While U.S. companies have traditionally had uneasy relationships even with their best suppliers, a new report from The Conference Board shows that things are improving. The effort needed to properly address the partnering requirement requires additional time and resources of both customers and suppliers. Powell added that one of the most exciting changes occurring in companies with innovative supplier partnerships is in product development, primarily through the use of cross-functional teams.
Suppliers are, in many cases, included in new product design and development.
A reduction in the number of key suppliers allows an organization to devote more time to the most important ones. The bottom line. Financial results and productivity are important to the continued success of supplier partnership programs. At many companies, early phases of several programs have yielded millions in savings and cost reductions. When respondents were asked what the most important factor should be in selecting suppliers, the most frequent answers were the ability to establish a long-term relationship and the commitment to using quality processes.