In terms of product area, suppliers are partnering both within and outside of their product area to meet changing needs of their customer base. Suppliers have used partnerships as a tool to try to achieve a number of goals. Many suppliers have formed partnerships in hopes of expanding their customer base, expanding their product line, increasing their global capabilities, becoming a full service supplier, or enhancing profit margins. Others have partnered due to a request or demand of one or more of their OEM customers. In many cases, partnerships have been an effective way for suppliers to accomplish business goals.
Most suppliers are moderately to highly satisfied with the success of their partnerships.
For most suppliers, partnerships have led to an increase in sales. For many, it has improved the quality of their product or services and has positively affected profit margins. For a few, it has shortened lead time. However, other suppliers report high dissatisfaction with their partnership experience. For these suppliers, the partnership led to decreased sales and profitability, lower quality and a longer lead time.