Relationship Spectrum

Relationship Spectrum

1. Adversarial Relationship

   • Perfect Competition (Win/Lose)
     • Disadvantages
       • No added value
       • Short term only
     • Advantages
       • Best outcome (5 Rights)
       • Quick get out

2. Arms Length

   • Framework (Infrequent)
     • Advantages
       • Low risk
       • Not business critical
     • Disadvantages
       • Dispute resolution
       • Lacks rapid response (not key buyer)

3. Transactional

   • Repeat Business
     • Advantages
       • Know what to expect
       • Easy
     • Disadvantages
       • Low variety
       • Invincible to supplier

4. Closer Tactical

   • Keep them sweet
     • Advantages
       • Long term benefit
       • Win/Win
     • Disadvantages
       • May not pay off (All or nothing)
       • Lose/Lose

5. Single Sourced

   • Committed to 1
     • Disadvantages
       • Dependency (High cost to switch)
       • Complaicancy
     • Advantages
       • High trust
       • Economies of scale

6. Outsourcing

   • Not business focused
     • Disadvantages
       • Cost
       • Time
     • Advantages
       • Focus core
       • Utilise specialism

7. Strategic Alliance

   • Short term (Kerry Katona and Iceland)
     • Disadvantages
       • Contractual/legal implications
       • Linked risk (reputation)
     • Advantages
       • Increase brand
       • Mutual growth

8. Partnership

   • Long term collaboration
     • Disadvantages
       • Vision not aligned
       • Uneven outcome
     • Advantages
       • Mutual Benefit (shared risk)
       • Innovation

9. Co-destiny/Co-makership

   • Marriage (Currys and PC World)
     • Disadvantages
       • Loss of Identity
       • Resource intensive
     • Advantages
       • Long term benefit
       • Pooled resources