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Question 1

SRM definition

Answer 1

all-inclusive approach to managing affairs and interaction with the organizations that supply your company

Question 2

SRM include…

Answer 2

-communication
-business practices
-negotiations
-methodologies
-software
that are used to establish and maintain relationship with a supplier

Question 3

Benefits of SRM

Answer 3

lower costs better forecasting less tension between the two pasts –> result: win win relationship

Question 4

who create supplier relationships?

Answer 4

companies that need each other mid to long term, by people that trust each other

Question 5

Why create SRM

Answer 5

• less and less diferentiating factors
• costs are going up
• Margins are bein squeezed
• copying in a record speed
• innovation and access to external -ideas and support are keys for future success
• Markets are dynamic –> average change over time
• developing and investing into mutual trust can increase your result and efficiency

Question 6

Industry analyss (characteristics)

Answer 6

• Applicable to any market
• helps structuring and analyzing market information
• identifies magnitude, owners and drivers of power
• predicts market development
• help to drive this knowledge into tactics & strategy to gain a competitive advantages in that industry

Question 7

Industry analysis (critical steps)

Answer 7

scope: define your market
Facts: Gather data (raccolta)
Organize the data and describe the industry

Question 8

Market definition

Answer 8

where buyer and sellers meet to trade
Markets fundamentals describe tha status and dynamics between offers and demander –> market have P&Q at which buyers and sellers trade

Question 9

Why are market dynamics

Answer 9

• seasonal change
• feddstock impacts (oil)
• laws / legal restriction
• PR / suitability (Greenpeace)
• From local to global
• technologies / Patent
• Management change in companies strategies
• Human behavior
• Economic developments (crisis)
• Weather or other catastrophes

Question 10

Sourcing strategy development

Answer 10

• Data analisys (internal & external environment)
• Strategy development phase
• Approval & renewal phase

Question 11

Data analisys

Answer 11

Assessment of Business needs and capabilities (key needs, what rules and guideline follow? what expectation do we need to meet? what are we good/poor at doing??

Assessment of supplies industry (industry analysis, supplier analysis, competitive analysis)

Macro economic (PEST political, economical, social, technological) / cost analysis (currency / economy, supplier / industry costs structure, Make vs. Buy

Question 12

Strategy development phase

Answer 12

Goals: desired result
Options: what sourcing options do we have? SWOT
intervention types: market, technical, cost structure, supplier, internal work process intervention,
Cost / benefit analysis
Tactic WWWWW HH (competition, collaboration, negotiation, SRM choices

Question 13

Approval & Renewal Phase

Answer 13

• Write it down! strategy tactic document
• keep the analysis data for future reference

Renewal:
-Check whether: business needs shifts, Industry/market/supplier change, Result gaps exist, Time/Sequences is appropriately followed.

Risk considerations

Question 14

Risk Taking

Answer 14

Making decision where you don’t have all the data or when heavy emotion makes predictability low

Question 15

Risk mitigation

Answer 15

take steps to lower the risk before taking action

Question 16

Risk management

Answer 16

once you’ve take a risk, monitors and adjust to reduce the risk after taking action

Question 17

Tipe of Risks

Answer 17

Market: prices volatility, supplier changes, industry shifts

Business: Volume volatility, project uncertainty, profit pressures

Physical: supply availability, supper quality, force major

Operational: fraud / hackers, interla controls, Mistakes, misundestanding

Question 18

Negotiation

Answer 18

interactive process of discussion with the goal of influencing the behavior of other to reach a satisfactory agreement and to build a long term competitively advantageous relationship –> win win

Question 19

Process of negotiation

Answer 19

Strategy –> plan –> negotiate –> Execute

Question 20

Iceberg model

Answer 20

Position
Issues
Interests

!!! before negotiate spend a lot of time at the interest level –> think double

Question 21

Planning negotiation

Answer 21

From a sourcing strategy must flow --> 
SOURCING TACTICS --> may flow -->
DECISION TO NEGOTIATE --> must flow --> 
NEGOTIATION STRATEGY --> must flow -->
NEGOTIATION TACTICS

Question 22

Negotiation: Strategy

Answer 22

Fundamental framework for negotiation –> statement summarizing and highlighting the basic concept and themes

To succeed a negotiation strategy must have an articulable right to succeed and absolute internal agreement

Question 23

Negotiation: strategy: planning essential elements

Answer 23

What you have to think before starting a negotiation

• Goal (ours/theirs)
• Motivators /issues
• Powersources
• BATNA (best alternative to a negotiated agreement)
• Bargaining Area (dove si può trovare un accordo)
• Tradeoffs / concessions
• Strategy
• Tactics
• Initial position
• Assumption /question / info needed

Question 24

Who should open

Answer 24

the other party because you don’t know what they are gonna say