This document discusses how suppliers can align their marketing and sales approaches with the evolving needs of B2B customers. It suggests that suppliers mirror the purchasing strategies of clients, which involve cascading objectives down from company strategy to category and supplier levels. The document also emphasizes that customers increasingly value innovation and solutions over individual products, and that suppliers should find ways to help customers reduce risks through guarantees and contracts.

1. B2B PROCUREMENT PERSPECTIVE
What content are customers waiting for?
manu.matthyssens@solvint.com

2. Page 2
Bringing your marketing & sales approach in a pro-active way
in line with the purchasing evolution of your client base
Supplier sales mirror Client purchasing Mirror

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Purchasing strategy – cascade
Company strategy
Objectives & KPIs
Purchasing strategy
Objectives & KPIs
Category strategy
Objectives & KPIs
Supplier
Objectives & KPIs

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Impact towards purchasing
• xx
• xx
• xx
• xx
• xx
• xx
1
2
3
Business
strategy
Purchasing
strategy
Supplier/SCM
strategy

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A great opportunity to build sustainable/solution/LT business
www.solvint.com

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Purchasing growth path
Commercial
orientation
Transaction
orientation
Process
orientation
Supply chain
orientation
Value chain
orientation
Procurement
coordination
1 2 3 4 5 6
Functional focus Cross functional focus
Contribution
to competitive
advantage
Time
From Price to Cost focus From TCO to Value focus
Availability Price Synergy XF Sourcing Integration Value
Transactionally
integrated
Internally
integrated
Externally
integrated
Source: Van Weele & Rozemeijer

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Evolution towards solutions !

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four rings of innovation
business model innovation
product & service innovation
process innovation
technology innovation
SUPPLIERS
ARE THE
KEY TO
INNOVATION !
Turnover ratio

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A significant portion of our growth will come from
innovation, delivering leading-edge products into the
marketplace. We anticipate that around half of this
innovation will come from our supply chain.
That's why we invest in mutually-beneficial relationships with our key
suppliers so we can share capabilities and co-innovate for shared
growth. With some of our more strategic suppliers, we nurture open
relationships, with our research and development teams working with
theirs to jointly pursue new technologies and innovations that will make a
difference.
Our partners often do business with other companies that operate in the
same competitive markets as we do. That's why we pride ourselves on
doing business differently, moving away from traditional forms of
buying/selling relationships. Pioneering new ways of doing business so we
can partner to win.
If you believe you can help us deliver on innovation please contact your
Unilever Procurement Manager to discuss opportunities.
http://www.unilever.com/aboutus/supplier/innovation/
Innovation
partners

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Safety supply case
Impact on .....................
PRODUCT + SERVICE
innovation

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Home office
employee
Head office
Flex workspace
Flex rent, parking
with recharger 1
CNG filling station
Regional
office
Fuel(card) station
CNG - Electricity
Bike station
with facilities
Railway
station
Railway
station
abonnement
Company
bike
Company
car
Cambio spot
Customer
‘billing’
Business model
innovation

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6/05/2015
WHAT KIND OF INNOVATIONS/BUSINESS
CASES/BEST PRACTICES
CAN YOU BRING IN A PROACTIVE WAY
TOWARDS PROFESSIONAL BUYERS?

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Other costs
40 mio
Purchasing
60 mio
Turnover
105 mio
Total costs
100 mio
Profit
5 mio
Turnover
105 mio
Margin
4.7 %
Turnover
105 mio
Total assets
50 mio
Rotation
speed
2.1
ROI
9.9%
* 58.8 mio
98.8 mio
* 6.2 mio
* 5.9 %
12.4%
+25%
1
2
3
RONA
ROCE
HOT SHOWER
Or
COLD SHOWER
4
Dupont

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Specification/
requirements
Purchase
Price
Material Cost
Supplier
Labour cost
Supplier
Overhead
Profit
Transport Usage Maintenance Logistics Resell
Total Cost of Ownership
Product Value Engineering
•Improved (cost-down)
Purchase specifications
•Input for internal cost
reductions.
•Support for Proposal
Evaluation.
•Basis for cost based targeting
•Input for outsourcing dilemmas
•Negotiation Arguments
•Input for supplier cost
reductions.
•Support for Proposal
Evaluation.
•Basis for cost based targeting
•Input for outsourcing dilemmas
Total cost of ownership

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OPEN KIMONO
www.solvint.com

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What is value for your customer?
-OUTPUT/DELIVERABLE/SOLUTION-
 Know how combined with results
 Resources delivering
 Expertise combined with results
 First time right
 Speed: time to solution, time to market
 Customer trends / wants
 Technology
 Product/Spec improvement, development & Innovation
 Impact on customer responsiveness
 Prototyping
 Quality
 Cfr Toyota 5 years warranty
 Back to back coverage
 Production continuity

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What is value? Some examples
 Product offering
 One stop shop
 Product + service
 Solution
 Reducing need for internal follow up/resources
 Flexibility
 Avoidance of capital tied up
 Resulting in lean cash flows
The ultimate value
Direct contribution to sales results

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WHAT IS YOUR OUTPUT PROMISE
SPECIFICATION
REQUEST FOR
INFORMATION
REQUEST FOR
PROPOSAL
CONTRACTING
SUPPLIER
MANAGEMENT
NEGOTIATION
Deliverables
KPI’s
VALUE
UPFRONT SLA
TRADITIONAL SOURCING PROCESS
OUR NEEDS
OURSPECS ?

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Companies need ‘Solutions’ & clear output
not just ‘specs’ and products or services

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What are the key remaining risks for your customers?
How to cover this?
guarantees & contract

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Bringing your marketing & sales approach in a pro-active way
in line with the purchasing evolution of your client base
Supplier sales mirror Client purchasing Mirror

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