Strategic Supplier Alliances And Supplier Relationship Management

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Strategic Supplier AlliancesAndSupplier
Relationship Management

• Carol Martin
• Strategic Alliance Manager
• 05 December 2002

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DLAs Challenge
TODAY Functional Orientation Supply
Management Inventory Management Transaction
Focus Contract Centric Transaction Based
GOAL Focus On Suppliers Manage Supplier
Relationships Right Size Inventory Material
Management Partnering Arrangements Performance
Based
BSM Concepts
Strategic Supplier Alliances
Transactional Procurement
Supply Chain Management
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What Is A Strategic Supplier Alliance?

• Established Customer/Supplier Partnerships
• Transcends Individual Purchasing Transactions
• Leverages Customer Purchasing Power and Knowledge
  With Supplier Capabilities
• Develops A Joint Strategy/Team Approach To
  Identify Improvement Opportunities
• Forges A Relationship That Fosters Innovative
  Contracting And Supply Solutions That Will Create
  An Integrated Value Chain
• Delivers A Superior Return On Relationships For
  All Involved Parties

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Alliance Development

Membership
Identified For SSA
SSA Initiation
- Charter - Goals
- Improvements -
Metrics
SSA Interest Letter Sent To Contractor
Initial Meeting to Discuss
SSAs If Contractor Interested
Contractor
SSA Discussion With Military Services
Military Service Identify
Candidates For Participation
Military Services
SSA Candidates Provided To Stakeholders (For
DSCR Managed SSAs)
Stakeholders Identify SSAs
For Participation And Level
Of Involvement
DSCC/DSCP Additional Stakeholders (DCMA, DoDIG)
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DLA Alliance Management

• Strategic Alliance Manager
• Serves As DLAs Single Point Of Contract For
  Major Suppliers
• Directs Continuous Improvement Activities Within
  The DLA Organization And With Strategic Supplier
  Partners
• Maximizes Strategic Relationships And Manages
  Strategic Supplier Alliances On Behalf Of DLA
• Manages Or Participates In Strategic Supplier
  Alliances Expanded Beyond The DLA/Supplier
  Relationship

DSCR Supplier Operations
Supplier Relationship Management
OEM Division
Strategic Alliance Manager
Contractor 1 Integrated Supplier Team
Contractor
SSA Steering Group
Military Services
STRATEGIC
TACTICAL/ STRATEGIC
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SSA Value To Supplier

• Better Knowledge And Understanding
• Longer Term Commitments
• Well Defined Formal Relationship
• Leveraging of Shareholder Strengths
• Shared Innovations And Technologies
• Common Goals And Targets of Opportunity

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Discussion Points

• How Can We Improve Communication?
• How Can We Grow These Alliance Relationships?
• What Can We Do To Make Things Easier For You?
• What Can You Do To Make Things Easier For Us?
• BOTTOM LINE Collaboration
• WIN WIN Relationship