The first negative effect will be that those companies will be the last place suppliers take a new idea. Suppliers know that their new idea will be absorbed, stolen, and quickly resourced to a low-cost manufacturing center to save a couple nickels. The beneficiaries will be companies that value innovation through partnership. They will get suppliers' best ideas. They will get deep cost reductions through joint value engineering.
Businesses are more and more careful about picking their customers.
In other words, suppliers disinvest in some customers and invest intellectual and financial resources in others. Wisconsin companies are going through that disinvestment process with some customers big-time right now. Indeed, relationships are a major source of satisfaction and happiness in life. John Torinus is chief executive officer of Serigraph Inc. of West Bend. All rights reserved.