Alliance Management Consulting
The premier class of management processes and tasks. The ultimate challenge, especially in international alliances, including in the area of procurement cooperation. It requires a shared vision, common goals, and a great deal of motivation, which is why...
“If you want to build a ship, don't drum up people to collect wood, prepare tools, and assign tasks. Instead, teach them to long for the endless immensity of the sea.” (Antoine de Saint-Exupéry)
Alliance Formation, Foundation
Successful alliances depend on effective implementation and integration strategies that align both organizations’ efforts.
For formation of alliances we apply a simple straight forward approach comprising the following steps:
- Identification
- Valuation
- Negotiation
- Implementation
Standart tools are applied to support the collaboration and communication.
Procurement Cooperation Management
For procurement collaboration building the same applies as for other kind of collaborations and alliances.
We, thus, apply the following process for the foundation of common procurement cooperations and the like:
- Identification of goods and services ("commodities") which serve as prospects for cooperation and joint selection based on common requirements and Commodity Business Plans
- Agreement on terms and conditions for commodity-specific cooperation agreements
- Joint requirements engineering regarding functgional and non-functional requirements
- Joint or coordinated terndering and negotiation with suppliers
- Administration of compensation payments to equalize unbalances regarding cost- and worksharing
For this process and for the subsequent ongoing management of the cooperation a joint or at least coordinated supplier management shall be implemented.
Alliance Health-Checking
Following agreement with our customers top executive regarding cooperations to be analyzed, we identify Improvement Potentials (IPs) and analyze a.o. relationships, driving and resulting IPs, carry out SWOT review and analyze causes and effects for such IPs.
For health-checking of alliances we walk you through the following steps:
- Collaboration Status Accounting
- Collaboration Strategy Review
- Implementation Planning, Preparation
- Implementation of Improvement Potentials
Standard tools are applied to support communication and collaboration.
Details
Alliance Management Consulting Services
The devil is in the details ...
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Founding alliances
Successful alliances depend on effective implementation and integration strategies that align both organizations’ effortsImportant Steps for founding alliances are:
Conducting Assessments
We begin by performing thorough assessments to identify potential partners. This process ensures alignment with strategic goals.
Evaluating Compatibility
The evaluation of compatibility between organizations is crucial for a successful partnership. We analyze shared values and objectives.
Identifying Resources
Evaluating the resources available to potential partners helps determine mutual benefits and strengths in collaboration.
Negotiating Terms
The negotiation phase focuses on balancing the interests of both parties to reach a mutually beneficial agreement.
Drafting Agreements
We assist in drafting clear agreements that outline the roles and responsibilities of each party involved.
Roles and Responsibilities
Clearly defined roles and responsibilities help ensure that all parties understand their expectations in the alliance.
Types of Alliances
Strategic Alliances are Part of an Extended Enterprise Continuum
Founding Process
For formation of alliances we apply a simple straight forward approach comprising the following steps:
- Identification
- Valuation
- Negotiation
- Implementation
Standart tools are applied to support the collaboration and communication.
Procurement Cooperations
Commercial Objectives:
Savings Sources
Alliances can generate cost savings from
- Development cost savings
- Economies of scale (quantity discounts)
- In-house processing cost savings
Development cost savings often provide the biggest leverage. They can be guestimated using the following formula:
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Common Procurement Management Process
We apply the following process for the foundation of common procurement cooperations and the like:
- Identification of goods and services ("commodities") which serve as prospects for cooperation and joint selection based on common requirements and Commodity Business Plans
- Agreement on terms and conditions for commodity-specific cooperation agreements
- Joint requirements engineering regarding functgional and non-functional requirements
- Joint or coordinated terndering and negotiation with suppliers
- Administration of compensation payments to equalize unbalances regarding cost- and worksharing
For this process and for the subsequent ongoing management of the cooperation a joint or at least coordinated supplier management shall be implemented.
To support the gutt-feelings or the strategic advantages of possible cooperations we run cooperation candidate commodities by our commodity business plannig process. This creates the basis for decision making, implementation planning and implementation of any new or extended procurement collaboration:
Alliance Health-Checking
Successful alliances depend on effective implementation and integration strategies that align both organizations’ efforts.
Continuous support is essential for ensuring both organizations collaborate effectively and work towards their shared objectives
However, alliances may eventually be run by staff assigned by the founding members to the alliance organisation and the governance bodies of such alliance may not have exactly the same objectives as the founding member boards. Also, they may not achive promised goals.
In such cases we jump in and conduct some health-checks identifying Improvement Potentials, including process-cost reduction potentials and generate propossals for implementation of such Improvements.
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Health-Check Process
We are applying the textbook state-of-the-art process for conducting alliance and cooperation health-checks for you:
