1. Managing Purchasing and Supply Relationships

2. RELATIONSHIP SPECTRUM
Relationship Spectrum of Buyers and Sellers (Diagram from workbook by Mike Fogg)
RELATIONSHIP SPECTRUM
Closer
Distant

3. RELATIONSHIP SPECTRUM
Relationship Spectrum of Buyers and Sellers (Diagram from workbook by Mike Fogg)
RELATIONSHIP SPECTRUM

4. Supply Positioning Analysis (Diagram from workbook by Mike Fogg)

5. Using the Supply Positioning Model (Diagram from workbook by Mike Fogg)x x x
Risk, vulnerability, exposure x x x
Relative cost to the organisation

6. Supply Positioning Model (Diagram from workbook by Mike Fogg)
HIGH
Strategic
Security
Critical
Tactical
Acquisition
profit
Risk, vulnerability, exposure
LOW
HIGH
Relative cost

7. Relationship Spectrum (Diagram from workbook by Mike Fogg)

8. Relationship Spectrum (Diagram from workbook by Mike Fogg)

9. Tactical Relationships
Adversarial
Arm’s length
Transactional
Closer tactical
Single sourced
What examples of each can you give from your experience?

10. Tactical Relationships (Diagram from workbook by Mike Fogg)
RELATIONSHIP SPECTRUM

11. Relative value of the account
Supplier Preferencing Model (Paul Steele and Brian Court, published in Profitable Purchasing Strategies, McGraw Hill)
HIGH
Development
Core
Nuisance
Exploitable
Attractiveness of customer
LOW
HIGH
Relative value of the account

12. Marketing Management Matrix (Paul Steele and Brian Court, published in Profitable Purchasing Strategies, McGraw Hill)

13. Tactical Relationships (Diagram from workbook by Mike Fogg)

14. Strategic Relationships
Outsourcing
Strategic Alliance
Partnership
Co-destiny
What examples of each can you
think of in your organisation?

15. Relationship Spectrum (Diagram from workbook by Mike Fogg)

16. Strategic Relationships (Diagram from workbook by Mike Fogg)

17. Selecting Strategic Suppliers
Knowledge of people, processes and performance
Capability to meet requirements
Compatibility
Comparison with competitors
Relationships tend to evolve over time