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Global Partners, Inc Newsletter
February 2007

Greetings!

in this issue
  • Building High Value Relationships with Retail Customers
  • How Aligned is Your Organization on Value Creation?
  • Creating Value-Adding Relationships Between Key Account Managers and Purchasing

  • For Global Partners, the year ahead is full of new ideas and initiatives for creating value for our clients, partners and colleagues. Therefore, our first issue of Global Perspectives in 2007 focuses on the theme of Value Creation.

    First in the Global Partners case study: Building High Value Relationships with Retail Customers, Dave Ferraresi describes a unique program that we have begun implementing with our retail clients to enable their sales people to create value for customers, even in the very short customer interactions that are typical in the retail environment.

    In the article How Aligned is Your Organization on the Needs and Methods for Creating Value, originally published in Velocity magazine, Pat Bailey, Finance Director for Key Accounts at Electrolux describes his company’s approach for systematically using financial value- creation metrics to drive business at key accounts.

    And lastly, an insightful Thought Leadership White Paper co-authored by Charles Kellogg and Ohanes Misirilian, describes the shift in thinking and behaving among a new breed of ‘value-driven’ purchasing managers.

    As always, we look forward to hearing your thoughts and ideas. Please feel free to send your comments to phesselschwerdt@globalpartnersinc.com

    All the best,
    Paul Hesselschwerdt
    President
    Global Partners Inc.

    How Aligned is Your Organization on Value Creation?
    puzzle

    Driving business profitability through customer value creation is a major undertaking, especially for global companies with highly complex customers spread around the world. Five years ago, the European division of AB Electrolux, an international household appliance company, began installing the principles and tools of measurable financial value creation at the core of the division's strategic account management system.


    Creating Value-Adding Relationships Between Key Account Managers and Purchasing
    cogs

    Traditionally the success of a key account manager has often been determined by how effectively he or she is able to avoid the influence of their customer’s purchasing department. Both the key account manager and the customer have rightly viewed the purchasing function as the cost-reducing arm of Finance, focused solely on extracting maximum discounts from suppliers. Purchasing was often not permitted to look beyond short-term, year-to-year spending and the idea of creating value-adding relationships with key suppliers was very far from its mission.


    Building High Value Relationships with Retail Customers
    credit card machine

    In today’s retail landscape, chain stores competing primarily on price and selection dominate the market. In this environment, few retailers consider the possibility of building value-added relationships with customers.

    Imagine if sales people could create real ‘value’ for customers by understanding their problems and needs and providing ‘solutions’ in the form of products that address those needs.

    Read on...
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