Measuring value and value creation potential in industrial markets Kim Sundtoft Hald, Associate Professor Ph.D.Department of Operations Management

3nd Supply Chain Leaders Forum 2014CBS, 2nd September 2014

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To what extend ….?

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What are the outcomes your supply chain is designed to deliver?

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Outcomes/Value to deliver?

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Both, purchasing and network functions create value for a buyer

Purchasing functions:•Payment•Volume•Quality•Safeguard

Network functions:•Innovation•Information•Access•Motivation

Walter et al. (2004)

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Relationship Value Estimation (ReVEal)

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Relationship Value Portfolio

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An example of a value constellation

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Misalignment across functions

Hald (2012)

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Misalignment will destabilize the relationships

Hald (2012)

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Expected relationship value (ERV)

Hogan (2001)

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Expected relationship value (ERV)

Hogan (2001)

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Research initiative

• We are currently running a research initiative here at CBS.

• Central questions here are:– What is the value of the supply chain?– How can supplier value be assessed?

• Do your firm want to participate or learn more?

• Please send an e-mail to ksh.om@cbs.dk