The Relationship Spectrum by Adam Robinson on Prezi
over time, the evolution of three industrial buyer–seller relationships in mature industrial markets. spectrum of governance structures that characterize indus-. There is a win-win situation, where buyer, supplier and end-customer can all benefit. The . relationship spectrum we probably need a supply relationship at the. Types of relationship, the relationship spectrum, from adversarial to co-destiny. Alternatives to the 'buyer-seller' relationship, including leasing and hiring.
Therefore the supply managers decided to participate in an electronic marketplace, which categorized items neutrally, and free of manufacturer-specific terms Figure 6. In doing so, information about product prices, trade allowances, and consumption became transparent and is now actively being used for negotiation with suppliers.
However, as the used electronic marketplace only facilitates electronic ordering not electronic exchange of information between the hospitals, this is only seen as a first step towards a conversion from a seller's to a buyer's market.
Structuring of business relationships by the use of an electronic marketplace 4. Hence, with the aim of optimizing efficiency of the overall logistical processes two major deficiencies were addressed.
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First, to ease the buying agents of doing unprofitable work e. For this purpose, a desktop purchasing tool was implemented, which contained all product data with the former, hospital-specific denomination of the items not the new classification scheme of the electronic marketplacesince this was one of the key requirements to ensure the acceptability of the solution. To guarantee the consistency of the neutral as well as the hospital-specific product data, a synchronization mechanism between the two databases was needed.
On the other hand, simplicity of handling was another essential requirement. For this reason, the whole ordering procedure on the part of the wards had to be effected on a simple web browser.
By using this tool the search for determined products was significantly simplified and extensive add-on information about products and suppliers provided. As a result, manual ordering was cut down to a minimum. After the implementation of the tool more than 80 percent of the in-house orders were processed electronically.
Second, to enhance the overall logistical processes an interface to the materials management system was implemented. As the incoming goods are registered in the ERP, an important feedback loop for the purchasing department was automated which formerly was done by hand. Due to better information about the reliability of suppliers, stock management and inventory control was improved and the delivery of the needed goods was accelerated, too.
However, another essential feedback loop - the factual use of the delivered material within the medical treatment - still remains unconsidered. Process and information flows after SRM project 4.
D5 - Managing Contracts and Relationships in Procurement & Supply Flashcards Preview
Further evidence from the qualitative interviews revealed that the following practices significantly influenced the project on the business relationship level: One key for success is a thorough analysis of the market in order to understand evolving opportunities and threats as they relate to the strengths and weaknesses of the health care organization.
Before new relationships with hospitals and suppliers are established, market power, potential growth rate, profitability, and cost structure as well as the internal demands have to be explored, and shaped in a concise and clear sourcing strategy. Public sector organizations are differentiated in comparison with their commercial counterparts in the private sector. Therefore performance management in health care is not only aiming at the systematic generation and control of an organization's economic value but also at the optimization of the efficiency and effectiveness of service delivery .
Along with the sourcing strategy, also clearly defined target systems e. With respect to the process and information systems level, the following practices impacted the success of the SRM implementation: After having defined the strategic conditions of the hospital's supplier relationship management, it is important to examine the processes and the infrastructure, which supports the achievement of the strategic targets. For an innovation driven climate in which information and communication technology becomes a strategic enabler for tangible e.
A holistic improvement of SRM not only requires the adaptation of processes and infrastructure "hard change" but also to review the corporate culture "soft change"since the effectiveness and efficiency of a health care organization strongly depends on the ability of the human resources .
As a high degree of flexibility, openness and agility of buying agents, nursing staff, logisticians etc. However, this cannot be developed in the short run. Therefore instruments that convey the required change have to be planned, implemented and communicated already at an early stage. The described case study shows a first attempt for doing so. By exchanging product and supplier information with other hospitals, the purchasing department under study has made the first move to establish strategic aspects of SRM.
The availability of comprehensive and up-to-date product information can definitely enhance the bargaining power of the hospital's purchasing department. However, a more detailed study of the effects resulting from this better information basis has to be conducted in future research.
As in health care the perceptions of the various actors are extremely important to the success of any change effort  and industrial approaches to procurement are rather unusual , a key success factor when implementing the new online product catalog was its simplicity i.
The insights we have gained by our research should be critically reflected by considering the limitations of our approach - a single, exploratory case study of a public-financed hospital - in order to be able to draw the right conclusions and recommendations for future research efforts.
However, to understand the future direction of SRM in health care, researchers need to investigate into more detail today's pressing health care business and health care policy issues, trends in business models of other sectors e.
Thus, building on the results of this contribution, future research needs to be dedicated to deliver and evaluate capable models, methods and instantiations in order to give guidance how to substantiate the implications drawn from the case study. Buchholz, Supplier Relationship Management: Hofstetter, Supplier Relationship Management: Successful Supplier Relationship Management.
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What is Supplier Relationship Management? Slack, The Manufacturing Advantage, London: Mercury Business Books, Smith, The Case Study: Heusler, Supplier Relationship Management: Outsourcing - placing non-core and core?
Service is delivered by the supplier s employees, not our employees. The supplier gets paid, not our employees.
Contracts are usually long-term. The supplier is given a level of control and autonomy over delivery of the service.
Identification of target areas for outsourcing. Clear and unambiguous specifications set. Some organisations may attempt to renegotiate the contract with the supplier rather than take the business back inhouse. What experience have you of insourcing?
Why was the original decision made to outsource? The relationship and management of that function inevitably then changes. Many countries recognise the benefits of co- operation and seek to facilitate it. Many organisations now manage diverse workforces. Students are taught global management. Use letters of credit. Standardisation of goods and services and setting quality standards.
Strategic selling and pricing policies. Promoting corporate social responsibility. What are the key benefits for: SRM is a two-way process in that it should improve the performance of the buying organisation as well as the supplying organisation, and hence be mutually beneficial. CIPS Glossary of Terms 91 Supplier development Taken from course book by Mike Fogg Form of supplier development Percentage of organisations practising this form enhancing working relationships You feel it is time for both of you to get to know each other better, as this should impact positively on the quality of the training.
What are the potential opportunities and the associated costs of developing this relationship?