Relationship Marketing Strategy and implementation

(Nora) #1

overnight.’ Although not eager to give exact details, a simple tour round
the factory reveals many empty stock shelves where stock used to be but
has already been taken out of the system, with several other racks already
having been removed completely. Also, a glance at one of numerous charts
on the purchasing office walls shows the cumulative yearly price changes
for suppliers being a below zero figure. Things seem to be under control.
In addition, the process is spreading. Once news of the early success
spread, the American sister company decided to launch their own group.
Already a 25-strong Supplier Association has been formed. In addition,
one of Trico’s Quest members is starting its own group, fired by the enthu-
siasm and success from working with Trico.
Summing up his impression of the work, David Jones comments, ‘I
didn’t come on board that quickly at first because I was not totally con-
vinced, [but I realized that] by and large we needed a vehicle to create
improvement and that the days of rattling cages and threatening suppliers
were ended. What’s more’, he adds, ‘we enjoy it and we encourage the sup-
pliers constructively to criticise us as much as we do them, and they do!’
He continues by stressing the internal improvements and relationships
that have been built as a result of the work, ‘we’re trying to change the phi-
losophy here, with the enthusiasm generated from the 5S programme here
[at Trico], the main problem is fighting people off who want to take part!’


So what is next?


As mentioned above, the implementation of a kanban system with suppli-
ers is the next major activity for the Trico Quest Supplier Association. After
this they may re-benchmark and be in a position to set realistic targets.
They also have to consider what to do with the rest of their suppliers,
although a less comprehensive supplier development programme is
already in place.
In 1992 Trico lay at the threshold of economic prosperity. Whether they
achieved it depended on having a modern factory with world-class pro-
duction facilities and methods, a new organizational culture and a better
supplier base. The new Pontypool facility has provided the physical struc-
ture. Their Supplier Association has laid the foundations for a new rela-
tionship with their suppliers. It has also, rather unexpectedly, helped to
provide a framework for significant culture change and internal dynamism
and innovation.
The future looks bright for Trico and their suppliers.


194 Relationship Marketing

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