Page 269 - Performance Leadership

258 • Part IV Implementing the Performance Leadership Framework

F igur e 14.1
An Example of a Supermarket Performance Network

Logistics Parent Local
providers company authorities Regulator

External
Consumer warehouses
packaged goods
suppliers
Consumer
Supermarket
Local
suppliers Franchisees

Private
label Pressure
Employees Unions
groups

franchise holders and many transportation tasks might be outsourced
to logistics providers. There are many, many different suppliers.
However, management information is still very inward focused, and
procurement and logistics departments still operate very separately
from each other, leaving opportunities for value-chain integration or
further innovation unused.
Stakeholders for a supermarket include the many suppliers, logistics
service providers, external warehouses, local authorities (e.g., for loca-
tion planning), customers, pressure groups (e.g., lobbying for social
responsibility, healthy products, or other causes), employees, unions,
parent company, and regulators. Figure 14.1 shows a typical perform-
ance network for a supermarket. I will focus on the relationships
between a supermarket and the different types of suppliers it has.

Managing Supplier Relationships

In order to manage a retail performance network, we need to have an
understanding of the following for each stakeholder:

• The nature of the relationship between the stakeholders
• Which level of transparency is needed to be able to collaborate
• Which reciprocal metrics are needed to manage the relationship
• The trust between the stakeholders in order to form a single
value proposition