1. Supply Relationship Management
Presentation
15 April 2005
SUPPLY RELATIONSHIP MANAGEMENT – PRESENTATION
CONTENT
 INTRODUCTION
 QUESTION – WHAT DO YOU WANT FROM AND WHO IN YOUR
SUPPLY CHAIN?
 BUSINESS NEEDS AND YOUR SUPPLY CHAIN
 PROJECT MANAGEMENT
 NEW METHODS
 PARETO’S MANAGEMENT
 PRATER LTD SUPPLY DEVELOPMENT PROGRESS MONITOR
 SUMMARY

2. Supply Relationship Management
Presentation
15 April 2005
I DO NOT SEE THIS AS A DESCRIPTION OF A SUPPLY CHAIN
MANAGER’S ROLE BUT MORE AS SUPPLY CHAIN IDEAS
BY SAVING MONEY WITHIN PURCHASING £ → WILL GO STRAIGHT
TO THE BOTTOM LINE
ONLY ENCOURAGE BUILDING RELATIONSHIPS WITH POSITIVE
SUPPLIERS AND SUB-CONTRACTORS
THERE WILL BE A REQUIREMENT FOR A COMPETITION CLAUSE AND
A FRAMEWORK AGREEMENT
PRATER LTD SHOULD EXPECT TO SAVE ONE MILLION POUNDS OFF
A POTENTIAL BUDGET SPEND OF FIFTEEN MILLION POUNDS IF THIS
METHOD IS DEVELOPED WITH SUPPLY RELATIONSHIPS
TEAM PLAYERS CRITICAL TO ALLOW CENTRALISATION OF DESIGN,
PROJECT AND PROCUREMENT MANAGEMENT UNDER ONE
DISCIPLINE
THIS WILL ALLOW COHESION WITHIN THE SUPPLY CHAIN AND
CREATE GAPS FOR CONTINUOUS SUPPLY OFFERING THE CORE
BASE OF SUPPLIERS AND SUB-CONTRACTORS CLARITY OF
POTENTIAL ORDERS

3. Supply Relationship Management
Presentation
15 April 2005
EXAMPLES OF THE POSSIBLE PRATER LTD SUPPLY CHAIN
STEELWORK SUPPLIERS / FABRICATORS
Corus
Tubeworkers
Forest fabrications
ROOFING
Kingspan
Sarnafil
Radmat
ALUMINIUM
Sapa
Schüco
Kawneer
GLASS
Solaglas
Pilkington
Glaverbel
CLADDING
ame
Sobra
Kalzip
ENTRANCE SYSTEMS
Dorma
Boon Edam
GU Technologies
ROOF VENTS/BRISE SOLEIL
Colt
Airvent
Levolux

4. Supply Relationship Management
Presentation
15 April 2005
BUSINESS NEEDS
ALINE YOUR SUPPLY CHAIN TO THE BUSINESS NEEDS AND MAKE
PRATER LTD
COMPETITVE
COST EFFECTIVE
COMPLIANT
CONTRACT
= “THE TOTAL BUILDING PACKAGE”
THE BUSINESS NEED - TO TURN THE SUPPLY BASE / PARTNERS INTO
A PRATER ASSET
BY INVOLVING SUPPLIERS AND SUB-CONTRACTORS IN THE DESIGN
ENVIROMENT OF THE BUSINESS USING THEM AS AN EXTENSION OF
YOUR OWN COMPANY WILL BENEFIT ALL BY FORMING NETWORKS AND
LESS LIKELY TO HAVE FUSTRATED SUPPLIERS
BUILDING TRUST WITH THE SUPPLY NETWORK CAN PROVIDE A
SMOOTHER CONTRACT WHICH WILL OFFER GREATER CASH, QUALITY
AND TIME. PARETO’S MANAGEMENT THE 80/20 REVOLUTION
COST CONTROL ON EXPENDITURE DURING THE DESIGN AND
MANUFACTURE ELEMENT OF THE CONTRACT AGAIN BY INVOLVING
THE SUPPLIERS AND SUB-CONTRACTORS AT STAGE 1 IS
FUNDAMENTAL
engineering → estimating → tender → best price
Prater trust – facilitators of opportunities
Prater Order

5. Supply Relationship Management
Presentation
15 April 2005
PRATER PROJECT MANAGEMENT
LESS RELIANCE ON STOCK CONTROL IF SUPPLIER AND SUB-
CONTRACTOR IS INVOLVED AT STAGE 1
SET THE CRITERIA
 TRADING CONDITIONS
 DESIGN CONDITIONS
 ESTIMATING / TENDER PRICES
 ORDERING PROCESS / BESPOKE PURCHASING
 MANUFACTURE / STOCK CONTROL
 ON TIME - NO NONSENSE DELIVERY
 TURNKEY PACKAGES
= A SMOOTH RUNNING PROJECT
 NO RETENTIONS
 NO L&A DAMAGES
 NO LATE LEAD TIMES
= EARLY HANDOVER – CONTRACT BONUSES
= OFF SITE BENEFITS
= BETTER CASH FLOW
= BETTER REPUTATION
RAISE AWARENESS WITHIN THE SUPPLIERS AND SUB-CONTRACTORS
PROVIDES BENEFITS TO ALL FOR THE FUTURE CONTRACTS AND
PROJECTS
trust → involvement → positives

6. Supply Relationship Management
Presentation
15 April 2005
USE NEW METHODS
E AUCTIONING – APPROPRIATE IN CERTAIN CIRCUMSTANCES OK FOR
HIGH VOLUME MATERIALS SUCH AS FIXINGS, MEMBRANE, STEEL
TONNAGE AND MILL ALUMINIUM ONE OFFS WILL NOT BE COST
EFFECTIVE BY BUYING FROM E COMMERCE
HOT DESKING WITHIN PRATER LTD FOR SUPPLIERS AND SUB-
CONTRACTOR ENGINEERS, DESIGNERS AND PROJECT MANAGERS
forming networks and building trust
“PARETO’S MANAGEMENT”
The art of management is partly to select which of the possible
analyses are significant, and to stop wasting time on minor matters of
lesser importance
Whatever your business, search for just two numbers. Identify the 20%
of activities that take 80% of the time: and then the 20% that account
for 80% of total cost (they are often one and the same).
SUMMARY
 TRUST OVER POWER
 SUPPLIERS / SUB-CONTRACTORS BECOME AN EXTENSION AND
INTEGRAL PART OF YOUR OWN BUSINESS
 COST ON PRICE AND AVOID GENERALISATION
 PURCHASING CAN CONTRIBUTE TO THE BUSINESS
 MONITOR SUPPLIERS / SUB-CONTRACTORS WITH “JIT” AND
“KANBAN” DELIVERIES
 CONCURRENT ENGINEERING USE THE SUPPLIERS / SUB-
CONTRACTORS AS A DESIGN RESOURCE
 “THEORY OF VALUE” - CONTRIBUTES TO THE NEEDS OF THE
BUSINESS “WHAT GETS MEASURED GETS DONE”