Becoming an Attractive Customer

BECOMING AN ATTRACTIVE CUSTOMER Global companies are seeing only 55% of the expected value from their strategic sourcing efforts. 55% Could your procurement practices be a barrier to unlocking this additional value? UNTAPPED POTENTIAL Degree of untapped potential buyers and suppliers believe ihere is in their relationships Little to none A significant amount A great deal Buy-side perceptions Sell-side perceptions NEGOTIATION PRIORITIES Buyer Solves problem Procurement department Meets requirements Delivered on time Acceptable level of risk Best value Meets budgetary constraints the right deal Fair price Meets mandates Overcoming resistance Potential to upsell Meets fargets Supplier VALUE ADDED <10% more value Addifional value can be 10-25% more value generated through collaborative relaltionships. 26-50% more value 51-75% more value Buyers reported realising an average of 40% more value from the suppliers they worked collaboratively with. 76-100 % more value YOUR NEXT STEPS To become a more altractive customer and unlock this added value, during a negotiation you need to: £ Be practical about Ве easy fo sell to Be open about your aims validating credentials Allow suppliers a reasonable margin Encourage innovation 100PCEFFECTIVE.COM Sources: The business case for SRM: Highlights from recent research By Jonathan Hughes and Jessica Wadd, Vantage Partners, 2012 | DILF's Strategic Supplier Relationship Management, Mypurchasingcentre.com, 2012 | Mind of your Supplier, 100% Effective, 2013 | Rules of Atraction, Supply Management Magazine, Paul Vincent, 2014 100% Effective PIKTOCHART.COM