Transforming Vendor Relationships into Value-Added Partnerships to Improve Net Economic Benefits of a Purchase
Within the last years your company “Commodity Gas”, an industrial gas manufacturer, has declined sales by 35 %, but your market share remained unchanged.
Analysis has surfaced the fact that average prices have declined across all customer sizes. The CEO of the company has asked you to provide a new strategy to convert this unfavorable trend rapidly.
You want a proven strategy that not only improves the profitability but also your market position as the sales leader.
That’s why you asked RapidKnowHow for providing a solution.
Here’s our strategy map for solving your problem rapidly.
Recommended Strategic Actions
Now we’ll outline how to transfer the strategies into actions rapidly:
Leadership Strategy – Value-Adding Partnership Strategy
Start with identifying your value buyers. Just do a short online survey and ask two simple questions:
Providing our product is available on time and in requested quality, what are your buying factors:
– We buy from the lowest price supplier
– We buy from the lowest cost supplier
Companies who buy from the lowest cost supplier, are your target companies for establishing a value-adding partnership.
Transform Vendor Relationships to Value Adding Partnerships
You’ll use a simple formula for calculating the net economic benefits:
Net Economic Benefits: Cost Savings Potential for Clients – Total Cost for You the Supplier
Cost Savings Potential for Clients
- Optimizing Industrial Gas Supply Mode e.g. transferring cylinder supply to liquid dewar supply
- Optimizing Industrial Gas Internal Management Costs e.g. automatic supply, online ordering
- Optimizing Industrial Gas Application Mode e.g. transferring CO2 to Argon Mix Technology
Total Cost for You the Supplier
- Product Costs for Production, Distribution and Sales
- Development Costs for Value Adding Service Solutions
- Training Costs: From Vendor to Strategic Value Adding Partner
Market Goal – Penetrating Value Buyers
Set-up a sales campaign to penetrate value buyers. You’ll offer a FREE calculation meeting to calculate the Net Economic Benefits, using our net economic benefits model.
Applying the Net Economic Business Model is a unique opportunity to position your company as value-adding business partner and your salespeople as competent sales leaders.
Finance – Net Economic Benefits of a Purchase
Measure results from your sales campaign versus your goals. Ask critically:
- What have you achieved?
- Why have you achieved it?
- What are the learning points?
Today we have learned how to transfer vendor relationships into value-adding partnerships with your valuable clients. To your success – Josef
Josef David specializes in creating and implementing innovative digital business strategies. He helps business leaders to turn them into transformation programs rapidly. His focus is on generating quick, but sustainable business results.
Josef has started with digital business strategy creation and implementation in 2000 – 2002 for a global DAX 30 company where he created the digital strategy and led the global digital transformation program consisting of more than 20 e-commerce projects of a post-merger company that generated quick cash flows that financed the program.
Since 2002, Josef has created and implemented dozens of digital strategies and digital projects that generated rapid results. He specializes with his RapidKnowHow platform on transferring your digital gaols into results rapidly by offering :
- Creating innovative digital business models
- Crafting your digital business strategy
- Creating digital business solutions that generate income rapidly