Some insights for creating a stronger link with
strategic suppliers:
While
the expectations of suppliers to be innovative, and to provide ideas and
cost-saving solutions have been the hallmark of several forward-looking supply
chains, it is important to recognize the detrimental effects of consistently saying
“no” to supplier suggestion. It can have a demotivating effect whereby
suppliers eventually would stop offering these suggestions. This is only going
to limit a firm’s ability to negotiate these difficult times.
2. The
notion of price per product (as against price per part) allows suppliers and customers
to take a holistic and a value stream view of their relationships in the supply
chain.
3. Collaborative
product design in a supply chain can enable faster product development
turnaround time and better product quality at lower cost.
4. Transparency
of schedules across the supply chain has positive ramification for all supply
chain partners.
5. Suppliers
are more than cost centers. Hence, the metrics of evaluating the procurement
function should extend beyond purchase price of parts and components.
Source: Arnseth, L. “The Power of Balanced
Partnerships,” Inside Supply Management,
November 2009: pp. 26-28.