Key Account Audit
The last 15 years in oil industry has seen a significant change in Procurement Practices. Major oil companies have looked to gain by forming stronger ties with suppliers through single or multi-site contacts or supplier partnership relationships. The increased size, extended duration and the 'bundling' of products into one contract dictates that achieving success as a supplier is becoming more complex and higher risk.
Invariably, 80% of a supplier's business will be from Key Accounts operating under one of these styles of contract. Success on these Key Accounts from the continuous development provides a platform for significant sustainable growth. However, failure will cause a supplier to take several backwards steps. Recovery will take a number of years of increased sales effort.
Key Account Customers will judge success or failure with reference to their explicitly defined contractual deliverables as well as a range of implicit requirements. This range may include issues such as:
- The management style of your key site personnel and team.
- The supplier's style of decision making and communication.
- The ability of the supplier to access new and complimentary technologies.
- Personnel's attitude towards HS&E, Risk, Recruitment, Technology etc.
SMC Ltd's Key Account Audit is designed to use a variety of techniques to collect data to analyse your customer/supplier relationship. Where gaps are identified improvement recommendations will be generated. These recommendations may include procedural, training, or staff structure changes, as well as sourcing product suppliers or technologies that will increase the stability and enhance the relationship.
The Key Account Audit is ideally used not just as a one-off health check but as a means of continually improving and bench marking the progress.
posted on 05 Jun 2008