Collaborative Partnerships - Supply-Chain.Org

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Collaborative Partnerships When developing partnerships, it is necessary to decide which suppliers will make the best partners. The Supplier Relationship Continuum Arms Length Collaborative Strategic Class III 50 - 60% Class II 35 - 40% Class I 5 - 10% 12 © 2002 PricewaterhouseCoopers, all rights reserved
Model of Price/Cost Development vs. Relationship Characteristics Supplier Advantage Customer Advantage RELATIONSHIP Arms Length Collaborative Strategic Supplier Price Regular Inflationary Decreases Decreasing Further Decreases Increases Supplier Costs Stable Stable Decreasing Decrease (Within Range) (Within Range) (By Design) Supplier Margin Increasing Decreasing Relatively Stable Stable Relationship Adversarial Adversarial Cooperative Integrated Cost Structure Unknown Challenged But Focused on Specific Transparent Largely Unknown Cost Drivers Pricing Mechanism Competitive Threat Competitive Threat Cost Principal Targeted – Expect 15% to 40% Improvements The goal is to select the appropriate Collaboration Partners. 13 © 2002 PricewaterhouseCoopers, all rights reserved
Page 1 and 2: Real World Collaboration: Back 2 Bu
Page 3 and 4: Many Organizations Have Embraced Su
Page 5 and 6: Where Are We Today ! Regional / Loc
Page 7 and 8: So What’s New “Strategic” Sou
Page 9 and 10: Collaborative Partnerships The part
Page 11: Collaborative Partnerships It is im
Page 15 and 16: Collaborative Partnerships What do
Page 17 and 18: Collaborative Partnerships “Best
Page 19 and 20: Supplier Stakeholders Impact Survey
Page 23 and 24: Supplier Stakeholder Impact Survey
Page 29 and 30: The Collaborative Landscape e-Fulfi
Page 31 and 32: The Three Dimensions of Collaborati
Page 33 and 34: Key Questions Regarding Collaborati
Page 35 and 36: Summary Operationally Financially T

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