For long, many companies have discovered the virtue of partnering. When they
don't have all the skills or resources needed to truly delight
customers, it makes sense to partner with a company that can contribute
those missing pieces.
Wal-Mart and Procter & Gamble (a key Wal-Mart supplier) are among the firms that have made this discovery. The challenge is in getting two (or more) different and separate entities to act as a single aligned enterprise in the interest of shared customers. By making their processes and systems seamless in service to those customers, two parties can create greater value for customers and for themselves.
These two giant companies knew that they weren't serving customer needs as well as they should. Each considered how they could work together to do better. To explore that question, they facilitated a meeting in which 30-some senior people from the two companies entered into a dialogue. They quickly realized that each had different ideas about what Wal-Mart customers wanted.
As the Wal-Mart people saw it, customers wanted everyday low prices with no sales, promotions or coupons. The P&G people held the opposite view. These two perspectives explained in part why the companies were failing to optimize their relationship in service of Wal-Mart shoppers. Through a partnering dialogue, the two parties agreed on policy and process changes that would better align their efforts and deliver greater value to customers and to themselves. Those changes resulted in a 300% increase in P&G sales through the giant retailer over an 18-month period. And, of course, those sales were rung up on Wal-Mart cash registers.
Partnering like this can take the supplier-customer relationship to a new and higher level and improve each partner's work processes. This is also a key factor for hotels, restaurants, lodges, etc. and more so in their relationship with procurement companies. Working together as a long term partner rather than a short term business relation the (financial) benefits for both parties will improve tremendously.
Here are some questions that you and your partners should ask one another in order to work together more effectively:
The company contact asked the hotel, "If I can change my pricing based on the weekly commodity price of coffee, will you pay me a slightly above-market price for it?" The deal was agreeable and the math worked out favorably for both parties.
Below are a few more tips for partnering with external and internal customers:
(source: smartbrief.com)
Wal-Mart and Procter & Gamble (a key Wal-Mart supplier) are among the firms that have made this discovery. The challenge is in getting two (or more) different and separate entities to act as a single aligned enterprise in the interest of shared customers. By making their processes and systems seamless in service to those customers, two parties can create greater value for customers and for themselves.
These two giant companies knew that they weren't serving customer needs as well as they should. Each considered how they could work together to do better. To explore that question, they facilitated a meeting in which 30-some senior people from the two companies entered into a dialogue. They quickly realized that each had different ideas about what Wal-Mart customers wanted.
As the Wal-Mart people saw it, customers wanted everyday low prices with no sales, promotions or coupons. The P&G people held the opposite view. These two perspectives explained in part why the companies were failing to optimize their relationship in service of Wal-Mart shoppers. Through a partnering dialogue, the two parties agreed on policy and process changes that would better align their efforts and deliver greater value to customers and to themselves. Those changes resulted in a 300% increase in P&G sales through the giant retailer over an 18-month period. And, of course, those sales were rung up on Wal-Mart cash registers.
Partnering like this can take the supplier-customer relationship to a new and higher level and improve each partner's work processes. This is also a key factor for hotels, restaurants, lodges, etc. and more so in their relationship with procurement companies. Working together as a long term partner rather than a short term business relation the (financial) benefits for both parties will improve tremendously.
Here are some questions that you and your partners should ask one another in order to work together more effectively:
- What do you really need from me?
- What do you do with what I provide you?
- Are there gaps between what I give you and what you need?
- What problems might I help you with?
- Am I providing things you don't need?
- What are the possibilities of standardizing between our companies?
The company contact asked the hotel, "If I can change my pricing based on the weekly commodity price of coffee, will you pay me a slightly above-market price for it?" The deal was agreeable and the math worked out favorably for both parties.
Below are a few more tips for partnering with external and internal customers:
- Bring guests and customers into your organization to meet face-to-face with people other than the ones they usually do business with.
- Ensure that meetings whose purpose is to improve processes include representatives of the affected functions.
- Map each major process' value chain to identify internal suppliers and customers as well.
- Then bring them together with the goal of better understanding each party's requirements and how each can add greater value.
About Hospro
HOSPRO|Hospitality Procurement prides itself on being a bit different. Traditional values are sustained and a good reputation is something to be proud of. Good business is building lasting relationships, helping us to grow our assets together. With a background in international hospitality and procurement services for some 30 years, our combination of market knowledge and expertise ensures the best possible service for our business relations. We support our clienteles with specific recommendations and references to stay focused on the total process.(source: smartbrief.com)
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