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Friday 30 July 2010

21st century supply chains (SC21) > Relationships > The relationship measurement review process > Relationship measurement matrix (RMM)

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Relationship measurement matrix (RMM)

The relationship measurement matrix (RMM), aligned to the Supply Chain Relationships code of practice, provides a mechanism to evaluate the relationship between two or more parties, typically a "customer - supplier" relationship, involving multiple stakeholders in both organisations who interact on a regular basis.

The RMM focuses on four elements of the relationship, each with five key attributes

 

Relationships are assessed, and improvements measured, against their desired type/state (failing, reactive, operational, cooperative or collaborative) which may change over time. Stakeholders are encouraged to look at the descriptors for each of the attributes being assessed and to select the one that is most appropriate to their specific relationship(s). The facilitator's analysis tool collates all the inputs to provide an overall picture of the relationship that can be used to agree the current relationship state and to identify areas for improvement.

The tool is flexible and outputs can be tailored to the specific requirements of the facilitator and/or the relationship being assessed. It can be used to collate data and extract pertinent comments or to illustrate the results of the assessment using one, or all, of its default charts.

Gap analysis:

This chart takes the average across all the stakeholders and illustrates the variance between the parties and the desired state. Significant gaps should be addressed as part of the relationship improvement plan

 

Areas of concern:

Illustrates the number of respondents who reported the relationship as failing or reactive across any of the attributes, indicating areas where priority improvement action may be required

 

Status chart:

Provides a RAG rating against the desired state for each of the relationship elements:

  • Red indicates the relationship is failing and recovery action is urgently required to achieve the desired state
  • Amber indicates the gap between the current and desired relationship state is outside acceptable parameters and improvement action is required to close the gap
  • Green indicates the gap between the current and the desired relationship state is within acceptable parameters

n.b. The outer boundary (i.e. 100%) is equal to the desired relationship level illustrated in the GAP analysis chart.

 

The copyright in the SC21 Relationship Code of Practice, the Relationship Management Matrix and all other material on this web site vests in A|D|S. It may be freely used by A|D|S members, SC21 signatories and their customers. It must not be renamed or modified in any way without the express written consent of A|D|S.

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RMM Analysis Workbook Master V3-1-2 (3.1 MB)
RMM Questionnaire V3-1 (181.0 KB)
RMM User Guide v3 (1.3 MB)

Last modified : March 31, 2010