Developing Long Term Strategic Relationships

1. Developing Long Term Strategic Relationships Randy Hayes

2. Customer / Supplier Relationship • Supplier as an extension of your own company. • Mutually beneficial. • Respectful. • Ethical. • Building long term strategic relationships.

3. Vendors have a different purpose……(Taken from UHC Presentation) • Any representative of a manufacturer or company, including a distributor, engaged in soliciting, marketing, or distributing products or information regarding medications, products, equipment or services. This includes representatives of manufacturers or companies that are already doing business in any capacity. • For Profit vs Non Profit Organizations------ • A business or other organization whose primary goal is making money (a profit), as opposed to a non profit organization which focuses a goal such as helping the community and is concerned with money only as much as necessary to keep the organization operating. • (source: http://www.businessdictionary.com/definition/for-profit-organization.html) • The purpose of making money is to share the profit with the company’s owners (share holders).

4. Supplier Expectations QCDD

5. Quality • Expect that supplier will exceed your expectations for quality of: • Product. • Service.

6. Cost • Pricing • Want most-favored customer pricing • No automatic price increases • Transparency of bundling • Not dependent upon long term lock-ins • Not tied to penalties

8. Cost - Contracting • LONG TERM STRATEGIC PARTNERSHIPS • Transactional vs. Strategic Business Partners • Short term vs long term relationship outlook • Recognize / benefit from value each can provide • Streamlined contracting • Preferred pricing • Increase Market Share • No revenue capture! • Contracts are reflective of mutual partnerships

9. Delivery • Performance expectation. • Past due deliveries. • Allocation. • 2nd source parts list. • Transportation.

10. Development • Supporting current activities / goals. • Introducing new product / efficiencies. • VA / VE • Business technology systems. • Portals

11. Continuous improvement • Measuring core metrics. • PDCA • Supplier responsibility.

12. Supplier Selection • Maintaining approved supplier list. • Quality Rating. • Delivery Rating. • Cost Performance Rating. • Total Performance Rating. • New supplier selection. • Culture • Product experience. • Technology experience. • Industry experience. • MBE

13. Thank you