A short workshop on how to manage business relationships and get them working for you.

1. Business Relationship Management

2. Business Relationship Management
Supply Chain Relationships:
“Supply Chain Management by definition is about
the management of relationships across complex
networks of companies that whilst legally
independent are in reality interdependent”.
Prof Martin Christopher Cranfield University

3. Business Relationship Management
Supply Chain Relationship Management
 Supply Chain is clearly about Relationships across
organisational boundaries
 Supply Chain Relationships are built up of a
number of components:
– Trust
– Communication
– Commitment
Cooperation
3 Behaviour
–C
Coordination
– Openness
Collaboration

Relationships can be measured see www.sccindex.com

4. Business Relationship Management
Trust
Trust in a business context is made up of two
elements:

Intent
– Do I believe that they intend to do what they say they
will do?

Competence
– Do I believe they are capable of doing what they say
they will do?
Trust is also impacted on by “Openness” and
“Commitment”

5. Business Relationship Management
Communication:
• There is no such thing as too much communication.
• However you need to be talking to the right people.
Logistics
Logistics
I.T.
I.T.
Old Model
Finance
Finance
Manufacturing
Purchasing
Sales
Quality Control
Manufacturing
Quality Control
Marketing
Collaborative
Model
Marketing
Logistics Logistics
I.T. I.T.
Purchasing Sales
Finance Finance
Manufacturing
Manufacturing
Quality Control
Quality Control
Marketing Marketing

6. Business Relationship Management
Biggest Challenge in Business
Relationships is –
“Who Are They?”
Remember its P2P not B2B

7. Business Relationship Management
Touchpoint Mapping
• Is a process for understanding how well you interact with your supply
chain partners
• Are the contacts at the right level? (Who talks to the MD?)
• Are there missing touchpoints? (We don’t know anyone in Engineering!)
• Allows you to set a communication plan for keeping the contact live.
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8. Business Relationship Management
Customer Touchpoint Categories

Decision Maker
–

Approver
–

These are the people that initiate the process of awarding business and are closely
aligned with the hands on activities involved with executing day to day business
between the parties..
While not involved in day to day activities the Approver role is critical to success
because they have the ability to approve or block the recommendations received
from the Decision Maker.
Influencer
– These are people not in the direct line as far as allocating new business or setting
the agenda on relationships. They are however influential or persuasive in
modifying or enhancing the relationship

Gate Keepers
– Gate Keepers have very little role in the direct business activities between the
parties but they can hinder the relationship by preventing access to people or
information that can assist the firm win business or improve the relationship.

9. Business Relationship Management
Touchpoint Categories
Initiates Action
Passes or
Blocks Action
Direct
Involvement
in Business
Allocation
Decision Maker
Approver
Purchasing
Manager
Finance
Manager
Indirect
Involvement
in Business
Allocation
Influencers
Gate Keeper
Engineering
Manager
Receptionist
Exercise:
• For your biggest client nominate the contacts you
know and allocate them into the above matrix
• Discuss any gaps with your partner

10. Business Relationship Management
“Relationships with business
partners are important but I just
don’t have time to do it properly!”

11. Business Relationship Management
Spreading The Load in Relationship Management
Logistics
Logistics
I.T. I.T.
Purchasing Sales
Finance Finance
Manufacturing Manufacturing
Quality Control Quality Control
Marketing Marketing
There are perhaps unrecognised
opportunities to enlist others
(formally) in managing relationships

12. Business Relationship Management
Supplier Touchpoint Categories

Contactors
– Are the main people involved in service delivery and are the main “custodians” of the
relationship. They need to be very conscious of the impact they have on the
company’s image with their trading partner and be clear on the “marketing message”
they are putting over.

Modifiers
–

Influencers
–

These people can have a major influence on the company’s image with customers.
Not so much in forming the image but either amplifying it or detracting from it.
These people while not in day to day contact are a key part of the service delivery
process. As such they may be contacted by the customer when things have gone
amiss. How they respond can have a very significant impact and can “make or
break” the relationship.
Isolates
–
While Isolates have irregular contact and no role in service delivery they should not
see themselves as being uninvolved in the process of Relationship Management.

13. Business Relationship Management
Supplier Touchpoint Categories
Involved In
Service Delivery
Not Involved In
Service Delivery
Contactors
Irregular
Contact
Customer
Service/Order
Entry
Accounts
Receivable
Clerk
Influencers
Regular
Contact
Modifiers
Isolates
Production
Managerr
Financial
Accountant
Exercise:
• For your business nominate internal staff that could be in
contact with customers & allocate them into the matrix
• Discuss with your partner are they trained & supported to
undertake these contacts? Do they understand their role?

14. Business Relationship Management
Three Forms of Supply Chain Collaboration
1. Vertical (Chain)
External
(Suppliers)
External
Internal
External
(Complementary
Companies)
(Own Company)
(Competitors)
3. Network (Vertical
& Horizontal)
2. Horizontal
External
(Customers)
• All forms are possible (even competitors)
• Practically Internal Collaboration can be the most difficult

15. Business Relationship Management
Timing,
discipline &
“follow up”
are critical to
a good
Relationship
Contact Plan
Create
Meetings
Annual
Calender
Spread meetings out to avoid “clumping”
“
”
Relationship
Owner Creates
Meeting Plan
Meeting Plan includes Business Reason for meeting,
arranging timing and attendees. Key point is to
create follow on reason for next meeting (possibly
“
“report back on project of some sort)
Relationship
Owner Briefs
EE attendees
attendees
Meeting attendees from should be
aware of all current issues, business awards and
project status. If a response is required it should be
agreed in principle who should respond
Meeting Held
Meeting minutes should be taken. Attendees should
take opportunity to expand understanding of the
relationship, motivations and opportunities. The data
cards for each contact can be updated appropriately
Minutes
Published &
feedback
provided
Objective is to maintain engagement in between
meetings. Commitments made should be honoured. If
possible the agreed time/date for the follow up meeting
should be noted

16. Business Relationship Management
Contact Plan
Name
Role
Grid Position
Contact Owner
Relationship
Contact Frequency
Business Reason
Plan
Action