Documentos de Académico
Documentos de Profesional
Documentos de Cultura
by Professor Malcolm McDonald Emeritus Professor, Cranfield School of Management 27th October 2009
Agenda
Challenges
Market Maturity
Globalisation Customer/Client power
Challenges
Market maturity
Challenges
Globalisation
Leaders ? 2nd tier Guerrillas Embrionic markets Growing markets New guerrillas
Mature markets
Challenges
Client power
Purchases
(50%) Profit (6%)
Purchasing: adding value to your purchasing through effective supply management Institute of Directors, September 2003
Client power
44
39
Biscuit Manufacturer
From: Profitable Customers, Charles Wilson
Board/ Packaging
Speciality Adhesives
Metal Bearings
t-25
t.o
Client power
15
t-15
t.0
t.-15
t.0
Turnover
Added Value
Potential
% of respondents
100 100 100 64 64 36
Suppliers are still interested principally in volume Whilst they are interested in the potential for added value, most still do not measure account profitability
t-15
29
t.o
7 6 4
1 -3
1 2 Largest 10% of clients 3 4 5 6 7 8 9 10 Smallest 10% of clients 1 2 Largest 10% of clients 3 4 5 6 7 8
-3
-3
LOVE
HATE
High
Sales Potential
Low
How well do you know the real profitability of the top ten accounts?
38
32
27
23 22 21 20 19 19 19 19 18 16 15 13 12 11 10 9 8 6 5 4 3 2 1 1 1 6 6 6 6 6 5 4 3 6 9 10 10 13 15
1
Not at all
9
Totally
From
Sales
Purchasing
Supplier
client
To
Key-Account Co-ordination
Supplier
Information Systems
Information Systems
Supplier Development
client
Strategic Purchasing
SUPPLIER PREFERENCE A T T R A C T I V E N E S S
Development
Nurture Client Expand Business Seek New Opportunities
Core
Cosset Client Defend Vigorously High Level of Service High Responsiveness
Nuisance
Give Low Attention Lose Without Pain
Exploitable
Drive Premium Price Seek Short Term Adv. Risk Losing client
VALUE OF BUSINESS
Source: PMMS Consulting Group
10 < 1% of suppliers
20 600 c. 20% of all suppliers 1, 350 3,000 c. 80% of all suppliers
Strategic Suppliers
Preferred Suppliers
Commodity Suppliers
2. Culture
3. Impact
4. Intimacy
5. Balance
An element of demonstrated commitment from both sides. Readiness for risk taking and sharing of costs. Building trust and, thereby, moving to intimacy.
A
B C
Next 30
Next 55
Large
Medium
Small
Cooperative
Selling company
Buying company
Admin
Board
Admin
Board
KA Mgr
Ops
Ops
Exploratory
Selling company
Directors
Purchasing Manager & Key Account Manager Inbound logistics & Order processing/ client service?
Basic
Buying company
Directors
Production
Production
Co-operative
Accounts
Accounts
Marketing Service
Marketing Service
Selling Company
Buying Company
Interdependent
Integrated
20
0 -20
Integrated KAM
Selling company
Operations Focus Team R&D Focus Team
Buying company
Buyer
Market Research Focus Team
Support Activities Infrastructure Human Resource Management Product & Technology Development Procurement
- Legal, Accounting, Financial Management - Personnel, Pay, Recruitment, Training, Manpower Planning, etc - Product and Process Design, Production Engineering, Market Testing, R&D, etc - Supplier Management, Funding, Subcontracting, Specification OUTBOUND LOGISTICS eg. Finishing Goods Order Handling Despatch Delivery Invoicing etc Primary Activities SALES & MARKETING eg. client mgmt Order Taking Promotion Sales Analysis Market Research etc SERVICING eg. Warranty Maintenance Education / Training Upgrade etc
INBOUND OPERATIONS LOGISTICS eg. eg. Quality Control Manufacturing Packaging Receiving Production Raw Material Control Control Quality Control etc Maintenance etc
Many activities cross the boundaries - especially information based activities such as: Sales Forecasting, Capacity Planning, Resource Scheduling, Pricing, etc
Strategic investment
Selective investment
Low
10-7
6-4
3-0
X weight 15 30 40 15 100
Key Account Selection Matrix Tool - KA Selection Matrix Chart Display Spend: Display Group:
High
Spend with Us National Show Groups Redraw
http://www.TheMarketingProcessCo.com
______________
clients on Chart
ID Name
1 2 3 4 5 6 7 8 9 10 11 12
X
Maximum Spend
2 7
Account Attractiveness
12
10
Alexander Smith $14,000,000 Ash & Williams $13,000,000 College Group $12,000,000 Supplementary F T Group $9,900,000 Harpers Service Elements $7,600,000 Parker $9,400,000 Quality Insurers $16,200,000 Randsome $14,500,000 Royal & Co $6,400,000 Thompson Group $32,000,000 Tudor Rose $8,000,000 Woods $11,500,000
5 1 3 6 8
Low High
11 9
Low
Relationship Stage
Exploratory
X
Integrated
client: College Group Relative client Satisfaction: 0.80 Account Attractiveness: 4.40 Spend
Low
KAM
Cost reduction
Growth
Page 37
KAM high
Account attractiveness
KAM medium
P
KAM low
Low
C
Page 38
Description
Status clients
Star clients
Streamline clients
Very important clients, but the relationship has developed still further, to the level of partnership. The relationship is win-win; both sides have recognised the benefits they gain from working together. clients buy not on price but on the added value derived fro being in partnership with the supplier. The range of contacts is very broad and joint plans for the future are in place. Products and services are developed side-by-side with the client. Because of their large size and the level of resource which they absorb, only a few clients fall into this category. Very important clients (in terms of value). Commit to security of supply and offer products and services which are tailored to the clients particular needs. Price is less important in the clients choice of supplier. Both parties have some goals in common. The two organisations have made some form of commitment to each other. Invest as necessary in these clients in order to continue the business relationship for mutual advantage, but do not over invest. Price is still a major factor in the decision to buy but security of supply is very important and so is service. Spend more time with some of these clients and aim to develop a deeper relationship with them in time. These clients usually want a standard product, off the shelf. Price is the key factor in their decision to buy. The relationship is helpful and professional, but transactional. Do not invest large amounts of time in the business relationship at this stage.
Cooperative
Gaining Advantage
Avoiding Disadvantage
High Potential
Applications which may be critical in achieving future business strategy
Avoiding Disadvantage
Key Operational
Adapted from Professor Chris Edwards, Cranfield School of Management
Support
Marketing
Sales
Mfg.
IT
HR
Logistics
R&D Etc.
KA A
KA B
KA C KA D Etc.
5/5 Compromise Method approach 1/1 The order taker 1 Concern for making the sale 9/1 The pressure salesman 9
Significant differences
Negotiating skills
Key account management is a strategic activity KAM is fashionable, but difficult KAM can develop beyond partnership to synergy
A key account manager needs far more skills than a sales person
KAM needs a client-focused organisation
Appendix
KA Planning Process
The output of the key account planning process ie. The contents of the KA Strategic plan Mission statement Financial summary
Phase 1
Goal setting
Phase 2
Situation review (i) For the customer
Suppliers trading history Buying process Definition of business STEEP analysis summary Market structure summary
Market research Market segmentation Gap analysis Product life cycle analysis Diffusion of innovation Ansoff matrix STEEP analysis Market mapping
Key account opportunities/threats Key account strengths & weaknesses Issues to be addressed Key account assumptions Key account portfolio Summary Key account objectives & strategies Key Account Strategies
Phase 3
Strategy Formulation
Phase 4
Resource Allocation
Resource Requirements/budgets
Forecasting Budgeting