For continuous improvement functions, complaints should be encouraged with joint solutions and corrective and preventive actions. This way each learns from the other, and the marriage can go forward even more. The big consideration should be that, with growing global competition and the never-ending shrinking profit margins resulting from cost reductions required by the automotive customer, both become as efficient as possible. In an alliance, with both companies working toward the same goal, the concept is easier to accomplish and to realize. A cooperative alliance with the right synergy can create a more successful and profitable path for both the customer and the supplier.
Good forecasts can be beneficial to both parties.
Not requiring suppliers to make reserve inventory to guarantee that all orders are met on time. This leaves suppliers with the risk of sustained obsolescence. Making better projections in conjunction with suppliers' production capability can help reduce cost and risk. Not ordering small quantities of material to hold inventory down. Multiple machine setups for small quantities can increase costs, and frequent small shipments can result in increased shipping costs.