KamLibrary - Networking the e-Benefits of Global Exchanges

Even a cursory examination of the implications of global Net Exchanges makes it obvious that fundamental changes are taking place in business models, globally. Initially e-procurement is focusing on generic product, but it must soon move into exploitation of prices/terms differences, globally. This means that you could find yourself competing with your affiliate in supplying your brand to one of your global customers. Luckily the auctioneer’s policy of keeping price aspects secret may spare your blushes in the short term. And how about that agent/distributor whose contract never anticipated global access, in real time?

While fast moving customers are exploiting the immediate gains (and caused the first shock waves) of e-procurement, pro-active KAMs are anticipating the opportunities and benefits within Customer Relationship Management and Customer Fulfillment Management. These two aspects provide an opportunity and excuse to reassess and re-align all aspects of the supply chain, bringing with it the benefits of an ‘open system’ relationship for all who are willing and able to participate. In effect, assuming total and open interconnectivity will help to accelerate moves to enable the company to cope with the resultant transparency.

Ideally, the advent of global exchanges provides an opportunity to re-assess and make more effective the entire process from assessment of consumer need, demand management, e-Customer Fulfillment Management, e-Customer Relationship Management, e-Procurement, Supply Chain, and R&D. For many companies this will mean a major shift in company functions in terms of speed, flexibility and collaboration caused by the move to real-time exchange of information. And this without taking into account the need for the major shift in attitude required throughout both organisations.

Apart from the obvious need to re-balance their entire approach to channel management (do the Exchanges represent alternative, complementary or replacement channel access to the consumer for your company? Is anyone doing anything about it, locally, regionally, globally....?) and ensuring that IT capabilities are adequate, pro-active companies are realising that they can achieve many of the e-benefits by becoming part of a live network of potential value, the e-version of a traditional business network. The case for developing a working level 400-member personal network, together with ‘ways and means’ is explored in KAM Tips (see NAMNEWS March 2001) but in principle, the task confronted in moving both organisations will be insurmountable using traditional methods and media.

To effectively pull two organisations together in spite of themselves, involving the ‘separate’ agendae of people in Sales, Marketing, Category Management, Logistics, Customer Service, Finance and Production, fast enough to capitalise on CRM and CFM, means setting up and maintaining an interconnected network, a community of common interest, and helping the members develop a common vision, continuously updated in real time.

Helping the partners to make the necessary attitude switch means feeding this network with tailored analysis of latest trade developments, and helping the network members explore the implications locally and globally, at multi-level and multi-functionally. This up-to-date community, continually re-aligned to a common vision will then become more integrated around a common purpose in meeting consumer needs, profitably. Organised in this way, effective e-coordination of the two companies will help to deliver the full potential of ECR and Category Management via a total business management approach to managing the supplier/customer partnership.

If you feel that any job-role other than e-KAM is more tailor-made to drive this change from a consumer/customer/supplier perspective, without designated authority, using state-of-the-art networking, then think about it, job by job, person by person................

Date article published: 08/03/2001

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