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BVU9812C2G01 Value Managed Relationships Objectives Agenda VMR Definition What is a VMR? How Does a VMR Work? Strategic Purchasing Options Where Are VMRs Appropriate? In Which Categories Are VMRs Most Effective? Value Cycle Value Of VMRs—Buyer Value Of VMRs—Supplier Bain Experience in VMRs VMR Sample Agreement Agenda Partnerships Expectations Key Success Factors Key Success Factors—Strategy Key Success Factors—Organization Key Success Factors—Process Reasons for Partial Success—Strategy Reasons for Partial Success—Organization Reasons for Partial Success—Process Watchouts Agenda Sources of Value (1 of 2) Sources of Value (2 of 2) Volume/Scale Economies—Example Value Engineering—Example Systems Costs— Example Summary of Cost Savings—Example Typical Timing Agenda VMR Process VMR Process Purchasing Category Priority Purchasing Category Selection VMR Process Understand Industry Structure VMR Process Supplier Prioritization Initial Supplier Evaluation Supplier Evaluation VMR Process Partnership Development Process Supplier Configuration Alternatives Checklist for Successful Execution VMR Process Tracking Agenda VMR Example VMR Process ABC Company Purchasing Category Priority Purchasing Category Selection VMR Process Widget Industry Overview U.S. Widget Market U.S. Custom Widget Market by Color VMR Process Supplier Profiles Supplier Materials Focus Supplier Economics: Cost Structure Detail Supplier Operational Efficiency Partnership Experience Supplier Requirements Supplier Requirements (Continued) Supplier Capabilities VMR Process VMR Value Drivers Value Engineering Levers Value Engineering: Sources of Savings Options to Capture Value Engineering Savings Value Engineering Implications For Strategy Widget Value Engineering Takeaways Strategy Feasibility/Risk Evaluation Partnership Approach VMR Process Partnership Value Timeline Agenda Key Takeaways Most major fixture manufacturers grew from “mom-and-pop” operations, leaving significant room for operational improvement in