Chapter 6: Partners

Question 1

What does partnering mean?

Answer 1

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.

Question 2

Traditional relationships VS contemporary relationships in supplier-customer chain

Answer 2

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

Question 3

Partnering model

Answer 3

1. develop a partnering briefing
2. identify potential partners
3. identify key decision makers
4. conduct partnering briefing
5. determine the level of commitment
6. decide whether there is sufficient commitment
7. identify key operational personnel
8. form the partnership team
9. develop a mission statement
10. develop objectives
11. prioritize objectives and begin

Question 4

Different kinds of partnerships

Answer 4

1. consortium buying:
   a group of small and medium-sized companies form a partnership to save money through consortium buying.
2. 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
3. customer focus group:
   Partnership between a supplier and the users of its products or services. Group consists of customers who provide feedback.
4. research, info sharing, service provisioning,….

Question 5

Internal partnering

Answer 5

= 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

Question 6

Critical success factors of internal partnering

Answer 6

1. creating a supportive environment
2. mutually supportive alliance
3. structured mechanisms (through which employees are able to channel their ideas for improvement)
4. human resources (definition of internal partnering speaks to the definition of human resources)

Question 7

Partnering with suppliers: what is the goal?

Answer 7

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

Question 8

Requirements for success in supplier partnerships

Answer 8

1. supplier personnel should interact with employees who actually use their products
2. the price-only criteria in the buyer-supplier relationship should be eliminated
3. the quality of products delivered should be guaranteed by the supplier
4. the supplier should be proficient in JIT
5. both parties should be capable of sharing info electronically

Question 9

Evolution of supplier partnerships

Answer 9

1. uncertainty and tentativeness
2. short-term pressures
3. need for new approaches
4. adoption of new paradigms
5. awareness of potential
6. adoption of new values
7. mature partnering

Question 10

SCM

Answer 10

Supply chain management

Question 11

Emerging issues in supply chain management

Answer 11

1. Security
   With the rise of international terrorism, organizations are being forced to consider the issue of security when selecting suppliers.
2. 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
3. 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
4. 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)
5. Transition and crisis management
   The ability to handle transitions and crises throughout the entire supply chain
6. resilience

Question 12

Partnering with customers: why?

Answer 12

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?

Question 13

CRM

Answer 13

Customer relationship management

Question 14

Customer relationship management functions

Answer 14

1. operational CRM
   Focus on supporting ‘customer’ interaction (all channels)
2. analytical CRM
   Historical data - predictions
   responding to ‘customer’ needs
3. Collaborative CRM
   Easy collaboration with customers, partners,.. through all process steps
4. portal-based CRM
   tools and info tailored to employees’ needs

Question 15

Partnering with potential competitors: why?

Answer 15

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