The success of these partnerships is dependent on the customer and supplier understanding how each of their respective businesses are operated and managed. Establishing and understanding that both the customer and supplier are in business to be profitable is critical to this process. When a partnership is truly mutually beneficial, it is very likely to endure any unforeseen bumps in the road. As part of the effort to reduce costs in the supply chain, strategic partnerships are also being established with the manufacturers of raw materials. The relationship between distributor and manufacturer must be a trusting and very supportive one.
Strategic partnerships have many attributes.
Additionally, the customer's loyalty, understanding, and caring are essential to the success of the partnership. We all know that customer satisfaction is no guarantee to customer retention. Therefore, successful partnerships must be based on trust, honesty, loyalty, and a commitment to succeed by each company's senior management. Customers' expectations of their suppliers have changed considerably during the last decade. Now a supplier is expected to supply products which are competitively priced, delivered on time, have consistently acceptable quality, and very good application and performance characteristics.