Value Managed Relationships Analysis (PowerPoint PPT)

A Value Managed Relationship (VMR) is a full partnership between a customer and a goal is to maximize quality and minimize total system costs of doing business through collaborative sharing of information and resources. This deck has 80 slides and contents include:
•  VMR Concept
•  VMR Key Success Factors
•  VMR Sources Of Value
•  XYZ VMR Process
•  Example
•  Key Takeaways

This comprehensive presentation on Value Managed Relationships (VMR) provides a deep dive into the strategic advantages of VMRs over traditional "arms length" approaches and vertical integration. VMRs foster a collaborative environment where both parties benefit from shared investments and long-term commitments. The deck outlines how consolidating volume in long-term partnerships ensures continued supply for buyers and capacity utilization for suppliers, leading to system-wide benefits and strategic innovation.

The analysis includes real-world examples, demonstrating that VMRs can achieve significant cost savings, averaging between 15% to 20%. The document also highlights that over half of existing partnerships do not meet expectations, emphasizing the importance of understanding and focusing on key success factors. These factors include senior management involvement, cross-functional participation, and clear process champions to drive implementation at the grassroots level.

The VMR process is meticulously detailed, from identifying opportunities and understanding industry cost structures to selecting candidates and tracking savings. The presentation also covers the qualitative aspects of selecting where to implement a VMR, stressing the need for suppliers and clients to work closely together, commit management time and effort, and prioritize the success of the VMR.

Supplier evaluation criteria and configuration alternatives are explored, providing a framework for assessing potential VMR candidates based on service quality, commitment, cost reduction potential, and long-term leadership potential. The document concludes with a focus on value engineering levers and their implications for strategy, ensuring that both clients and suppliers are positioned to drive value engineering ideas and achieve the full potential of VMRs.