Relationship Portfolio Analysis

1
Relationship Portfolio Analysis

• Lecture 5

2
Why Portfolio Analysis?

• Main Aim resource allocation
• Communication tactics
• IT integration
• grouping strategies
• Determining issues
• Manage relationships to improve branding and
  credibility

3
Limitations of Portfolio Analysis

• See Table 2 Zolkiewski and Turnbull
• Measures
• Too complex
• Too simple
• Subjectivity
• Costings
• Interdependencies
• Lack of guidance
• Lack of dynamics

4
How are measures gathered?

• See Leek, Turnbull Naudé
• Different industries use different tools
• Meetings
• Formal Documented Systems
• Personal judgement
• Differences between manufacturing and services
• Differences between buyers and suppliers

5
Applying a Portfolio Model

• Concentrate this section on Olsen and Ellram
• Step 1 Analysis of transactions
• Develop measurable factors that describe the
  strategic importance of the transaction
• Table 2 gives it for suppliers what would be
  the factors influencing the strategic importance
  of the client?
• Competence Economic Image Others
• Apply weightings see appendix

6
Step 1 continued

• Factors describing the difficulty of managing the
  purchase situation
• Product characteristics supply market
  characteristics environmental characteristics
• Should these change for a client portfolio
  system?
• What factors would you include for client
  portfolio analysis?
• Figure 1
• Weightings

7
Strategies

• Figure 1 Olsen and Ellram
• Each quadrent will require different strategies
• Strategic
• Bottleneck
• Leverage
• Non-critical

8
Step 2 Analysis of relationships

• Relative Attractiveness
• What are some factors for relative attractiveness
  of clients?
• Financial Economic Performance Technological
  Organisational Cultural Strategic Others
• weightings
• Strength of Relationship
• What are some factors for strength of
  relationship with clients?
• Economic Type Cooperation Distance
• Weightings

9
Step 3 Action Plans

• Merge the two types of analysis when developing
  plans
• Add resources
• Maintain resources
• Remove resources

10
Different Models

• See handouts for different models
• Kraljic
• Fiocca 1982
• Turnbull and Zolkiewski 1997