page 1
page 2
page 3
page 4
page 5
page 6
page 7
page 8
page 9
page 10
page 11
page 12
page 13
page 14
page 15
page 16
page 17
page 18
page 19
page 20
page 21
page 22
page 23
page 24
page 25
page 26
page 27
page 28
page 29
page 30
page 31
page 32
page 33
page 34
page 35
page 36
page 37
page 38
page 39
page 40
page 41
page 42
page 43
page 44
page 45
page 46
page 47
page 48
page 49
page 50
page 51
page 52
page 53
page 54
page 55
page 56
page 57
page 58
page 59
page 60
page 61
page 62
page 63
page 64
page 65
page 66
page 67
page 68
page 69
page 70
page 71
page 72
page 73
page 74
page 75
page 76
page 77
page 78
page 79
page 80
page 81
page 82
page 83
page 84

Supply chain September 07 Businessexcellence 13 VRM, or vendor relationship management, is the reciprocal of CRM (Customer Relationship Management). VRM provides industrial, distribution, and a wide range of enterprises with the technology and tools for efficient vendor interactions that benefit both parties. “Until recently, CRM systems took on the full burden of relating with customers,” explained Larry Caretsky, president of Commence Corporation. “VRM technology provides complex enterprises with the means to take some of the CRM functionality and to help make markets work for both the vendors and customers. The goal of VRM is to improve the relationship between demand and supply by providing new and better ways to relate to each other.” In a true business processing model, VRM improves markets by providing mechanisms that equip full-service organizations to be independent leaders rather than lagging participants in relationships with vendors and other parties on the supply side of the marketplace. VRM works because vendors have reason to value it, and industrial and distribution organizations have reasons to invest the necessary time, effort, and attention to implementation. ProjectVRM is headquartered at the Berkman Center for Internet and Society at Harvard University and headed by Doc Searls, a fellow with the Center. The group has identified certain principles and encouraged input and participation in the development of the VRM concept. The principles of VRM identified by ProjectVRM are: 1. User-centricity 2. Reduce, reuse, recycle (don’t reinvent the wheel) 3. Reciprocity & everybody wins 4. Leverage network effects 5. Relationships are more than transactions 6. Solve real-world problems