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1. Nurturing Web-based relationships
Article Summary
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E-procurement has heralded major efficiency gains for users and companies by providing easily accessible product and price information and reducing the number of staff required
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Supplier-customer relationships are no longer underpinned by person-to-person relationships
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Users now have the technology available to procure from whoever offers the cheapest on a simple like-for-like price comparison, without having to consider other areas of value or the impact on existing supplier-customer relationships
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The value of strategic relationships negotiated by purchasing and IT departments is easily lost with users'
newfound ability to easily switch between suppliers. Therefore users need to be encouraged to be loyal to one supplier
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Suppliers can use their e-procurement sites to offer added services such as business information relevant to users. This offers users a clear added value proposition while suppliers have a cost-effective means to create a community of loyal customers
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2. Partner, but they must be the right partner
Article Summary
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Services were supposed to bring IT dealers higher profits
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But even margins in the services business are under pressure
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Base services erode margins earned in higher-value services
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The best solution is to sub-contract base services
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But most potential partners are also competitors
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What can an IT dealer do to resolve the dichotomy?
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3. Shake off your legacy
Article Summary
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It is no longer enough to be a supplier or a partner, you have to be a ‘consultant’
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PCs replaced mainframes, but PC dealers have not replaced mainframe companies in providing strategic business support to customers
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Account managers are responsible for developing the relationships with business managers
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But account managers may not be up to the task
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4. Outsourcing - a marriage made in heaven? Article Summary
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Outsourcing is not always the best option, for the outsourcer, as well as the outsourced
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Disparities in strategy between supplier and customer should be kept in mind
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There are times when out-tasking can be better for both parties
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In the end the relationship should be treated like a marriage, in which the best compromise should be sought
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5. Where is the value in a virtual world?
Article Summary
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Pressure on dealer margins is increasing
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By outsourcing logistics to distributors, resellers have introduced users to a potential new supplier
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In a "virtual" supply operation, buyers expect to negotiate with the party they perceive as the supplier
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How long will buyers allow a dealer to be a cost to them in a commodity market?
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Shrewd buyers will utilise the experience and innovation of the whole supply chain
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6. Contract maturity Article Summary
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In the past, dealers have opted for standard one-year contracts with 90 day release terms, though multi-year contracts have become more popular
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Multi-year contracts, however, do not reflect the ever-changing needs of an evolving business
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The SLA could be the key to a harmonious and long-lasting relationship.
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Use SLA meetings with clients to review the SLA and see if it is meeting the client's business needs
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