戰(zhàn)略分析工具分析方法參考幻燈片

1、Sheila Dubin,Value Managed Relationships,December 1998,Author:,2,After completing this module, you will be able to:,Understand VMR concept and application Articulate types of cost savings opportunities created by VMRs Use the Bain framework to conduct a VMR Refer to real examples of Bains VMR proces

2、s and success,Value Managed Relationships Objectives,3,VMR Concept VMR Key Success Factors VMR Sources Of Value Bain VMR Process Example Key Takeaways,Agenda,4,A Value Managed Relationship (VMR) is a full partnership between a customer and a supplier. Its goal is to maximize quality and minimize tot

3、al system costs of doing business through collaborative sharing of information and resources.,A VMR creates a win/win relationship.,VMR Definition,5,“Partnership”,True VMR,Procurement Strategies,Value Managed Relationship,Sole Source,Vertical Integration,Competitive Bid,Short-term Contract / Spot,Lo

4、ng-term Contract,A VMR is one procurement strategy to maximize cost savings and strategic value.,What is a VMR?,6,A Value Managed Relationship can exceed the value potential of both vertical integration and traditionally negotiated arms length transactions: a consolidation of purchases to one or few

5、 suppliers who are capable of maintaining long term competitive economics, high quality and efficient delivery participants must share single goal of achieving lowest industry systems cost savings should be shared to provide mutual ongoing incentives to eliminate redundancies,A VMR, when appropriate

6、, exceeds the value of all other types of relationships.,How Does a VMR Work?,7,Traditional Arms Length Approach,Vertical Integration,VMR,VMRs can exceed the value of both traditional contracts as well as vertical integration.,Strategic Purchasing Options,8,High Potential,High,Low,High,Low,Purchasin

7、g volume (relative to total supplier sales),Value-added / engineered level,Product redesign Material substitution,Product redesign Material substitution Volume discount System cost improvement,Moderate Potential,Volume discount Some system cost,No / Little opportunity (need to cluster),VMRs are most

8、 appropriate where high volume and significant value added occurs.,Medium/low potential,Where Are VMRs Appropriate?,9,Large dollar purchase High level of value-added cost in product Fragmentation across many divisions and suppliers Client represents significant part of industry output Industry compe

9、titive intensity high: capacity utilization dropping consolidation in progress many new plants looking for volume historical industry price umbrellas,VMRs are most effective in large dollar, high value added products.,In Which Categories Are VMRs Most Effective?,10,Consolidate volume in long-term pa

10、rtnership,Increased pace of innovation leads to strategic benefits for both,Ensures continued supply for buyer and capacity utilization for supplier,Commitment and scale justifies joint investment in cost savings and R&D/technology,Joint efforts lead to system-wide benefits for both,Added value lead

11、s to more reasons to collaborate,A successful VMR will continue to create value as the relationship progresses.,Value Cycle,11,VMRs create value for the buyer.,Higher quality and fewer rejects Superior service Partner in joint system cost reduction Innovation Technological expertise package performa

12、nce improvements spec consolidation product redesign and materials substitution Pricing commensurate with larger, longer volume commitments Commitment to continuous improvement of the partnership,Value Of VMRsBuyer,12,VMRs create value for suppliers.,Larger volumes in fewer items longer run lengths

13、and fewer set-ups higher capacity utilization learning curve benefits Stable long term demand Sharing in buyers strong commitment to future growth Partner in joint system cost reduction Resources and stability to invest in technology Commitment to continuous improvement of the partnership,Value Of V

14、MRsSupplier,13,VMRs have averaged 15% to 20% cost savings.,Average Range,Bain Experience in VMRs,14,Although the value managed relationship can be sophisticated and complex, the results are quantifiable and simple.,100% of volume with one supplier for three years Up front price reduction of 7% Guara

15、nteed 9.8% recurrent savings within three years Cost-based indexed pricing over time 50/50 savings sharing Penalties and inspections built-in Etc.,VMR Sample Agreement,15,VMR Concept VMR Key Success Factors VMR Sources Of Value Bain VMR Process Example Key Takeaways,Agenda,16,Over one half of existi

16、ng partnerships do not meet expectations.,This reality increases the need to understand and focus on the key success factors,Partnerships Expectations,17,Strategy, organization and process must be in place in order to ensure VMR success.,Clarity of and agreement on strategy and goals,Strategy,Approp

17、riate level of involvement in and across organizations,Organization,Detailed and structured process for identifying and implementing opportunities,Process,Key Success Factors,18,Long term relationships focused on total value are critical strategic issues that must be clearly articulated.,VMRs pursue

18、d only where appropriate True supplier partnerships long-term relationships with one or few suppliers relationships at all organizational levels extensive two-way information sharing sharing of all savings willing to address inherent risks Focus on total value-chain, not input price suppliers select

19、ed based on long-term total value opportunities identified and captured across entire supply chain,Key Success FactorsStrategy,19,Involvement and cooperation across the organization is critical to success.,Senior management direct involvement and ongoing interest/support Cross-functional involvement

20、 in scheduling, logistics, design and development Implementation driven at grass roots level Clear process champions Formalized structure and process to perpetuate partnership,Key Success FactorsOrganization,20,A detailed process must be in place to maximize value and ensure ongoing opportunity iden

21、tification.,Up front identification of opportunities and unique value each partner offers Documented existence of significant untapped systems cost value Rigorous and fact-based supplier selection Extensive consensus building Systems and structures to perpetuate process,Key Success FactorsProcess,21

22、,Scope of partnership limited not win/win,Focus on price instead of total value supplier selection based on price failure to consider total system as source of savings,Chosen strategy inappropriate for purchase category,An inappropriate strategy can prohibit a win/win relationship.,Reasons for Parti

23、al SuccessStrategy,22,Partial success can be caused by senior or line organizational inadequacies.,Reasons for Partial SuccessOrganization,23,Lack of internal and external consensus building,Lack of relentless pursuit,Supplier selection not rigorous and fact-based,Technical opportunities not identif

24、ied up front,Lack of systems and structures to perpetuate the process,An incomplete process can also cause limited success.,Reasons for Partial SuccessProcess,24,To achieve successful VMRs, there are several areas of potential obstacles to watch out for.,Benefits are vague and unqualified no “full p

25、otential” economics analysis has been developed for both parties,Process Challenges,Assumptions are made by suppliers that VMRs are a one-time trick,Communication Challenges,Watchouts,Concerns about sharing expense and product information,Sufficient communication of the benefits of change throughout

26、 both organizations,There is a lack of understanding and commitment to changing the way business is done,Benefits of the VMR are split in a lop-sided manner,SKU proliferation,No ongoing value realization agenda has been created and/or no VMR champions are empowered to act,Organizational barriers (e.

27、g. multi-divisional companies),Watchouts,25,VMR Concept VMR Key Success Factors VMR Sources Of Value Bain VMR Process Example Key Takeaways,Agenda,26,Improved quality due to reduced variability Improved communications Longer commitments allow for longer run lengths Purchasing economies,A strong VMR

28、can capture the value inherent in vertical integration while allowing the client to focus both capital and management resources on its primary business.,Example Sources of Value:,Primary Sources of Value,Volume/Scale Economies,Value Engineering and Quality Improvement,System Cost Reduction,Technolog

29、y and capability sharing to create lowest cost, highest value product Joint determination of potential for: material substitution reduction of material content standardization of materials,Joint identification of redundant/duplicate processes, e.g. quality control order processing transportation eng

30、ineering management functions improved inventory control Cross company logistics sharing of transportation and distribution operations (e.g., leveraged backhaul opportunities, shared delivery runs),Estimate Percent of Total Value Created:,25%,50%,25%,Sources of Value (1 of 2),27,Value engineering an

31、d systems cost reduction are most difficult to implement and require the most senior involvment.,Source of Value,Methodology,Difficulty of Implementation,Senior Management Involvement,An open dialogue regarding product design begins to optimize design/cost trade-offs,Value engineering and quality im

32、provement,Buyer and supplier jointly examine current methods of interaction and begin to eliminate redundancies,Systems cost reduction,Consolidation of suppliers allows the buyer to negotiate for share of incremental profit,Volume/scale economics,Sources of Value (2 of 2),28,Disguised example,Increa

33、se of 3.2 times,6% Profit Improvement,Relevant Plant Capacity Utilization,Incremental Margin Impact,Increasing a suppliers utilization by 22% had a 6% profit impact.,Volume/Scale EconomiesExample,29,New Designs,Indexed Quality,Indexed Cost,Value engineering identified three new product options that

34、increased quality and reduced cost.,*Protypes developed jointly with supplier Disguised example,Value EngineeringExample,30,Supplier,Customer,Joint Quality Control,Customer,Direct to packaging operations,= QC inspection personnel,In this example of systems cost VMR, the supplier and Bain client elim

35、inated redundancy and saved 40% of quality control costs.,To packaging operations,Ongoing Feedback to Vendor,Systems Costs Example,31,Overall, this client achieved a 19% cost reduction through the VMR example shown.,Summary of Cost SavingsExample,32,Volume/price savings and some level of value engin

36、eering/ quality benefits are realized very early in the relationship Additional value engineering savings and system cost reductions are more likely to come later,Bain experience has found that the value from VMR is developed over several years.,Years into VMR,Value engineering and quality improveme

37、nt,System cost reduction,Volume/price effect,Typical Timing,33,VMR Concept VMR Key Success Factors VMR Sources Of Value Bain VMR Process Example Key Takeaways,Agenda,34,Identify VMR Opportunities,Understand Industry Cost Structure,Select VMR Candidates,Obtain Top Management Commitment,Identify Speci

38、fic Cost Reduction Opportunities,Implement VMR Opportunities,Track VMR Savings,Select products for VMR based on purchasing volume and value-added,Analyze industry economics to develop savings hypotheses,Analyze suppliers to select best VMR candidates,Ensure senior management of client and supplier a

39、re fully committed,Conduct analysis to prove hypotheses and quantify savings opportunities,Formalize relationship and implement opportunities,Track progress of savings and relationships,VMR Process,35,Identify VMR Opportunities,Understand Industry Cost Structure,Select VMR Candidates,Obtain Top Mana

40、gement Commitment,Identify Specific Cost Reduction Opportunities,Implement VMR Opportunities,Track VMR Savings,VMR Process,36,This matrix will help you prioritize which opportunities are most appropriate for a VMR.,No/Little Opportunity (need to cluster),High,Low,Low,High,Purchasing Volume (Relative

41、 to Total Supplier Sales),Value-Added/Engineered Level,Product redesign Material substitution Volume discount System cost improvement,Volume discount Some system cost,Product redesign Material substitution,Moderate potential,High potential,Medium/low potential,Purchasing Category Priority,37,Because

42、 the VMR process is lengthy and time consuming, qualitative issues must also be evaluated in selecting where to implement a VMR.,Suppliers and client organizations must be willing to work closely together commit management time and effort prioritize success of VMR Top management of supplier and clie

43、nt must have authority to cover full scope of VMR Balance amount of cost savings with level of sensitivity associated with product category,Purchasing Category Selection,38,Identify VMR Opportunities,Understand Industry Cost Structure,Select VMR Candidates,Obtain Top Management Commitment,Identify S

44、pecific Cost Reduction Opportunities,Implement VMR Opportunities,Track VMR Savings,VMR Process,39,Understanding the industry structure validates opportunities that were identified in the first VMR process step.,How suitable is this market and its competitive dynamics for a VMR? How important is the

45、client as a customer in this industry?,What drives this cost structure?,How fragmented is the industry?,What is the utilization of each player?,Understand Industry Structure,40,Identify VMR Opportunities,Understand Industry Cost Structure,Select VMR Candidates,Obtain Top Management Commitment,Identi

46、fy Specific Cost Reduction Opportunities,Implement VMR Opportunities,Track VMR Savings,VMR Process,41,VMR partners must be able to perform in the relationship and be a willing partner.,Potential for low cost position Strong technology/quality New product development track record Adequate financial r

47、esources,Long Term Winners,Capability and Willingness to Develop a Partnership,Important category for supplier Client important to supplier Partnerships with other suppliers Scale to handle volume Parent company support,Ideal Partners,Supplier Prioritization,42,Initial analysis of the supplier must

48、be conducted to determine potential for being a long-term winner and capability/willingness to develop a partnership.,Example Analyses:,Size and market share Strategy Profitability Cash flow Quality philosophy and implementation Technology application Importance of clients business to supplier,Initi

49、al Supplier Evaluation,43,To further determine whether a specific supplier is a good VMR candidate, evaluate the vendor on a variety of criteria.,Quality of Service,Supplier Commitment,Magnitude of Cost Reduction Potential,Long-Term Leadership Potential,Product/delivery/systems Geographic coverage,D

50、edication/dependence Interest in VMR,Systems economics Flexibility of approach Credibility of plan/resources,Technology Scale Financial,Supplier Evaluation,44,Partnership Development Process,Identify VMR Opportunities,Understand Industry Cost Structure,Select VMR Candidates,Obtain Top Management Com

51、mitment,Identify Specific Cost Reduction Opportunities,Implement VMR Opportunities,Track VMR Savings,VMR Process,45,Implementation,Set up partnership management structure and rollout,Negotiations,Share aggregate responses,Supplier Proposals Analysis,Receive responses,Initial Contact with Suppliers,D

52、escribe proposed relationship,Selection of supplier(s),Comparative analysis,Elicit suppliers attitudes on a partnership with the client,Train staff to manage process, expand to other areas,Identification of BDP and system cost reduction targets,Follow-up with plant tours, quality checks, etc.,Hand o

53、ver category strategy and volume expectations,The optimal partnership development process is explicit and clearly articulated.,Partnership Development Process,46,Number of Suppliers:,Oligopoly,Giant(s) and Many,Fragmented,Sole Source,Giant(s) and Few,15-30,15-30,2-5,2-5,1,Supplier Concentration:,80%

54、 to 6-8 suppliers Rest with 10-20 suppliers,80% to 1 or 2 suppliers Rest with 15-30 suppliers,Evenly among suppliers,80% to 1 or 2 suppliers Rest with 1-4 suppliers,100% to 1 supplier,Long term competitive bids Short term competitive bids,VMR Long term competitive bids Short term competitive bids,VM

55、R Long term competitive bids Short term competitive bids,VMR Long term competitive bids Short term competitive bids,VMR Long term competitive bids,Potential Relationship Options:,A range of supplier configuration options, should be evaluated.,Supplier Configuration Alternatives,47,People,Is senior m

56、anagement committed to making this work? Have all organizational, cultural, and skill changes been addressed Are the incentives appropriate to ensure employee commitment?,Operational Execution,What is the governance structure? How is progress monitored? How will roadblocks be resolved? Is there open

57、 sharing of required information? Can all the information systems changes be identified and specified How will switch disruptions be minimized?,Partner Selection,What is the optimal number of suppliers? Do we really understand suppliers current and future cost position? Has the supplier screen inclu

58、ded non-cost parameters? Has the supplier made a realistic commitment? Is the supplier committed to delivering on the agreement?,Value,Is this the right input to target for a VMR? industry track record proportion of buyer cost structure Does the benefit outweigh the risks? switching costs buyer leve

59、rage Where is the value? Stages 1, 2 and 3 short vs. long-term Is the value realizable? potential hurdles and roadblocks,Each of these issues should be considered in evaluating a VMR.,Checklist for Successful Execution,48,Identify VMR Opportunities,Understand Industry Cost Structure,Select VMR Candidates,Obtain T