A Business Lens on SRM
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1 A Business Lens on SRM Microsoft Troy Kendrick Supplier Relationship Management DENVER FALL 2014 SU MMIT
2 Evaluation How-to: Why? Your feedback drives SIG Event content By signing and submitting your evaluation, you are automatically entered into a prize drawing How? Option 1: App 1. Select Schedule 2. Select Schedule by Day 3. Select Day 4. Select Session 5. Scroll to Description 6. Click on the Evaluation link Option 2: Browser 1. Go to 2. Select Session (#24) DENVER FALL 2014 SU MMIT
3 A Business Lens on SRM
4 First, A Test
5 Experts do worse!
6 You get the call: You re an expert on working with suppliers. You ve done a great job and everyone respects you. We know that SRM is important, we want you to design and run a program. We re all counting on you. Go!
7 Vendor Management Reflex Build: Spend Analytics Approved Vendor List Controls Benchmarking Governance Performance Management Success Metrics: Compliance Cost Saves Vendor Count
8 You get the call: You re an expert on working with suppliers. You ve done a great job and everyone respects you. We know that SRM is important, we want you to design and run a program. Why is SRM Important? Do your leaders know why it is important?
9 Understand your customer s business, how they make money, where their painpoints are, when and how they budget and how they are organized. Get to know your customer s organization and the people within it. Who reports to whom? Who has decision making authority? Get to know them personally. Every touch point from anyone in your company with someone at your customer needs to be captured; birthday, spouse, kids, sports, office politics. Will leaders at your customer network you to other decision makers in their organization? Will they help you better navigate their company? Leverage all that you know to show them how you can help them. You ve learned about their business, their budget, their pain-points and they know you personally, tell them how you can help them succeed. Are you better than your competitor? If you ve done this better, then you are. Now you are the incumbent, an insider, a trusted advisor. You have to maintain these relationships and cycle back through these steps to make sure that you see their changing priorities coming. If not, your competitors will and they will achieve what you will lose.
10 Vendor Management Reflex Build: Spend Analytics Approved Vendor List Controls Benchmarking Governance Performance Management Success Metrics: Compliance Cost Saves Vendor Count
11 Understand your supplier s business. Who are their customers? What will they take away from your relationship into the market? What could they bring to you from their market experience? How do they make money? What have you learned about the account managers, executives and engagement team of your suppliers? How will you organize that information? What will you send yourself and your executives into a discussion or negotiation with? Will they be as prepared as your supplier? What can you learn about your competitors and your supplier s competitors from your supplier? Where else have they worked? Who is doing what where? Leverage all that you know to show them how you can help them. You ve learned about their business, their budget, their pain-points and they know you personally, tell them how you can help them succeed. Are you better than their other customer? If you ve done this better, then you are. Have you developed an account plan for your supplier, the way they have for you? How will you keep them investing and innovating after the contract(s) is signed? How will you remain their customer of choice?
12 A Business Lens on SRM Strategic Balanced Informed Healthy Knowledge & Capabilities
13 Questions and Dialogue
14 Supplier Relationship Management
15 Session #24 A Business Lens on SRM Speaker: Troy Kendrick Microsoft troykend@microsoft.com DENVER FALL 2014 SU MMIT
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