Chapter 6: Partners Flashcards
What does partnering mean?
Partnering means working together for mutual benefit.
It involves pooling resources, sharing costs, and cooperating in ways that mutually benefit all parties involved in the partnership.
The purpose of partnering is to enhance competitiveness
The formation of partnerships should be a systematic process.
Traditional relationships VS contemporary relationships in supplier-customer chain
Suppliers - customer (manufacturer) - end user (customers of manufacturer)
Traditional:
- invisible walls that block out communication and cooperation
- manufacturer doesn’t know market nor does it understand its customer or why they buy their products
Contemporary:
- overlapping portions that represent partnering
- knowing their customer, customer is involved in development process
Partnering model
- develop a partnering briefing
- identify potential partners
- identify key decision makers
- conduct partnering briefing
- determine the level of commitment
- decide whether there is sufficient commitment
- identify key operational personnel
- form the partnership team
- develop a mission statement
- develop objectives
- prioritize objectives and begin
Different kinds of partnerships
- consortium buying:
a group of small and medium-sized companies form a partnership to save money through consortium buying. - in-house supplier representative:
partnership involving suppliers and their customers. Major customers agree to welcome in an in-house supplier representative who works with the customer’s personnel to continually improve the supplier-customer relationship - customer focus group:
Partnership between a supplier and the users of its products or services. Group consists of customers who provide feedback. - research, info sharing, service provisioning,….
Internal partnering
= employee involvement = employee empowerment
It operates on 3 levels:
- management to employees
- team to team
- employee to employee
The purpose of internal partnering is to harness the full potential of the workforce and focus it on the continuous improvement of quality
Critical success factors of internal partnering
- creating a supportive environment
- mutually supportive alliance
- structured mechanisms (through which employees are able to channel their ideas for improvement)
- human resources (definition of internal partnering speaks to the definition of human resources)
Partnering with suppliers: what is the goal?
The goal of supplier partnership is to create and maintain loyal, trusting relationships that will allow both partners to win while promoting the continuous improvement of quality, productivity, and competitiveness
Requirements for success in supplier partnerships
- supplier personnel should interact with employees who actually use their products
- the price-only criteria in the buyer-supplier relationship should be eliminated
- the quality of products delivered should be guaranteed by the supplier
- the supplier should be proficient in JIT
- both parties should be capable of sharing info electronically
Evolution of supplier partnerships
- uncertainty and tentativeness
- short-term pressures
- need for new approaches
- adoption of new paradigms
- awareness of potential
- adoption of new values
- mature partnering
SCM
Supply chain management
Emerging issues in supply chain management
- Security
With the rise of international terrorism, organizations are being forced to consider the issue of security when selecting suppliers. - Adaptability and responsiveness
As an organization’s competitors get better at using the concept and continually improve on its application, other organizations must adapt to stay competitive - Globalization
Large multinational companies that are accustomed to working with large suppliers are finding it necessary to work with much smaller suppliers to be responsive to markets in smaller countries throughout the world - Misalignment of material technologies and product lifecycles
Companies that manufacture electromechanical systems that are designed with a product life expectancy of 10-15 years are finding that the materials and parts they purchase from suppliers for normal upgrades and maintenance are not available (e.g. semiconductors) - Transition and crisis management
The ability to handle transitions and crises throughout the entire supply chain - resilience
Partnering with customers: why?
The rationale is customer satisfaction. The best way to ensure this is to involve customers as partners in the product development process. Doing so is, in return, the best way to ensure competitiveness. Customer-defined quality is a fundamental aspect of total quality
- who knows better what the customer wants, you or the customer?
- what makes more sense, guessing or asking the customer?
- can a producer benefit from seeing how its product is used by customers?
- what costs more: early design changes or product recalls?
CRM
Customer relationship management
Customer relationship management functions
- operational CRM
Focus on supporting ‘customer’ interaction (all channels) - analytical CRM
Historical data - predictions
responding to ‘customer’ needs - Collaborative CRM
Easy collaboration with customers, partners,.. through all process steps - portal-based CRM
tools and info tailored to employees’ needs
Partnering with potential competitors: why?
The most widely practiced form of partnership among SMEs is the manufacturing network. This is a group of SMEs that cooperate in ways that enhance their quality, productivity and competitiveness.
Mutual need and interdependence are the characteristics that make manufacturing networks succeed
- joint production, education and training, marketing, product development, technology transfer and purchasing
