sharing of information and resources.
4
Value Managed Relationships
What is a VMR?
A VMR is one procurement strategy to maximize cost savings and strategic value.
6
Value Managed Relationships
Strategic Purchasing Options
VMRs can exceed the value of both traditional contracts as well as vertical integration.
Traditional "Arms Length" Approach
Procurement Strategies
Competitive Bid
Value Managed Relationship
Short-term Contract /
Spot
Longterm Contract
“Partnership ”
True VMR
Sole Source
Vertical Integration
potential of both vertical integration and traditionally negotiated "arm's length" transactions:
– a consolidation of purchases to one or few suppliers who are capable of maintaining long term competitive economics, high quality and efficient delivery