Partnership - CRM&M - SCRM

PHMC GPE LLC

the shift in the basis for competitiveness the "service" economy co-production

the "product" economy sequential production basis for competitiveness segmentation

marketing

the customer base

• access to it • maintaining it • broadening the offering

access to technology

access to raw materials before the 20th century

1920s

1950s

1970s

time 1990s

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The growth of the service sector

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75

1992

70

1970 services as a % of GNP 1991

65

increasing marketing costs

60 % 55 50 45 40 USA

Canada

France

Italy

Britain

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Japan

Germany

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who is the most important ?

or the End Customer?

your client? you?

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the new partnershipbuilding From sequential relationships…

supplier

client

From "sales" as the key variable … … to "input" in the client's value-adding process.

… to co-production.

From "supplier" to "partner" adding value to the customer’s offering

the right move

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increasing integration in the client’s production process

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Suppliers are becoming partners Number of PSA'S (Peugeot’s) suppliers 2,000

if you are not one of the 600 suppliers to Peugeot in 1995, then you are excluded from half of the French automobile market

if you cannot gear deliveries to Renault within two days, then you are excluded from the other half

suppliers are reorganizing their production lines based on the "just in time" concept mainly by relocating their plants close to the main carmakers' production units

future products (eg. those forced on auto makers by changes in pollution legislation) are being handled mainly by suppliers

Stocks at one Renault factory

2,000

11 10 days

1,500 1,300

5 days

2.7

1,000

1,000

2

900

1980

1985

1990

1980

1984

1988 1990

source: PSA, RENAULT

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Becoming a privileged supplier means...

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•

being able to keep the clients you have now – Over the last three years, Ford has reduced the number of its suppliers by 45%, 3M by 64% and Motorola by 70%.

•

entering an expensive information technology club – Tesco, a large UK supermarket chain, deals only with suppliers who are part of its automated ordering and payment system – Valeo, Europe’s second-largest auto parts producer, is forced to use the different CAD/CAM tapes of its main clients, 11 automobile producers – Procter & Gamble (consumer goods producer) & Wal-Mart (retailer) invest in a joint IT system to enable better coordination of production and sales

•

helping to perform the R & D function for your clients – GM,BMW and other auto firms push design tasks on to key suppliers (e.g. weight reduction, cooling & noise control)

•

joining with the local champion to access new clients – –

in the US, Ericsson joins with General Electric even though it is the world leader in GSM digital systems joint-venture firms in China must provide technology and export assistance for their local partners

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Value-adding & Co-production

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increasing value-added

adding value to the customer’s offering

higher revenue, greater access to new/more clients

strategic, joint offerings

increasing the value creating potential of your client ("smart components")

increasing the value creating and cost potential of your client (better future offerings)

better quality & cheaper

better production efficiency

substitution within an existing delivery system ("components")

developing the cost/performance of your client's delivery system (better margins)

degree of integration with the customer’s production system Copyright© PHMC GPE LLC 2001-2011 sqq All rights reserved

increasing coproduction

whom you deal with PHMC GPE LLC

increased value-added

the niche firms (most Nordic producers)

large multinationals

higher revenue, greater access to new/more clients

strategic, joint offerings

“technical sales people” adding value to the customer’s offering

“purchasing managers”

whom R&D + top management you deal with production & marketing

better quality & cheaper

better production efficiency

the South East Asians

large regional/national firms

degree of integration with the customer’s production system Copyright© PHMC GPE LLC 2001-2011 sqq All rights reserved

increased co-production

Sources of Client data PHMC GPE LLC

Consultants

Auditors Industry experts

Competitors

Customers

Journalists Information on a target market

Industry associations

Regulatory bodies

Distributors

Ex-employees

Suppliers Local community

“Old boy” networks Banks

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