戰(zhàn)略分析工具分析方法ppt課件

1、Sheila DubinValue Managed RelationshipsDecember 1998Author:Value Managed RelationshipsAfter completing this module, you will be able to: Understand VMR concept and applicationArticulate types of cost savings opportunities created by VMRsUse the Bain framework to conduct a VMRRefer to real examples o

2、f Bains VMR process and successValue Managed Relationships ObjectivesValue Managed Relationships VMR ConceptVMR Key Success FactorsVMR Sources Of ValueBain VMR ProcessExampleKey TakeawaysAgendaValue Managed Relationships A Value Managed Relationship (VMR) is a full partnership between a customer and

3、 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 DefinitionValue Managed Relationships“PartnershipTrue VMR Procurement StrategiesValue Managed Relationshi

4、pSole SourceVertical IntegrationCompetitive BidShort-term Contract / SpotLong-term ContractA VMR is one procurement strategy to maximize cost savings and strategic value.What is a VMR?Value Managed Relationships A Value Managed Relationship can exceed the value potential of both vertical integration

5、 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 deliveryparticipants must share single goal of achieving lowest industry systems costsavings should b

6、e shared to provide mutual ongoing incentives to eliminate redundanciesA VMR, when appropriate, exceeds the value of all other types of relationships.How Does a VMR Work?Value Managed RelationshipsFragmented supplier base, sporadic communicationSingle or small number of suppliers, frequent communica

7、tionIn-house supply, communication frequentTraditional Arms Length ApproachVertical IntegrationInvestments based upon manufacturers needsPotential for customized investment in facilities/equipmentMay require investment in weak strategic businessAdversarial bid negotiations to obtain lowest unit pric

8、eLong-term commitment focused upon lowest total systems cost using value chain perspectivesFocus driven by internal incentives/ transfer pricesSeparate product designJoint product design and cross functional participationJoint product design often at oddsVMRVMRs can exceed the value of both traditio

9、nal contracts as well as vertical integration.Strategic Purchasing OptionsValue Managed Relationships High PotentialHighLowHighLowPurchasing volume(relative to total supplier sales)Value-added / engineered levelProduct redesignMaterial substitutionProduct redesignMaterial substitutionVolume discount

10、System cost improvementModerate PotentialVolume discountSome system costNo / Little opportunity (need to cluster)VMRs are most appropriate where high volume and significant value added occurs. Medium/low potential Where Are VMRs Appropriate?Value Managed RelationshipsLarge dollar purchaseHigh level

11、of value-added cost in productFragmentation across many divisions and suppliersClient represents significant part of industry outputIndustry competitive intensity high:capacity utilization droppingconsolidation in progressmany new plants looking for volumehistorical industry price umbrellasVMRs are

12、most effective in large dollar, high value added products.In Which Categories Are VMRs Most Effective?Value Managed RelationshipsConsolidate volume in long-term partnershipIncreased pace of innovation leads to strategic benefits for bothEnsures continued supply for buyer and capacity utilization for

13、 supplierCommitment and scale justifies joint investment in cost savings and R&D/technologyJoint efforts lead to system-wide benefits for bothAdded value leads to more reasons to collaborateA successful VMR will continue to create value as the relationship progresses.Value CycleValue Managed Rel

14、ationshipsVMRs create value for the buyer. Higher quality and fewer rejectsSuperior servicePartner in joint system cost reductionInnovationTechnological expertisepackage performance improvementsspec consolidationproduct redesign and materials substitutionPricing commensurate with larger, longer volu

15、me commitmentsCommitment to continuous improvement of the partnershipValue Of VMRsBuyerValue Managed RelationshipsVMRs create value for suppliers. Larger volumes in fewer itemslonger run lengths and fewer set-upshigher capacity utilizationlearning curve benefitsStable long term demandSharing in buye

16、rs strong commitment to future growthPartner in joint system cost reductionResources and stability to invest in technologyCommitment to continuous improvement of the partnershipValue Of VMRsSupplierValue Managed Relationships Lab SuppliesMedical SuppliesFlexiblePackagingGasesPunchesand DyesDrinksPac

17、kagingOffice SuppliesSBS FoldingCartonsElectricalSuppliesRigid InjectionMolded PlasticProductsCorrugatedBoxesFreightFlex PackagingThermoformedPartsMotorsAutomotivePartsMolded PlasticBottlesPower EquipmentProductsRecycledPaperboardCartonsBrickGlassOils and LubesChemicalsDextroseCoalBicycle PartsAdhes

18、ivesResins47%37%33%33%30%30%27%25%22%22%19%19%18%17%16%15%15%13%12%12%11%10%10%9%8%7%7%0%10%20%30%40%50%Cost Savings as a Percentage of SpendingVMRs have averaged 15% to 20% cost savings.Average RangeBain Experience in VMRsValue Managed RelationshipsAlthough the value managed relationship can be sop

19、histicated and complex, the results are quantifiable and simple.100% of volume with one supplier for three yearsUp front price reduction of 7%Guaranteed 9.8% recurrent savings within three yearsCost-based indexed pricing over time50/50 savings sharingPenalties and inspections built-inEtc.VMR Sample

20、AgreementValue Managed Relationships VMR ConceptVMR Key Success FactorsVMR Sources Of ValueBain VMR ProcessExampleKey TakeawaysAgendaValue Managed RelationshipsPartnership Not Meeting ExpectationsPartnership Meeting ExpectationsPartnership Exceeding Expectations 0%20%40%60%80%100%Total PartnershipsO

21、ver one half of existing partnerships do not meet expectations.This reality increases the need to understand and focus on the key success factorsPartnerships ExpectationsValue Managed RelationshipsStrategy, organization and process must be in place in order to ensure VMR success.Clarity of and agree

22、ment on strategy and goalsStrategyAppropriate level of involvement in and across organizationsOrganizationDetailed and structured process for identifying and implementing opportunitiesProcessKey Success FactorsValue Managed RelationshipsLong term relationships focused on total value are critical str

23、ategic issues that must be clearly articulated.VMRs pursued only where appropriateTrue supplier partnershipslong-term relationships with one or few suppliersrelationships at all organizational levelsextensive two-way information sharingsharing of all savingswilling to address inherent risksFocus on

24、total value-chain, not input pricesuppliers selected based on long-term total valueopportunities identified and captured across entire supply chainKey Success FactorsStrategyValue Managed RelationshipsInvolvement and cooperation across the organization is critical to success.Senior management direct

25、 involvement and ongoing interest/supportCross-functional involvement in scheduling, logistics, design and developmentImplementation driven at grass roots levelClear process championsFormalized structure and process to perpetuate partnershipKey Success FactorsOrganizationValue Managed RelationshipsA

26、 detailed process must be in place to maximize value and ensure ongoing opportunity identification.Up front identification of opportunities and unique value each partner offersDocumented existence of significant untapped systems cost valueRigorous and fact-based supplier selectionExtensive consensus

27、 buildingSystems and structures to perpetuate processKey Success FactorsProcessValue Managed RelationshipsScope of partnership limitednot win/winFocus on price instead of total valuesupplier selection based on pricefailure to consider total system as source of savingsChosen strategy inappropriate fo

28、r purchase categoryAn inappropriate strategy can prohibit a win/win relationship.Reasons for Partial SuccessStrategyValue Managed RelationshipsLimited senior management participationLittle cross-functional involvementOver-centralized decision making: Not participative/inclusiveAd hoc structure set u

29、p to implement strategyPartial success can be caused by senior or line organizational inadequacies.Reasons for Partial SuccessOrganizationValue Managed RelationshipsLack of internal and external consensus buildingLack of relentless pursuitSupplier selection not rigorous and fact-basedTechnical oppor

30、tunities not identified up frontLack of systems and structures to perpetuate the processAn incomplete process can also cause limited success.Reasons for Partial SuccessProcessValue Managed Relationships To achieve successful VMRs, there are several areas of potential obstacles to watch out for.Benef

31、its are vague and unqualifiedno “full potential economics analysis has been developed for both partiesProcess ChallengesAssumptions are made by suppliers that VMRs are a one-time trickCommunication ChallengesWatchoutsConcerns about sharing expense and product informationSufficient communication of t

32、he benefits of change throughout both organizationsThere is a lack of understanding and commitment to changing the way business is doneBenefits of the VMR are split in a lop-sided mannerSKU proliferationNo ongoing value realization agenda has been created and/or no VMR champions are empowered to act

33、Organizational barriers (e.g. multi-divisional companies)WatchoutsValue Managed Relationships VMR ConceptVMR Key Success FactorsVMR Sources Of ValueBain VMR ProcessExampleKey TakeawaysAgendaValue Managed Relationships Improved quality due to reduced variabilityImproved communicationsLonger commitmen

34、ts allow for longer run lengthsPurchasing economiesA 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 ValueVolume/ScaleEconomiesValue Engineer

35、ing and Quality Improvement System CostReductionTechnology and capability sharing to create lowest cost, highest value productJoint determination of potential for:material substitutionreduction of material contentstandardization of materialsJoint identification of redundant/duplicate processes, e.g.

36、quality controlorder processingtransportationengineeringmanagement functionsimproved inventory controlCross company logisticssharing of transportation and distribution operations (e.g., leveraged backhaul opportunities, shared delivery runs)Estimate Percent of Total Value Created:25%50%25%Sources of

37、 Value (1 of 2)Value Managed RelationshipsValue engineering and systems cost reduction are most difficult to implement and require the most senior involvment.Source of ValueMethodologyDifficulty of ImplementationSenior Management InvolvementAn open dialogue regarding product design begins to optimiz

38、e design/cost trade-offsValue engineering and quality improvementBuyer and supplier jointly examine current methods of interaction and begin to eliminate redundanciesSystems cost reductionConsolidation of suppliers allows the buyer to negotiate for share of incremental profitVolume/scale economicsSo

39、urces of Value (2 of 2)Value Managed RelationshipsDisguised exampleClientPurchasesCurrentIncrementalClient Volume78%100%0%25%50%75%100%Weighted Average Plant Capacity UtilizationIncrease of 3.2 timesProfitFixed CostsVariableCostsIndustry CostStructureIncrementalClient Volume100%100%0%20%40%60%80%100

40、%Percent of Sales6% Profit ImprovementRelevant Plant Capacity UtilizationIncremental Margin ImpactIncreasing a suppliers utilization by 22% had a 6% profit impact.Volume/Scale EconomiesExampleValue Managed RelationshipsCurrent ProductPrototype A*Prototype B*Prototype C*100100136941369112188050100150

41、Indexed Cost and QualityNew DesignsIndexed QualityIndexed CostValue engineering identified three new product options that increased quality and reduced cost.*Protypes developed jointly with supplierDisguised exampleValue EngineeringExampleValue Managed Relationships Before VMR(5 Quality Control FTEs

42、)After VMR(3 Quality Control FTEs)SupplierCustomerJoint QualityControlCustomerNoImageNoImageNoImageNoImageDirect to packaging operations= QC inspection personnelNoImageNoImageNoImageNoImageNoImageNoImageNoImageIn this example of systems cost VMR, the supplier and Bain client eliminated redundancy an

43、d saved 40% of quality control costs.To packaging operationsOngoing Feedback to VendorSystems Costs ExampleValue Managed RelationshipsSystem CostValue EngineeringVolume/Scale Economics19%0%5%10%15%20%Percent of Total CostsOverall, this client achieved a 19% cost reduction through the VMR example sho

44、wn.Summary of Cost SavingsExampleValue Managed Relationships 1230%20%40%60%80%100%Savings CapturedVolume/price savings and some level of value engineering/ quality benefits are realized very early in the relationshipAdditional value engineering savings and system cost reductions are more likely to c

45、ome laterBain experience has found that the value from VMR is developed over several years.Years into VMRValue engineering and quality improvementSystem cost reductionVolume/price effectTypical TimingValue Managed Relationships VMR ConceptVMR Key Success FactorsVMR Sources Of ValueBain VMR ProcessEx

46、ampleKey TakeawaysAgendaValue Managed RelationshipsIdentify VMR OpportunitiesUnderstand Industry Cost StructureSelect VMR CandidatesObtain Top Management CommitmentIdentify Specific CostReduction OpportunitiesImplement VMR OpportunitiesTrack VMR SavingsSelect products for VMR based on purchasing vol

47、ume and value-addedAnalyze industry economics to develop savings hypothesesAnalyze suppliers to select best VMR candidatesEnsure senior management of client and supplier are fully committedConduct analysis to prove hypotheses and quantify savings opportunitiesFormalize relationship and implement opp

48、ortunitiesTrack progress of savings and relationshipsVMR ProcessValue Managed RelationshipsEXAMPLEIdentify VMR OpportunitiesUnderstand Industry Cost StructureSelect VMR CandidatesObtain Top Management CommitmentIdentify Specific CostReduction OpportunitiesImplement VMR OpportunitiesTrack VMR Savings

49、VMR ProcessValue Managed RelationshipsThis matrix will help you prioritize which opportunities are most appropriate for a VMR.No/Little Opportunity(need to cluster)HighLow LowHighPurchasing Volume(Relative to Total Supplier Sales)Value-Added/Engineered LevelProduct redesignMaterial substitutionVolum

50、e discountSystem cost improvementVolume discountSome system cost Product redesignMaterial substitutionModerate potentialHigh potentialMedium/low potentialPurchasing Category PriorityValue Managed RelationshipsBecause the VMR process is lengthy and time consuming, qualitative issues must also be eval

51、uated in selecting where to implement a VMR.Suppliers and client organizations must be willing towork closely togethercommit management time and effortprioritize success of VMRTop management of supplier and client must have authority to cover full scope of VMRBalance amount of cost savings with leve

52、l of sensitivity associated with product categoryPurchasing Category SelectionValue Managed RelationshipsIdentify VMR OpportunitiesUnderstand Industry Cost StructureSelect VMR CandidatesObtain Top Management CommitmentIdentify Specific CostReduction OpportunitiesImplement VMR OpportunitiesTrack VMR

53、SavingsVMR ProcessValue Managed RelationshipsUnderstanding the industry structure validates opportunities that were identified in the first VMR process step.Industry Cost Structure and DriversIndustry Competitive StructureIndustry Capacity UtilizationHow suitable is this market and its competitive d

54、ynamics for a VMR?How important is the client as a customer in this industry?What is the cost structure of the industry?ExampleQuestions: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 pl

55、ayer?What type of cost savings opportunities might exist?On what factors do key players compete?What drives utilization?Understand Industry StructureValue Managed RelationshipsIdentify VMR OpportunitiesUnderstand Industry Cost StructureSelect VMR CandidatesObtain Top Management CommitmentIdentify Sp

56、ecific CostReduction OpportunitiesImplement VMR OpportunitiesTrack VMR SavingsVMR ProcessValue Managed RelationshipsVMR partners must be able to perform in the relationship and be a willing partner.Potential for low cost positionStrong technology/qualityNew product development track recordAdequate f

57、inancial resourcesLong Term WinnersCapability and Willingness to Develop a PartnershipImportant category for supplierClient important to supplierPartnerships with other suppliersScale to handle volumeParent company supportIdeal PartnersSupplier PrioritizationValue Managed RelationshipsInitial analys

58、is 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 shareStrategyProfitabilityCash flowQuality philosophy and implementationTechnology applicationImportance of clients business t

59、o supplierInitial Supplier EvaluationValue Managed Relationships To further determine whether a specific supplier is a good VMR candidate, evaluate the vendor on a variety of criteria. Quality of ServiceSupplier CommitmentMagnitude of Cost Reduction PotentialLong-Term Leadership PotentialProduct/del

60、ivery/systemsGeographic coverageDedication/dependenceInterest in VMRSystems economicsFlexibility of approachCredibility of plan/resourcesTechnologyScaleFinancialSupplier EvaluationValue Managed RelationshipsPartnership Development ProcessIdentify VMR OpportunitiesUnderstand Industry Cost StructureSelect