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Über dieses Buch

Rapid changes in business along with better informed customers threaten the traditional sales and procurement process. Thousands of sales and procurement people are threatened with extinction, yet all is not destined to be doom and gloom. A new way of partnering between these two roles can, in fact, create significant value for both organizations.
Sales and procurement professionals have a bright future ahead of them if they can respond to six trends that the authors have identified in the business-to-business world. Each trend offers an opportunity to develop a new skill for sales and procurement professionals and adopt a new practice. Because these practices are not yet widely adopted as “best practices”, the authors coin them “next practices.” These trends include: working together to solve complex problems; organizing problem-solving networks across company boundaries; creating processes for live cross-company engagement; facilitating data driven, cross-company interactions fed by digital platforms; providing new personal experiences for individuals and lastly (and most importantly) creating new sources of value for firms.
If these trends are adopted by organizations, the ability to co-create means providing significant value to both the sales management team at the supplier and the purchasing management team at the customer. With the alternative being that these job functions will be replaced by web-based or channel-based alternatives that will do most of what they do today at a fraction of the cost. Increasingly, there is no middle ground anymore. SAMs and senior buyers will either evolve into high value-added sales and procurement professionals, or disappear.



Chapter 1. The Changing World of Sales and Procurement

Let us start with the bad news. Thousands of sales and procurement people are threatened with extinction.
Francis Gouillart, Bernard Quancard

Chapter 2. The Co-Creation Cycle

In Chap. 1, we saw the various trends at play at the intersection of suppliers and customers. Each of those trends poses a specific challenge for strategic account managers (SAMs) and procurement managers. In this section, we show how both parties need to come up with a new model of how to work together in the new environment. We call this model co-creation.
Francis Gouillart, Bernard Quancard

Chapter 3. The Strategic Relationship-Building Process

In the previous chapter we described the cycle of co-creation that takes place between advanced SAMs and high-performing senior buyers. This cycle gets repeated over time between supplier and customer, producing results of increasing magnitude as they build trust with each other. For example, the strategic relationship between Ecolab SAMs and senior buyers, like Rome, was not built in one day. It developed over many years between Ecolab and its customers. In this third chapter, we describe the six steps through which a strategic relationship between a supplier and a customer grows over time.
Francis Gouillart, Bernard Quancard

Chapter 4. The Dream: Discover the Opportunity and Organize Internally

In Chaps. 2 and 3, we saw how the cycle of co-creation unfolds at each stage of the strategic relationship-building process. In this chapter, we start our more detailed exploration of each step, focusing on the first of our six stages: Discover the Opportunity and Organize Internally. In the human relationship metaphor, this constitutes the dream part, the moment where the supplier company imagines the collaboration it could develop with its customer, or vice-versa.
Francis Gouillart, Bernard Quancard

Chapter 5. The Dance: Envision the Value and Assemble a Joint Team

You now have a concept of the value that can be created between the two firms and you have established contact with the other party. In this chapter, we discuss how to engage with each other in practical fashion and jointly envision the value that can be created. The principal focus of this stage is to get organized across both firms and assemble a joint team that will pursue the opportunities that have been identified.
Francis Gouillart, Bernard Quancard

Chapter 6. The Date: Engage as One Team and Connect Emotionally

You have now held your first workshop together and agreed on a forum where both supplier and customer will meet to determine if there is value to be created together. Both parties have agreed to commit investigative resources to the development of a joint project, and there is some expectation that a long-term relationship may develop at the end of this stage. Both supplier and customer have lined up a team, and they now have to figure out how to engage with each other.
Francis Gouillart, Bernard Quancard

Chapter 7. The Commitment: Finalize Value, Negotiate and Close

Ultimately, the role of the SAM is to drive revenues for the firm and the role of the senior buyer is to source competitively In co-creation, the negotiation and transaction aspects do not go away In this chapter, we address the fourth stage of the relationship-building process, i.e., the moment where the partners finally agree on the definition of what value is being created, and negotiate how that value will be shared in a contract between supplier and customer in some form of price, quantity revenue, or cost agreement. Many of the traditional principles of negotiation still apply The main difference with the classic sales and procurement arm-wrestling is that all the work done by the SAM and senior buyer in the previous three phases of the relationship-building process have now led to a rich definition of the value being negotiated, with the number of decision-making or influencing parties larger and the role of data more integral than in classic selling and buying.
Francis Gouillart, Bernard Quancard

Chapter 8. The Long-Term Relationship: Deliver and Document Value

It is the morning after. The SAM has celebrated the sale with her team, and the senior buyer has toasted the new procurement contract. But reality soon sets in; there is a lot of work to be done on both sides. The most immediate task is to carry out all the start-up activities linked to the new contract, with its cohort of transition issues, such as making sure the departing “selling” team shares everything it knows with the delivery team, under the vigilant eye of the procurement team that wants to make sure the supplier is not pulling a bait-and-switch scheme with the A team leaving and being replaced by a B team. It is time for a new phase in the relationship-building process, the fifth and next-to-last phase in our chronology. The pace slows down a little from the frantic rhythm of the final days preceding the contract. The sprinters are replaced by long-distance runners on both sides. The emphasis is now on delivering the value that has been promised and on documenting that value.
Francis Gouillart, Bernard Quancard

Chapter 9. The Family: Expand Value

In Chap. 8, we saw how to track and deliver value after the contract has been signed. In this chapter, we outline how the delivery of demonstrated benefits allows the relationship to grow beyond the initial project and develop into a multi-pronged relationship managed by the SAM and the senior buyer. In our human relationship metaphor, this is the equivalent of the two parents having children, who will themselves beget grandchildren and great grandchildren and continuously enlarge the tribe.
Francis Gouillart, Bernard Quancard

Chapter 10. The Five Levels of Competitive Advantage Yielded by Co-Creation for Sales and Procurement

In the final chapter, we summarize what can be achieved by going through the co-creative relationship-building process we have described in this book. Rather than focus on the process of co-creation as we have done so far, we now review what outcomes or results you should target for your co-creation program. The logic of the process is the same: no matter how ambitious your co-creation program is, the scope of your program will change as a function of how you define the problem, how many people you are prepared to involve in your problem-solving community, how much data you want to look at and how innovative the value model is you are trying to create.
Francis Gouillart, Bernard Quancard
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