstandardization, customer segmentation, and user-friendly technologyservices, and the downside of network/participation fees. He will relateDell’s experiences – from a supplier’s perspective – in effectively using aneprocurement solution to build and manage long-term, one-on-onerelationships between the supplier and the customer, while also having theability to do business on a broader scale with a wide range ofcustomers. Attendees will learn how effectively managing supplierrelationships, and the contracts put into place with them, is the key toseeing real returns and a true competitive advantage.3 12/3/2012 Global Marketing
  4. 4. The ‘New’ Dell • Implementation and • Desktops, workstations, laptops installation of products • Leader in virtual client • Manage customers’ • Leader in workstations infrastructure Client Enterprise Services Software • Systems management • PowerEdge server line • Data/network security • Acquisitions in storage and networking • Protect more $ than national debt • 1,000,000 Data Center Server4 12/3/2012 Global Marketing
  5. 5. What is PremierConnect?PremierConnect is Dell’s B2B eCommerce solution.It integrates a customer’s ERP system with Dell’s Premier Page, helping to speedprocurement, lower costs, maximize accuracy, and streamline processes. Offers a complete solution for Integrates with your Dell your global end-to-end electronic customized catalog, streamlining procurement process processes from shopping through invoicing Customized with agreed-upon products, prices and standard User-friendly and secure from configurations specified on catalog through payment your Dell catalog5 12/3/2012 Global Marketing
  6. 6. What is PremierConnect?6 12/3/2012 Global Marketing
  7. 7. Global Organization7 12/3/2012 Global Marketing
  8. 8. Customer Complexities A lot ManySpend per Number ofCustomer Customers Little Few Small Complexity Large 8 12/3/2012 Global Marketing
  9. 9. Customer Segmentation A lot Global 500 Large Enterprise Federal AccountsSpend per PublicCustomer Accounts (MPA, SPA, Small & HCLS) Medium Business Little Small Complexity Large 9 12/3/2012 Global Marketing
  10. 10. Trends in eProcurement Reduce cost for content management Technology in Sourcing events Extend automation to the Settle process Standardization in Technology Reliance on Enablement experts10 12/3/2012 Global Marketing
  11. 11. Challenges in the Relationship Agility in IT required changes … reliance on ERP vendor and outside firms Process Exceptions … ePO without catalog; eInvoice without ePO Many procurement solutions … adaptability to various technologies and solutions Vendor Fees … Pay to Play Integration Knowledge & Support11 12/3/2012 Global Marketing
  12. 12. Good Relationships are….. Agreed-upon goals, objectives … and schedule An executive commitment Dedicated appropriate contacts for project duration Catalog with pre-negotiated products and pricing Ability to send electronic POs, taking full advantage of your ERP investment … eInvoice, ePayment A commitment to utilization to achieve full return on investment12 12/3/2012 Global Marketing
  13. 13. eProcurement EnablementExample eProcurement Vendor eProcurement Vendor ERP with Support Self Service (example Oracle/SAP) (example SciQuest) (example Ariba) 1:1 relationship 1 : many relationship 1 : many relationship Customer IT team ePro Vendor team Customer IT team supports supports supports Customer maintenance Ongoing support via Customer maintenance challenge (IT moves on) vendor challenge (IT moves on) Less standardization Good standardization Good standardization No vendor fees No vendor fees Vendor fees (typically)13 12/3/2012 Global Marketing
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  20. 20. ROI CalculatorWhat is it?Its an informational tool that helps estimate your annual savingsdue to integrating your ERP with Dells PremierConnect.How did we create it?Comprehensive research/analysis: • Leading Industry Analysts • Global Customer interviews • Global Internal Stakeholder interviews • Key customer benefits: Streamlined Increased Improved Reduced Estimated order processing compliance accuracy cycle time Annual Savings See it in action20 12/3/2012 Global Marketing
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  26. 26. Thank