Description

1.0  Understand the dynamics of relationships in supply chains

1.1  Differentiate between different types of commercial relationships in supply chains

• Internal and external relationships
• The relationship spectrum
• The relationship life cycle

1.2  Appraise portfolio analysis techniques to assess relationships in supply chains

• Matrices to identify supply, supplier and purchaser positioning
• Developing action plans

1.3  Identify the competitive forces that impact on relationships in supply chains

• Sources of competitive advantage
• Competitive forces: sources of competitive rivalry, bargaining power of buyers and suppliers, threat of new entrants and potential substitutes
• STEEPLE factors that impact on supply chains (social, technological, economic, environmental, political, legislative and ethical)

1.4  Compare the sources of added value that can be achieved through supply chain relationships

• The link between relationships as a process and the achievement of added value outcomes
• Sources of added value: pricing and cost management, improving quality, timescales, quantities and place considerations in procurements from external suppliers
• The link between organisations in supply networks

2.0  Understand processes and procedures for successful working with stakeholders

2.1  Analyse the purpose of organisational procedures and processes in sourcing goods and/or services

• Achieving value for money
• Supplier identification, assessment and selection
• Selection and awarding criteria

2.2  Compare team management techniques to ensure positive stakeholder relationships

• Positive relationships through positive contributions
• Overcome resistance
• Identify conflict and coping processes
• Cross-organisational teams
• Stages of team development – forming, storming, norming, performing

2.3  Compare the practical considerations of stakeholder management

• Accurate cost modelling
• Reduced impact of price fluctuations
• Early supplier involvement in product and/or service development
• Knowledge transfer and access to innovation
• Common metrics to drive change for both organisations
• Improve risk management and continuity of supply

2.4  Identify the processes for terminating stakeholder relationships

• Reasons for termination
• The process of termination
• Timing
• Relationship impacts – amicable vs. hostile
• Legal considerations – finances, confidentiality, IPR, security, employee rights
• Succession issues – continuity of supplies

3.0  Understand the concept of partnering

3.1  Analyse the concept of partnering and where it is a suitable approach

• The three types of partnering
• Partnering vs. ‘traditional’ contracting agreement
• The drivers for partnership sourcing
• Advantages for purchaser and supplier•
• High spend
• High risk
• Technically complicated supplies
• New services
• Fast-changing technology
• Restricted markets

3.2  Appraise the process of partnership implementation

• Identify items potentially suitable for partnership sourcing
• ‘Sell’ the philosophy to senior management and other functions of the organisation
• Define the standards that potential partners will be expected to meet
• Establish joint commitment to the partnership
• Reviews and audits

3.3  Identify the reasons why partnerships fail

• Poor communication
• Lack of senior management support and trust
• Lack of commitment by one or both parties
• Poor planning
• Lack of value-added benefit
• Changes in the market
• Corporate cultural differences
• Logistics and distance barriers