✓ The relationship between customer and supplier should be based upon trust, dedication to common goals and objectives, and an understanding of each party’s expectations and values.

Benefits of Partnering

The benefits of partnering include:

1. improved quality:
2. reduced cost:
3. increased productivity:
4. increased efficiency;
5. increased market share;
6. increased opportunity for innovation; and
7. continuous improvement of products/services.

Japanese View on Partnering

The Japanese partnering concept is Keirestu. The key point of Keirestu is developing long term relationships with a few key suppliers rather than having short term relationship with many suppliers. Based upon a relationship of trust and long-term mutual interests, nowadays, many customer firms are willing to invest in a few key suppliers rather than requiring several suppliers to constantly bid against each other.

 Key Elements to Partnering

The three important elements to achieve the customer/supplier partnering relationship are:

Long-term commitment: Long-term commitment provides both customer and supplier the much needed environment to achieve the planned  objectives. Because to set up and solve the problem of continuous improvement, both parties may require the sufficient time.

Trust: Mutual trust between two parties forms the basis for a strong working relationship. Trust enables the partners to effectively combine their resources and knowledge. It results in a ‘win-win’ situation for both partners.

Shared vision: Both the customers and suppliers have the common goal i.e., to satisfy the end user. In order to ensure this goal, both parties should share and understand their goals and objectives. This concept is also known as mutual strategic planning.