Case Report

ABB and Caterpillar (A):

Key Account Management

Submitted By:
Sonali Bhattacharjee PGP/21/198
1. What are the specific payoffs for both customer and supplier if they can achieve a true win-
win partnership?

To achieve a win-win partnership, the BU and the KAM should work together and resolve internal
conflicts, before resolving issues with the customers. The key points are:

 There is a need for ABB’s whole turbocharger unit to work as a team

o KAM (Key account management) – helps generate more sales from the same
customer
o Follows the principle of ‘sell more to existing customers’
o Key account manager should invest time in building relation with the client, but along
with the team
 Proper division of responsibilities
o Who makes the final decision?
o Where should the P&L finally lie?

The specific payoffs for the stakeholders involved are:

CUSTOMER

 A key account of ABB makes Caterpillar enjoy individualized attention and the best service
from ABB
 Lesser conflicts result in easier decision making and arriving at a consensus with minimum
hassles
 Change in relationship from a supplier to a partner
 New opportunities to add value to Caterpillar will be unearthed
 Proper scheduling of meetings and less confusion created

SUPPLIER

 Increase in topline revenue – more business from the same customer

 Better customer management – working groups overviewed by a steering committee could
resolve significant issues
 Better tapping of resources – sales reps and support personnel in various divisions are
effectively used
 More likely to gain access to executive level meetings