wk 5 Procurement relationships Flashcards
Three parts of relationship management
Analysis - determining what relationship already exists
Investment - cost of establishing management
Benefit
three contexts of relationships
business to business
business to individual
individual to individual
balance of procurement relationships depend on
balance of power between demand and supply of the relationship
ways of working
value of benefits - commercial intentions of each party
what are the 4 power types in the table?
buyer dominance
interdependence high high
independence low low
supplier dominance
what type of power relationship exists in the case study
initially interdependence as the companies grew up together and relied on each other
goes to buyer dominance as crown has the choice of different suppliers. However could be supplier dominance as RS has al the designs. Crown are dependent on RS
4 ways of working in the table
adversarial arms length - inequal share of value - short term max profit
adversarial collaborative - inequal share of value - better relations
Non adversarial arms length - negotiated contract
Non adversarial collaborative - shared profits long term
what way of working is used in the case study
non adversarial colab - both companies prioritize maintaining a long relationship shared benefit
could be adversarial as crown ultimately made the profit
6 types of value of benefits from the table
Buyer arms length
Reciprocal arms length
Seller arms length
Buyer collaborative
Reciprocal collaborative
Seller collaborative
what type of value of benefit fits with the case study
Reciprocal collaborative - long term and close working
what is the 30R model?
30 types of relationship, split into;
Mega, special, classic, nano
what is a mega relationship?
establishes economy wide patterns that govern society
examples of mega relationships
lathan reports - mega marketing
channel tunnel project - alliances
two types of special market relationship
monopoly relationship
customer as a member
example of a monopoly relationship
ready mix concrete
two types of classic market relationships
classic dyad
classic triad
two types of nano relationships
internal customer
matrix relationship
what is a matrix relationship
dual management from project manager and line manager
conflict of competing demands
needs clear line of responsibility
what level of relationship is in the case study
monopoly - niche market & rs hold specific designs
also nano as there is a tight knit bond. no clear line of responsibility
case study - what steps to take to establish, monitor and control the operation?
introduction of new managers - fitch - more of a special market relationship
in house designers - nano relationship
better integration and tighter communication - controls risks
