The key nexus for and against KAM are as follows,
• From the suppliers’ perspective, strategic customers have become more difficult to acquire and retain as markets mature and as such customers demand ever better service at ever lower prices.
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• But at the same time the proportion of business coming from key accounts is increasing, but the increased power of these customers makes it more difficult for suppliers to capture value from the relationship.
The benefits to the customer of being treated as a strategic account are clear; however, powerful customers may completely eat away the benefits to their supplier too by entering into such relationships. Thus relationships with very large customers may be unprofitable for suppliers. Therefore, suppliers need to understand how to capture value from their key customers. With these observations we have come up with five premises,
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