战略分析工具课件

Click to edit Master text styles,Second level,Third level,Fourth level,Fifth level,*,Value Managed Relationships,Click to edit Master title style,Sheila Dubin,Value Managed Relationships,December 1998,Author:,1,Sheila DubinValue Managed Rela,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 process and success,Value Managed Relationships Objectives,2,After completing this module,VMR Concept,VMR Key Success Factors,VMR Sources Of Value,Bain VMR Process,Example,Key Takeaways,Agenda,a.tr,3,VMR ConceptAgendaa.tr3,A Value Managed Relationship (VMR) is a full partnership between a customer and a supplier.,Its goal is to maximize quality and minimize total system costs of doing business through collaborative sharing of information and resources.,A VMR creates a win/win relationship.,VMR Definition,4,A Value Managed Relationship,“,Partnership”,True VMR,Procurement Strategies,Value Managed Relationship,Sole Source,Vertical Integration,Competitive Bid,Short-term Contract / Spot,Long-term Contract,A VMR is one procurement strategy to maximize cost savings and strategic value.,What is a VMR?,5,“Partnership”True VMR Procure,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 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, exceeds the value of all other types of relationships.,How Does a VMR Work?,6,A Value Managed Relationship,Fragmented supplier base, sporadic communication,Single or small number of suppliers, frequent communication,In-house supply, communication frequent,Traditional Arms Length Approach,Vertical Integration,Investments based upon manufacturers needs,Potential for customized investment in facilities/equipment,May require investment in weak strategic business,Adversarial bid negotiations to obtain lowest unit price,Long-term commitment focused upon lowest total systems cost using value chain perspectives,Focus driven by internal incentives/ transfer prices,Separate product design,Joint product design and cross functional participation,Joint product design often at odds,VMR,VMRs can exceed the value of both traditional contracts as well as vertical integration.,Strategic Purchasing Options,a.tr,7,Fragmented supplier base, spor,High Potential,High,Low,High,Low,Purchasing 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 appropriate where high volume and significant value added occurs.,Medium/low potential,Where Are VMRs Appropriate?,8,High PotentialHighLowHighLowP,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 competitive 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?,9,Large dollar purchaseVMRs are,Consolidate volume in long-term partnership,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 leads to more reasons to collaborate,A successful VMR will continue to create value as the relationship progresses.,Value Cycle,10,Increased pace of innovation l,VMRs create value for the buyer.,Higher quality and fewer rejects,Superior service,Partner in joint system cost reduction,Innovation,Technological expertise,package performance 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,a.tr,11,VMRs create value for the buye,VMRs create value for suppliers.,Larger volumes in fewer items,longer run lengths 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 VMRsSupplier,12,VMRs create value for supplier,VMRs have averaged 15% to 20% cost savings.,Average Range,Bain Experience in VMRs,13,VMRs have averaged 15% to 20%,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%,Guaranteed 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,a.tr,14,Although the value managed rel,VMR Concept,VMR Key Success Factors,VMR Sources Of Value,Bain VMR Process,Example,Key Takeaways,Agenda,a.tr,15,VMR ConceptAgendaa.tr15,Over one half of existing partnerships do not meet expectations.,This reality increases the need to understand and focus on the key success factors,Partnerships Expectations,16,Over one half of existing part,Strategy, organization and process must be in place in order to ensure VMR success.,Clarity of and agreement on strategy and goals,Strategy,Appropriate level of involvement in and across organizations,Organization,Detailed and structured process for identifying and implementing opportunities,Process,Key Success Factors,17,Strategy, organization and pro,Long term relationships focused on total value are critical strategic issues that must be clearly articulated.,VMRs pursued 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 selected based on long-term total value,opportunities identified and captured across entire supply chain,Key Success FactorsStrategy,18,Long term relationships focuse,Involvement and cooperation across the organization is critical to success.,Senior management direct involvement and ongoing interest/support,Cross-functional involvement 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,19,Involvement and cooperation ac,A detailed process must be in place to maximize value and ensure ongoing opportunity identification.,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,a.tr,20,A detailed process must be in,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 Partial SuccessStrategy,a.tr,21,Scope of partnership limitedFo,Limited senior management participation,Little cross-functional involvement,Over-centralized decision making: Not participative/inclusive,Ad hoc structure set up to implement strategy,Partial success can be caused by senior or line organizational inadequacies.,Reasons for Partial SuccessOrganization,a.tr,22,Limited senior management part,Lack of internal and external consensus building,Lack of relentless pursuit,Supplier selection not rigorous and fact-based,Technical opportunities not identified up front,Lack of systems and structures to perpetuate the process,An incomplete process can also cause limited success.,Reasons for Partial SuccessProcess,a.tr,23,Lack of internal and external,To achieve successful VMRs, there are several areas of potential obstacles to watch out for.,Benefits,are vague and,unqualified,no “full potential” 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 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.g. multi-divisional companies),Watchouts,24,To achieve successful VMRs, t,VMR Concept,VMR Key Success Factors,VMR Sources Of Value,Bain VMR Process,Example,Key Takeaways,Agenda,25,VMR ConceptAgenda25,Improved quality due to reduced variability,Improved communications,Longer commitments allow for longer run lengths,Purchasing economies,A strong VMR 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,Technology 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,engineering,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),26,Improved quality due to redu,Value engineering and 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 improvement,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),27,Value engineering and systems,Disguised example,Increase 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,28,Disguised exampleIncrease of 3,New Designs,Indexed Quality,Indexed Cost,Value engineering identified three new product options that increased quality and reduced cost.,*,Protypes developed jointly with supplier,Disguised example,Value EngineeringExample,29,New DesignsIndexed QualityInde,Before VMR,(5 Quality Control FTEs),After VMR,(3 Quality Control FTEs),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 eliminated redundancy and saved 40% of quality control costs.,To packaging operations,Ongoing Feedback to Vendor,Systems Costs Example,30,Before VMRAfter VMRSupplierCu,Overall, this client achieved a 19% cost reduction through the VMR example shown.,Summary of Cost SavingsExample,31,Overall, this client achieved,Volume/price savings and some level of value engineering/ 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 improvement,System cost reduction,Volume/price effect,Typical Timing,32,Volume/price savings and some,VMR Concept,VMR Key Success Factors,VMR Sources Of Value,Bain VMR Process,Example,Key Takeaways,Agenda,33,VMR ConceptAgenda33,Identify VMR Opportunities,Understand Industry,Cost Structure,Select VMR Candidates,Obtain Top Management Commitment,Identify Specific 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 are fully committed,Conduct analysis to prove hypotheses and quantify savings opportunities,Formalize relationship and implement opportunities,Track progress of savings and relationships,VMR Process,34,Identify VMR OpportunitiesUnde,EXAMPLE,Identify VMR Opportunities,Understand Industry,Cost Structure,Select VMR Candidates,Obtain Top Management Commitment,Identify Specific Cost,Reduction Opportunities,Implement VMR Opportunities,Track VMR Savings,VMR Process,35,EXAMPLEIdentify VMR Opportunit,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 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,36,This matrix will help you prio,Because 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 client 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,37,Because the VMR process is len,Identify VMR Opportunities,Understand Industry,Cost Structure,Select VMR Candidates,Obtain Top Management Commitment,Identify Specific Cost,Reduction Opportunities,Implement VMR Opportunities,Track VMR Savings,VMR Process,38,Identify VMR OpportunitiesUnde,Understanding the industry structure validates opportunities that were identified in the first VMR process step.,Industry Cost Structure and Drivers,Industry Competitive Structure,Industry Capacity Utilization,How suitable is this market and its competitive dynamics for a VMR?,How important is the client as a customer in this industry?,What is the cost structure of the industry?,Example,Questions:,Who are the key players?,What is the industry capacity utilization?,What drives this cost structure?,How fragmented is the industry?,What is the utilization of each player?,What type of cost savings opportunities might exist?,On what factors do key players compete?,What drives utilization?,Understand Industry Structure,39,Understanding the industry str,Identify VMR Opportunities,Understand Industry,Cost Structure,Select VMR Candidates,Obtain Top Management Commitment,Identify Specific Cost,Reduction Opportunities,Implement VMR Opportunities,Track VMR Savings,VMR Process,40,Identify VMR OpportunitiesUnde,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 resources,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,41,VMR partners must be able to p,Initial analysis of the supplier must 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,Initial Supplier Evaluation,42,Initial analysis of the suppli,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,Dedication/dependence,Interest in VMR,Systems economics,Flexibility of approach,Credibility of plan/resources,Technology,Scale,Financial,Supplier Evaluation,43,To further determine whether,Partnership Development Process,Identify VMR Opportunities,Understand Industry,Cost Structure,Select VMR Candidates,Obtain Top Management Commitment,Identify Specific Cost,Reduction Opportunities,Implement VMR Opportunities,Track VMR Savings,VMR Process,44,Partnership Development Proces,Implementation,Set up partnership management structure and rollout,Negotiations,Share aggregate responses,Supplier Proposals Analysis,Receive responses,Initial Contact with Suppliers,Describe 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 over category strategy and volume expectations,The optimal partnership development process is explicit and clearly articulated.,Partnership Development Process,45,ImplementationSet up partnersh,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% 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,VMR,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,46,Number of Suppliers:Oligopoly,People,Is senior management 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 sharing of required information?,Can all the information systems changes be identified and