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Welcome to the Strategic Sourcing and Procurement Group Members Webinar




Accredited Qualification in Supplier Relationship
  Management (SRM) Certification Program

Speakers:
       Tim Cummins – CEO, IACCM
       Martin Chalkley – SRM Consultant, IACCM

Moderator
       Sundar Kamakshisundaram

19 September, 2012
                        Copyright © 2011 IACCM. All rights reserved.
Agenda

Introduction

The Need for Good Supplier Relationship Management

Overview of the SRM program

Q&A




                    Copyright © 2011 IACCM. All rights reserved.
                           Copyright © 2012 IACCM. All rights reserved
‘Troubled relationships’ = disappointing
               outcomes

    Research suggests that                                     The likelihood of
       commercial issues                                           significant
 are the primary cause in ~70%                                   innovation or
    of ‘troubled relationships’                               incremental value
                                                                  reduced by
                                                                     ≥ 60%



So achieving improvement is important
                Copyright © 2011 IACCM. All rights reserved.
                       Copyright © 2012 IACCM. All rights reserved
What is the scale of loss or potential gain?




              Copyright © 2011 IACCM. All rights reserved.
                     Copyright © 2012 IACCM. All rights reserved
From Administration to Relationship
         Management




          Copyright © 2011 IACCM. All rights reserved.
                 Copyright © 2012 IACCM. All rights reserved
Developing from role to capability

                                                                              Organisational
                                                                              learning;
                                                                              continuous
 Organizational Capability                                                    improvement

                                                       Ongoing
                                                       collaborative
                                                       learning
                                                                              Network
                       Baseline common
                       knowledge and                                          internally and
                       methods                                                externally to
                                                                              raise
                                              Learn and apply                 effectiveness
                                              best practices in
      Learn                                   contracting over
      collaborative                           lifecycle
      values –
      learning
                             Benchmark skills vs.
      community              the market

                Learn                                               Individual Capability
                collaborative
                values –
                individual
                        Copyright © 2011 IACCM. All rights reserved.
                                Copyright © 2012 IACCM. All rights reserved
Why SRM now?

• SRM is emerging as an important business activity & professional discipline within
  major organizations globally

• Research evidence suggests that SRM can deliver significant tangible benefits in
  addition to those achieved through world-class strategic sourcing, negotiation, and
  contract and performance management

• Despite this potential, investment in SRM training remains limited and there has not
  been an internationally recognized qualification that denotes excellence in this area

• Relationship management requires a blend of technical capabilities – for example, in
  process and organizational design, and structuring of appropriate contracts and
  future-facing measurement systems – and key behavioral competencies such as
  communication, influencing and trust building

• The IACCM program equips SRM practitioners with the core skills and knowledge
  they need to develop successful, collaborative customer-supplier relations



                            Copyright © 2011 IACCM. All rights reserved.
                                   Copyright © 2012 IACCM. All rights reserved
What does SRM do?

• Manages all aspects of the inter-company relationship

• Builds trust through open communications

• Seeks to develop successful, collaborative relationships with key
  suppliers

• Has ready access to, and influence from the top levels of
  management




                      Copyright © 2011 IACCM. All rights reserved.
                             Copyright © 2012 IACCM. All rights reserved
Interactive Applied Learning

• Focus on best practices

• Webinars – facilitated knowledge sharing and learning

• Case studies – apply learning to realistic business
  situations

• Message boards – knowledge sharing and application
  of learning to real life situations

• Attachments library – constantly updated access to
  articles and cases, best practices
                 Copyright © 2011 IACCM. All rights reserved.
                        Copyright © 2012 IACCM. All rights reserved
SRM curriculum
                                                             Introduction
                                                                to SRM                 Defining
                                          Summary                                     SRM and its
                                                                                        Value

                                                                                                        Who are
                                Exit
                                                                                                         your
4 months e-learning          Strategies
                                                                                                       suppliers?
program                                                                                                                   Flexible learning
                                                                                                              Understanding
                                                                                                                 the Base
                 Personal                                                                                      Principles for
                attributes                                                                                      Delivery of
                                                                                                                Your SRM
                                                                                                                 Program

  1 module                                                         SRM                                                          Skills
  per week                                                                                                                      assessment
                                                                                                                  The
                 Culture and                                                                                    Business
                   Ethics                                                                                       Case for
                                                                                                                  SRM



1-3 hours per week                                                                                                        Certification
                             Balanced                                                                   Creating the
                             Scorecard                                                                  Agreement         at Practitioner
                                                                                                                          or Expert
                                                                                        Implementing                      level
                                          Measuring                                       your SRM
                                           Success                                        program
                                                               Governance


                                          Copyright © 2011 IACCM. All rights reserved.
                                                 Copyright © 2012 IACCM. All rights reserved
28 competencies in SRM
Mandatory                                                         Business Acumen
Commitment to Change and Personal Development                     Analytical
Communications                                                    Familiarity With Standards and Norms
Interpersonal Relationships                                       Financial Principles and Impact of Issues /
Leadership                                                        Decisions
Negotiation                                                       Risk Management
Teamwork                                                          Ability to Direct Deal Shaping and Commercial
Time Management                                                   Strategy
                                                                  Awareness of Commercial and Contract Terms
Knowledge of Employer / Industry                                  & Conditions
Knowledge of Products and Services
Understanding of Goals and Strategies                             Technical
Understanding of Organization / Management System                 Performance Monitoring and Reporting
/ Business Processes                                              Vendor Analysis and Selection

Relationships                                                     Cultural Considerations
Stakeholder Management                                            Ability to Motivate / Gain Agreement in Multi-
Influencing Others                                                Cultural Teams
Understand Market Industry and Norms                              Knowledge of Local Business and Commercial
                                                                  Practices
Business Contribution                                             Sensitivity to and Knowledge of Cultural
Commitment to Results / Strategic Thinking                        Considerations and Impacts
Identifying / Acting on Opportunities for Change                  Understanding Geopolitical Conditions
Value Focus
                                    Copyright © 2011 IACCM. All rights reserved.
                                           Copyright © 2012 IACCM. All rights reserved
IACCM – A global network

•   over 8,000 organizations from 128 countries
•   29,000 individual & 200+ corporate members
•   25% at director level or above
•   equal divide of buy-side and sell-side – legal, commercial, procurement

                                                               Transport, Logistic        Aerospace, Defen
                                                                       s                         ce                          Automotive
     IACCM Geographic Profile                                        3%                         8%                               1%
                                                                                                                  Banking, Ins'ce,Fi
                                                                         Telecom
                                                                                                                       nance
                                                                           9%
                                                                                                                        4%

          Asia-                                                 Software & Info               Business Services
                                                                     Serv                       & Consulting
        Pacific, 20
                                                                     15%                            14%           Retail,Consumer
            %                                                                                                            2%
                       Americas,
                                                                                                                   Engineering &
                         41%
        Europe, Mi                        Public Sector &                                                           Construction
                                                                    Other                                               6%
           ddle                            Government
        East, Africa                            5%                   7%           Oil & Gas             Health Care Equip
                                                                                     15%                     & Serv
          , 39%                                                                                                4%
                                                       Manufacturing &                              Legal
                                                        Capital Goods                                4%
                                                             3%

                                   Copyright © 2011 IACCM. All rights reserved.
                                          Copyright © 2012 IACCM. All rights reserved
IACCM professional development today
World-class organizations investing in learning for 4710 people




                  Copyright © 2011 IACCM. All rights reserved.
                         Copyright © 2012 IACCM. All rights reserved
Q&A
Please Post Your Questions In the WebEx Chat Box




            Copyright © 2011 IACCM. All rights reserved.
                   Copyright © 2012 IACCM. All rights reserved
Thank You



 Copyright © 2011 IACCM. All rights reserved.
        Copyright © 2012 IACCM. All rights reserved

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Webinar Slides - Accredited Qualification in Supplier Relationship Management

  • 1. Welcome to the Strategic Sourcing and Procurement Group Members Webinar Accredited Qualification in Supplier Relationship Management (SRM) Certification Program Speakers: Tim Cummins – CEO, IACCM Martin Chalkley – SRM Consultant, IACCM Moderator Sundar Kamakshisundaram 19 September, 2012 Copyright © 2011 IACCM. All rights reserved.
  • 2. Agenda Introduction The Need for Good Supplier Relationship Management Overview of the SRM program Q&A Copyright © 2011 IACCM. All rights reserved. Copyright © 2012 IACCM. All rights reserved
  • 3. ‘Troubled relationships’ = disappointing outcomes Research suggests that The likelihood of commercial issues significant are the primary cause in ~70% innovation or of ‘troubled relationships’ incremental value reduced by ≥ 60% So achieving improvement is important Copyright © 2011 IACCM. All rights reserved. Copyright © 2012 IACCM. All rights reserved
  • 4. What is the scale of loss or potential gain? Copyright © 2011 IACCM. All rights reserved. Copyright © 2012 IACCM. All rights reserved
  • 5. From Administration to Relationship Management Copyright © 2011 IACCM. All rights reserved. Copyright © 2012 IACCM. All rights reserved
  • 6. Developing from role to capability Organisational learning; continuous Organizational Capability improvement Ongoing collaborative learning Network Baseline common knowledge and internally and methods externally to raise Learn and apply effectiveness best practices in Learn contracting over collaborative lifecycle values – learning Benchmark skills vs. community the market Learn Individual Capability collaborative values – individual Copyright © 2011 IACCM. All rights reserved. Copyright © 2012 IACCM. All rights reserved
  • 7. Why SRM now? • SRM is emerging as an important business activity & professional discipline within major organizations globally • Research evidence suggests that SRM can deliver significant tangible benefits in addition to those achieved through world-class strategic sourcing, negotiation, and contract and performance management • Despite this potential, investment in SRM training remains limited and there has not been an internationally recognized qualification that denotes excellence in this area • Relationship management requires a blend of technical capabilities – for example, in process and organizational design, and structuring of appropriate contracts and future-facing measurement systems – and key behavioral competencies such as communication, influencing and trust building • The IACCM program equips SRM practitioners with the core skills and knowledge they need to develop successful, collaborative customer-supplier relations Copyright © 2011 IACCM. All rights reserved. Copyright © 2012 IACCM. All rights reserved
  • 8. What does SRM do? • Manages all aspects of the inter-company relationship • Builds trust through open communications • Seeks to develop successful, collaborative relationships with key suppliers • Has ready access to, and influence from the top levels of management Copyright © 2011 IACCM. All rights reserved. Copyright © 2012 IACCM. All rights reserved
  • 9. Interactive Applied Learning • Focus on best practices • Webinars – facilitated knowledge sharing and learning • Case studies – apply learning to realistic business situations • Message boards – knowledge sharing and application of learning to real life situations • Attachments library – constantly updated access to articles and cases, best practices Copyright © 2011 IACCM. All rights reserved. Copyright © 2012 IACCM. All rights reserved
  • 10. SRM curriculum Introduction to SRM Defining Summary SRM and its Value Who are Exit your 4 months e-learning Strategies suppliers? program Flexible learning Understanding the Base Personal Principles for attributes Delivery of Your SRM Program 1 module SRM Skills per week assessment The Culture and Business Ethics Case for SRM 1-3 hours per week Certification Balanced Creating the Scorecard Agreement at Practitioner or Expert Implementing level Measuring your SRM Success program Governance Copyright © 2011 IACCM. All rights reserved. Copyright © 2012 IACCM. All rights reserved
  • 11. 28 competencies in SRM Mandatory Business Acumen Commitment to Change and Personal Development Analytical Communications Familiarity With Standards and Norms Interpersonal Relationships Financial Principles and Impact of Issues / Leadership Decisions Negotiation Risk Management Teamwork Ability to Direct Deal Shaping and Commercial Time Management Strategy Awareness of Commercial and Contract Terms Knowledge of Employer / Industry & Conditions Knowledge of Products and Services Understanding of Goals and Strategies Technical Understanding of Organization / Management System Performance Monitoring and Reporting / Business Processes Vendor Analysis and Selection Relationships Cultural Considerations Stakeholder Management Ability to Motivate / Gain Agreement in Multi- Influencing Others Cultural Teams Understand Market Industry and Norms Knowledge of Local Business and Commercial Practices Business Contribution Sensitivity to and Knowledge of Cultural Commitment to Results / Strategic Thinking Considerations and Impacts Identifying / Acting on Opportunities for Change Understanding Geopolitical Conditions Value Focus Copyright © 2011 IACCM. All rights reserved. Copyright © 2012 IACCM. All rights reserved
  • 12. IACCM – A global network • over 8,000 organizations from 128 countries • 29,000 individual & 200+ corporate members • 25% at director level or above • equal divide of buy-side and sell-side – legal, commercial, procurement Transport, Logistic Aerospace, Defen s ce Automotive IACCM Geographic Profile 3% 8% 1% Banking, Ins'ce,Fi Telecom nance 9% 4% Asia- Software & Info Business Services Serv & Consulting Pacific, 20 15% 14% Retail,Consumer % 2% Americas, Engineering & 41% Europe, Mi Public Sector & Construction Other 6% ddle Government East, Africa 5% 7% Oil & Gas Health Care Equip 15% & Serv , 39% 4% Manufacturing & Legal Capital Goods 4% 3% Copyright © 2011 IACCM. All rights reserved. Copyright © 2012 IACCM. All rights reserved
  • 13. IACCM professional development today World-class organizations investing in learning for 4710 people Copyright © 2011 IACCM. All rights reserved. Copyright © 2012 IACCM. All rights reserved
  • 14. Q&A Please Post Your Questions In the WebEx Chat Box Copyright © 2011 IACCM. All rights reserved. Copyright © 2012 IACCM. All rights reserved
  • 15. Thank You Copyright © 2011 IACCM. All rights reserved. Copyright © 2012 IACCM. All rights reserved