1Robertson Cox / Sourcematix Confidential © Robertson Cox 2011. All Rights Reserved.

Strategic SourcePlanning Templates

Strategic SourcePlanning Templates

2Robertson Cox / Sourcematix Confidential © Robertson Cox 2011. All Rights Reserved.

Strategic Source Planning

A full source plan covers all elements in the supply chain from the end customer, or the focal organisation undertaking the analysis, upstream to the raw materials in the chain.

It defines the revenue flow, the physical supply of goods/services and the competitive forces and power structures in the chain.

An accelerated source plan analyses only at the first, second and perhaps the third upstream tiers in the chain.

The power regime mapping is a more graphical representation of the complex power regime network that exists in the chain, based on the source planning analysis undertaken.

The templates provided can be utilised as they are, or modified if the user wishes to create a more comprehensive analysis.

Users are simply requested to create presentation analysis that allows other users to understand the physical and value flows relative to power structures in the chain when devising their own presentational material.

The diagram overleaf demonstrates how a strategic source plan and power regime map is compiled:

3Robertson Cox / Sourcematix Confidential © Robertson Cox 2011. All Rights Reserved.

HIGHDEFINITION

TV

Example Strategic Source PlanA HIGH-LEVEL STRATEGIC SOURCE PLAN FOR A HIGH DEFINITION TELEVISION

Monopoly supplier with

limited competitors,

95% net margins

Limited competition

in supply market with

few dominant players, 60% net margins

Few players with

reputation for sound (e.g. Bose), but competitive market, 35% net margins

Many suppliers,

highly contested,

low switching costs, less than 5% margins

Many suppliers, but

mergers occurring. Margins

currently less than 10%

Many suppliers, highly contested,

low switching costs, less than

5% margin (except for Dell)

but these are declining

Many suppliers, highly contested marketplace, low switching costs,

less than 5% margins

Many suppliers, highly contested,

low switching costs, less than

5% margins (unless supply

shortages occur)

Highly contested marketplace,

many supplier, low switching costs,

less than 5% margins

THE END CUSTOMER PAYING THE

PURCHASE PRICE OF $1,000

100% OF VALUE

FINAL ASSEMBLY

SUB- ASSEMBLY COMPONENTSSUB-

COMPONENTS

THE PERFORMANCE OUTCOME AND COMPETITIVE (BUYER AND SUPPLIER POWER) ENVIRONMENT

Original equipment

manufacturers(Sony, LG, Panasonic

etc.)

Retailer/ Wholesaler Control

BoardsBoxes

Sound Components/

Speakers

Digital Receivers

LCDPanel

Displays

Various (wiring, fans, cabling,

capacitors, etc.)

Rawmaterial suppliers(various)

5-25% of purchase

price

10-35% of purchase price

12% of purchase

price

5% of purchase

price

5% of purchase

price

6% of purchase

price

23% of purchase

price

12% ofPurchase

price

2% ofPurchase

price

THE VALUE (REVENUE) CHAIN

THE PHSYCIAL SUPPLY CHAIN

4Robertson Cox / Sourcematix Confidential © Robertson Cox 2011. All Rights Reserved.

Example Supply Chain Power Regime

FocalBuyerFocalBuyer First-TierFirst-Tier Second-

TierSecond-

Tier Third-TierThird-Tier Raw Materials

Raw Materials

BuyerBuyer

11

11

22

22

22

33

33 RMRM

RMRM

> >

0

=

>=

=>

>

=

=

> Buyer Dominant

>

Supplier Dominant= Interdependent Independent0

0

5Robertson Cox / Sourcematix Confidential © Robertson Cox 2011. All Rights Reserved.

VALUE (REVENUE) CHAINVALUE (REVENUE) CHAIN

PHYSICAL SUPPLY CHAIN STAGESPHYSICAL SUPPLY CHAIN STAGES

SUMMARY OF KEY MARGINS AND COMPETITIVE FORCES AT EACH STAGESUMMARY OF KEY MARGINS AND COMPETITIVE FORCES AT EACH STAGE

POWER REGIME ANALYSIS OF DYADIC BUYER-SUPPLIER RELATIONSHIPS AT EACH STAGEPOWER REGIME ANALYSIS OF DYADIC BUYER-SUPPLIER RELATIONSHIPS AT EACH STAGE

Strategic Source Planning Template

6Robertson Cox / Sourcematix Confidential © Robertson Cox 2011. All Rights Reserved.

Supply Chain Power Regime Template

FocalBuyerFocalBuyer First TierFirst Tier Second

TierSecond

Tier Third TierThird Tier N TierN Tier

YouYou

> Buyer Dominant

>

Supplier Dominant= Interdependent Independent0