Table Of ContentLeading and Managing Strategic M Strategic Management Collection
THE BUSINESS O
EXPERT PRESS Suppliers XH John A. Pearce II, Editor
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DIGITAL LIBRARIES
Richard Moxham M
EBOOKS FOR Strategic suppliers provide critical products and services to their
BUSINESS STUDENTS
clients. In a production environment, if the supply chain for crit-
Curriculum-oriented, born-
ical components breaks down and delivery dates are missed, the Leading and
digital books for advanced
production line may stop. If an IT supplier fails to deliver key
business students, written
system development projects on time, the implications for the
by academic thought
business can be catastrophic. With the growth of outsourcing,
leaders who translate real- Managing
where entire business functions are delegated to a supplier, the
world business experience
into course readings and dependency on them is further increased; with offshoring there
reference materials for are additional complexities. An organization’s ability to man-
Strategic
students expecting to tackle age its strategic supplier base effectively is central to its per-
management and leadership formance, competitiveness, and future success.
L
challenges during their This book provides practical guidance on the knowledge and E
A Suppliers
professional careers. skills required for managers whose role involves the management D
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POLICIES BUILT of the relationship with and the performance of strategically G
BY LIBRARIANS important suppliers. Although the focus is on the management A
N
(cid:127) Unlimited simultaneous of suppliers during the live relationship, the approach is holistic D
usage as the entire supplier management process is discussed in detail M
A
(cid:127) Unrestricted downloading using a Supplier Lifecycle model. There are fi ve stages—identify N
and printing A
the business requirement, research the supply market, carry out G
(cid:127) Perpetual access for a procurement and supplier selection, integrate and transition to IN
one-time fee G
the new supplier and their services, and manage the delivery of S
(cid:127) No platform or T
maintenance fees the products and services for the contracted period. R
A
(cid:127) Free MARC records T
Richard Moxham is a training consultant working in the spe- E
(cid:127) No license to execute G
cialist area of supplier management skills development. Sensing IC
The Digital Libraries are a S
that for many managers the move from leading in-house teams to U
comprehensive, cost-eff ective P
managing external suppliers is a challenge, he works in develop- P Richard Moxham
way to deliver practical L
ing and facilitating learning workshops on this topic for corpor- IE
treatments of important R
ate and public sector clients. Before moving into consultancy and S
business issues to every
training, his business career was in sales and marketing, followed
student and faculty member.
by time in operations management, where he gained experience
managing technology suppliers. His employment was mainly
with U.S.-owned multinationals, including Nielsen, Proctor and
For further information, a Gamble, Xerox, and Commerce Clearing House Inc.
free trial, or to order, contact:
[email protected] Strategic Management Collection
www.businessexpertpress.com/librarians
John A. Pearce II, Editor
Leading and Managing
Strategic Suppliers
Leading and Managing
Strategic Suppliers
Richard Moxham
Leading and Managing Strategic Suppliers
Copyright © Business Expert Press, LLC, 2019.
All rights reserved. No part of this publication may be reproduced, stored
in a retrieval system, or transmitted in any form or by any means—
electronic, mechanical, photocopy, recording, or any other except for
brief quotations, not to exceed 250 words, without the prior permission
of the publisher.
First published in 2019 by
Business Expert Press, LLC
222 East 46th Street, New York, NY 10017
www.businessexpertpress.com
ISBN-13: 978-1-94819-866-0 (paperback)
ISBN-13: 978-1-94819-867-7 (e-book)
Business Expert Press Strategic Management Collection
Collection ISSN: 2150-9611 (print)
Collection ISSN: 2150-9646 (electronic)
Cover and interior design by S4Carlisle Publishing Services Private Ltd.,
Chennai, India
First edition: 2019
10 9 8 7 6 5 4 3 2 1
Printed in the United States of America.
Abstract
Strategic suppliers provide critical products and services to their clients.
If the supply chain for key components breaks down and the compon-
ents do not arrive on the contracted just-in-time (JIT) date, then the
whole production line may stop. If an IT supplier fails to deliver key
system development projects on time, the implications for the effective-
ness of core business processes can be catastrophic. With the growth of
outsourcing, where whole business functions are delegated to a supplier,
the dependency on them is further increased. When the outsource is to a
supplier in a different geography, remote from the client, the additional
complexities and challenges of outsourcing—for example, remote com-
munications, different cultures—must be managed. An organization’s
ability to manage its strategic supplier base effectively is central to its per-
formance, competitiveness, and future success.
This book provides practical guidance on the knowledge and skills
required for managers whose role involves the management of the re-
lationship with and the performance of strategically important suppli-
ers. While the focus is on the management of suppliers during the live
relationship after procurement, the approach is holistic as the entire sup-
plier management process is discussed in detail using a Supplier Lifecycle
model. The model describes five clear stages—identify the business re-
quirement for the services to be provided, research the supply market,
carry out procurement and supplier selection, integrate and transition to
the new supplier and services to the organization, manage the delivery of
the products and services for the contracted period, including the sup-
plier responses to changing customer needs.
Key words
strategic suppliers; outsourcing; offshoring; supplier management; sup-
plier relationship management; service delivery management; supplier
lifecycle; supplier performance management; managing cross-cultural
supplier relationships
Contents
Acknowledgments ...................................................................................ix
Chapter 1 Introduction .....................................................................1
Chapter 2 Definitions, Lifecycle, and Key Themes .............................9
Chapter 3 Defining Requirements ...................................................17
Chapter 4 Research ..........................................................................25
Chapter 5 Sourcing Overview ..........................................................41
Chapter 6 Contract Knowledge and Supplier Background ...............55
Chapter 7 Internal Stakeholder Management ...................................69
Chapter 8 Establishing the Working Code .......................................77
Chapter 9 Cross-Cultural Working ..................................................87
Chapter 10 Supplier Communication and Influencing ....................109
Chapter 11 Performance Review and Development .........................129
Chapter 12 Operational Negotiation ...............................................145
Chapter 13 Managing Changing Requirements ...............................163
Chapter 14 Handling Conflicts and Disputes ..................................173
Chapter 15 Keeping the Supplier Engaged .......................................183
Chapter 16 Managing the Exit .........................................................191
Chapter 17 Summary, Key Messages, Summary of Reading List,
and Other Resources .....................................................199
About the Author ................................................................................209
Index .................................................................................................211
Acknowledgments
The contents of this book are based on the knowledge and experience
I have built up in my business career, and latterly, in the last 15 years,
facilitating supplier manager workshops for many clients, involving, over
the period, hundreds of participants. While my role in those workshops
was to facilitate learning, the interactive nature of the events, and the dis-
cussions with participants, all of whom were involved in managing suppli-
ers, meant that the learning was not just one way—I learned a lot from the
people I met. So, my acknowledgment and thanks to those people, far too
many to mention by name, who are unknowing contributors to this book.
More specifically, my thanks to Martin Webb of Value Dynamics,
who I worked with closely on a major public sector engagement some
time ago. We exchanged knowledge and experience, and Martin has
kindly given me permission to include some of his thinking in the con-
tent. Also, my thanks to Loes Hasain-Cornelissen of Geert Hofstede BV
for her support and guidance in refining and finalizing the content of the
chapter on cross-cultural working. In addition, I would like to express my
gratitude to the people and organizations that contributed to the content
by granting permission to reference their published works.
Finally, I would like to acknowledge the support of my wife, Susan,
and Sarah, my daughter. Sarah kept me focused by relentlessly remind-
ing me of the deadlines I had set myself and was, at times, in danger of
missing. Susan became the quality control manager, frequently critiqu-
ing my terminology and grammar and demonstrating the highest level of
proofreading skills.
