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Who is a Vendor ???. Vendor management and Vendor partner ship. Vendor Partnership. Vendor Partnership. Supplier collaboration ( possible areas for buyer – supplier collaboration. research done among 150 companies within 31industries. Following are the recommendations.

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research done among 150 companies within 31industries

Following are the recommendations

  • Companies should align their SCM systems with strategic initiative
  • and goals E.g.. Partnerships .
  • 2. Select suppliers based on criteria, stretching beyond cost
  • per unit considerations.
  • 3. Certify suppliers partners to establish a common language for
  • communication
  • 4. It is important to constantly refine and improve the manufacturers process
  • 5. Use technology to improve suppliers partnerships. Rather than limiting to
  • only one or two ways of working with the vendor, use a wide array
  • of communication tools

Supplier Management

  • Traditional management
  • Leading supplier management
  • Emerging supplier Management
  • World class supplier management

Traditional suppliers Management

The most basic and primitive type relationship structure …..

  • Lacks relationships –manufacturer dictates the relationship
  • Suppliers are viewed as interchangeable and have
  • frugal relationships
  • No formal evaluation method. Evaluation mostly by the
  • purchasing department and mostly manual
  • 4. Communication one sided and only when absolutely
  • necessary
  • 5.Incomming inspection a routine and a necessity
  • 6. Rejection an order of the day

Emerging Supplier Management

This is the next level

  • Preferred suppliers with limited relationships structure
  • suppliers rating system is not exhaustive but quite
  • detailed
  • 3. Bidirectional communication but mostly related to
  • procurement decisions.
  • 4.Key suppliers provide product certification
  • 5. Site visits, surveys review and other tools that can
  • bring the buyers closer to the suppliers.
  • 6. Limited suppliers consolidation.

Leading suppliers Management

An advanced supplier management type – well defined structure and format

Formal supplier certification

Service level agreements with performance metrics. The relationship goes

Beyond the product and includes the service components that surrounds

the product.

Formal evaluation which is based on scientific principles and where all the

Departments are involved. A transparent system which provides an

input not only To the suppliers but also to the buying company.

Understanding the suppliers cost drivers and incentives.

This helps companies Decide A Price that is encouraging .


World class supplier management

This is the ultimate stage in supplier management – here

both the companies Aim to fight the competitor in the end user market.

The relationship is Mutually dependent and

based on sound communication.

Supplier self certification – evaluates himself and is concerned with becoming

The best and a valuable partner.

Key supplier account management – where the buying company considers

The supplier as key supplier

Strategic relationship based on long term strategy

Inter departmental co ordinations

Systemic performance rating/feedback which is based on a scientific and

systematic system To improve productivity

Two way communication


Supplier management process

  • Supplier relationship management
  • Supplier development
  • Supplier performance management

Supplier Relationship Management

( SRM )

  • Open communication
  • Trust
  • Streamline the process
  • To build relationship
  • Fill gaps between expectations, needs & wants

Supplier development

  • Technological up gradation
  • Training – learning –understanding and implementing improvements in
  • The area of manufacturing technology, raw material up gradation etc.
  • 2. Emotional and psychological up liftment to handle day to day activities
  • 3. Technical and managerial support to take care any exigencies that
  • Can disturb the schedule of .
  • 4. Any other kind of help that will directly/indirectly affect the product being
  • supplied to the company

Human behavior

Assertive - aggressive & submissive



Win – Win


U win – I lose


I lose – U lose

I win

I lose

U Win

U Win


Win – lose

U lose

U lose


Customer Relation and communications

  • Communication is central to any successful relationship.
  • In terms of Customer Relationship
  • Management, communication needs to be consistent and high quality;
  • as determined by:
          • on time
          • focused
          • relevant
          • reliable
          • coherent
          • Importantly also,
  • for
  • effective communications it's the message and meaning
  • that is received that counts

What is Quality Service?

Quality refers to:

The quality of our Establishment – clean, modern and attractive

– a pleasant environment for “Working Out” and working in.

The Quality of our Staff– people who are knowledgeable, friendly and helpful; people who have the ability to perform well and the flexibility to adapt to the challenges of working in a busy environment.

The Quality of our Service – The quality of our services to meet the needs of all our customers.


A person providing the excellent Service and Customer Care :

Care has the following characteristics:

  • A friendly disposition
  • A positive attitude
  • A prompt and appropriate response
  • The ability to identify your needs in that situation
  • A willingness to help
  • A knowledge relating to all products
  • An ability to communicate well
  • A readiness to provide “that little extra something”
  • Courtesy, concern and care

Customer Care and Quality Service is all about:

Treating customers with care, courtesy and efficiency

Following established systems and procedures effectively

Carrying out your job tasks effectively and getting them right first time

Having a positive attitude towards work and customers

Setting high standards for the way you work


Why is it so important?

Customer Care and Quality Service is at the

heart of all good service – oriented organizations.

Whether it is the local sports clubs swimming pools

or an organization like ours, competition is keen.

Customer Care and Quality Service is good for the company.

Customer Care and Quality Service is good for our clients.

Quality Service is good for you!

what skills are needed
What Skills are Needed?
  • Communication – Verbal And Non Verbal
  • Questioning Skills To Gather Information
  • Helpfulness
  • Effective Use Of Body Language
  • Good Product Knowledge
  • Listening Skills
  • Courtesy
  • Effective Complaint Handling Skills
  • Friendliness
  • Problem Solving Skills
  • Objection Handling Skills
problem solving steps
Problem-Solving Steps
  • Recognize that there is a problem
  • Identify the problem
  • Generate alternative solutions
  • Choose among the alternative solutions
  • Implement the chosen solution
  • Evaluate the solution

The Five Why's



Key Supply Account Management

A buying company has a team called KSAM – THEIR JOB IS TO WORK

On building relationship and management

Some of the features - refer page 190


Early KSAM


Partnership KSAM

Strategic KSAM


Stages in the development of a Customer Relationship

The Pre-relationship Stage

The event that triggers a buyer to seek a new business partner.

The Early Stage

Experience is accumulated between the buyer and seller although a great

degree of uncertainty and distance exists.

The Development Stage

Increased levels of transactions lead to a higher degree of commitment and

the distance is reduced to a social exchange.

The Long-term Stage

Characterised by the companies’ mutual importance to each other.

The Final Stage

The interaction between the companies becomes institutionalized.


Stages in the Development of a Key-Account Relationship


Synergistic KAM


Degree of








Nature of customer relationship


A Relationship Life Cycle Model

High cooperation

Low competition










Low cooperation

High competition




Metric = A system of related measures that facilitates the quantification

of some particular characteristic