L4M6 Supplier Relationships Module syllabus content

Supplier relationships

Supplier Relationships

1.0 Understand the dynamics of relationships in supply chains

1.1 Differentiate between different types of commercial relationships in supply chains

  • Internal and external relationships
  • The relationship spectrum
  • The relationship life cycle

1.2 Appraise portfolio analysis techniques to assess relationships in supply chains

  • Matrices to identify supply, supplier and purchaser positioning
  • Developing action plans




1.3 Identify the competitive forces that impact on relationships in supply chains

  • Sources of competitive advantage
  • Competitive forces: sources of competitive rivalry, bargaining power of buyers and suppliers, threat of new entrants and potential substitutes
  • STEEPLE factors that impact on supply chains (social, technological, economic, environmental, political, legislative and ethical)

1.4 Compare the sources of added value that can be achieved through supply chain relationships

  • The link between relationships as a process and the achievement of added value outcomes
  • Sources of added value: pricing and cost management, improving quality, timescales, quantities and place considerations in procurements from external suppliers
  • The link between organisations in supply networks




2.0 Understand processes and procedures for successful working with stakeholders

2.1 Analyse the purpose of organisational procedures and processes in sourcing goods and/or services

  • Achieving value for money
  • Supplier identification, assessment and selection
  • Selection and awarding criteria

2.2 Compare team management techniques to ensure positive stakeholder relationships

  • Positive relationships through positive contributions
  • Overcome resistance
  • Identify conflict and coping processes
  • Cross-organisational teams
  • Stages of team development – forming, storming, norming, performing

2.3 Compare the practical considerations of stakeholder management

  • Accurate cost modelling
  • Reduced impact of price fluctuations
  • Early supplier involvement in product and/or service development
  • Knowledge transfer and access to innovation
  • Common metrics to drive change for both organisations
  • Improve risk management and continuity of supply

2.4 Identify the processes for terminating stakeholder relationships

  • Reasons for termination
  • The process of termination
  • Timing
  • Relationship impacts – amicable vs. hostile
  • Legal considerations – finances, confidentiality, IPR, security, employee rights
  • Succession issues – continuity of supplies




3.0 Understand the concept of partnering

3.1 Analyse the concept of partnering and where it is a suitable approach

  • The three types of partnering
  • Partnering vs. ‘traditional’ contracting agreement
  • The drivers for partnership sourcing
  • Advantages for purchaser and supplier
  • High spend
  • High risk
  • Technically complicated supplies
  • New services
  • Fast-changing technology
  • Restricted markets

3.2 Appraise the process of partnership implementation

  • Identify items potentially suitable for partnership sourcing
  • ‘Sell’ the philosophy to senior management and other functions of the organisation
  • Define the standards that potential partners will be expected to meet
  • Establish joint commitment to the partnership
  • Reviews and audits

3.3 Identify the reasons why partnerships fail

  • Poor communication
  • Lack of senior management support and trust
  • Lack of commitment by one or both parties
  • Poor planning
  • Lack of value-added benefit
  • Changes in the market
  • Corporate cultural differences
  • Logistics and distance barriers




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