Page 273 - Performance Leadership

262 • Part IV Implementing the Performance Leadership Framework

Table 14.1 ( C ontinued)

Transactional Relationship Added-Value Relationship Joint-Value Relationship
Supermarket Requirements from Supplier
Cheap • Margin • Cost savings • Price difference
• Price flexibility for through value chain with CPG brands
promotions integration
Easy • Customer service • Level of logistical • Crossover resources
responsiveness and administrative
integration
Supermarket Contributions to Supplier
Profit • Fair profit • Revenue and margin
joint initiative as %
of overall revenue
and profit in product
category
• Margin benchmark
against CPG margins
Growth • Percentage of • Percentage of
revenue of supplier growth of revenue
within product within product
category category
Opinion • Supermarket • Continuous
satisfaction operational
feedback
• Support calls on • Continuous
integrated management
processes feedback
Trust • Growth of using • Growth in
added value investment in joint
services initiative
• Growth of revenue • Brand reputation/
within product value
category

stakeholder contributions and requirements are based on the per-
formance prism methodology discussed in Chapter 12.

Managing Transactional Relationships
The metrics for managing transactional relationships with suppliers are
very traditional. The speed of service (fast) is measured in terms of
replenishment frequency—in other words, how many times per week