© 2011 Sixhills Consulting LtdAggressive Sourcing achieves cost reduction using nine levers based on the micro-economic understanding of buyer and supplier relationshipsSavings LeversUnderstand ExpensesProductPriceProcess1. Reconfigure Demand Specification2. Understand Supplier Economics3. Redefine Product and Pricing Metric4. Increase Leverage Through Competition8. Implement Process Improvements7. Leverage Technology Developments6. Adjust Price Setting Mechanism5. Unbundle Pricing9. Optimise total supply chainImplications for Relationship MarketersStyle to Adopt• “Responsive”• “Problem solving”• “Attention to detail”• “Focus on ‘Win-win’”• “The enemy is the competition, not the client”• “Play the long game, be prepared to walk”Structure to Build• Rapid response bid teams• Incentives aligned to overall objectives• Global account managementSkills to Learn• Superior negotiation skills• Prepare, prepare, prepare• Long-term relationships development• Cost management• Identifying key influencers• Understanding client economics (including clients-clients)• Understanding own economicsSystems to Develop• Detailed industry intelligence• Holistic customer information• Analysis of return on marketing investment• Innovative dynamic pricing mechanisms (e.g., unbundled relationship management and electronic billing discounts)Perspectives on Business to Business RelationshipsP6
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