The benefits of a Value Managed Relationship (VMR) stem from the fact that the total cost of an integrated material handling system is more affected by business, design and implementation processes, than the process for procurement. By applying the VMR concept, our long-term client relationships are more positive, our company relationship is enhanced due to higher levels of customer satisfaction, and project management is much easier as project conflicts caused by specification misunderstandings are greatly reduced.

Shortest Possible Projects Schedules. Utilizing a traditional procurement process, up to 33% of the timeline may involve activities such as vendor short-listing, specification development, bidding, bid evaluation and final selection. If re-bids are required due to non-compliance or other factors, this part of the process may be even longer. Our VMR process eliminates this time due to the early development of the partnership approach.

Optimal Design. A traditional procurement generally does not lead to an optimally designed system. Sharing of strategic and project goals may not be efficient, potentially leading to a sub-optimal effort from your supplier.

VMR partners are focused on the best solution, rather than the strategic positioning that stems from a desire to win a competition. When a VMR atmosphere exists, there is the greatest likelihood of developing an optimal design. It is our firm belief that for complex material handling systems, the quality of the design has the greatest impact on the overall economics, value and return on investment of the solution implemented.

Reduced Total Investment. Using the VMR approach, several factors lead to a reduction in your investment - reduced project schedules lead to reduced operating expenses developing the system.

• Lower costs are associated with developing specifications, including possibly avoiding costly external consultants
• Costly change orders are limited by removal of inefficient specification/response model of procuring a system
• Optimal designs reduce capital investment costs
• Optimal designs reduce overall long-term operating costs associated with the system
• VMR partner bears the majority of the up-front costs of developing the systems design

Reduced Project Risks. Complex integrated systems entail assumption of business risk. VMR’s lead to the lowest possible levels of risk:

• Optimal designs limit technical risks
• Increased levels of organizational acceptance of a design due to the collaborative partnering process
• Your supplier partner, Diamond Phoenix, is implementing their own design There is generally much better continuity from design to engineering, as engineers from Diamond are assigned to the project much earlier in a VMR project.

For more information about the VMR approach or our system integration capabilities, email us at sales@diamondphoenix.com or call us at 1-888-233-6796.