If your company really wants to
operate efficiently and
win
customers you should team up and build synergy with your suppliers rather
than bargain with them. When you start working together with your suppliers
to align your processes and eliminate the friction that costs you both time
and money, you can please
more customers down the line and create a
win-win
situation for both of you.
Integrate virtually and
co-innovate with
your suppliers.
Virtual integration
is characterized by
culturally different
value-added
relationships between
manufacturers and
suppliers who are
working together for a
common cause.
Value investing adds value to both the
investor and the investee. Investment in innovative solutions
developed by suppliers helps companies draws on the experience of
their various suppliers when inventing and designing new products.
It also helps suppliers to produce advanced innovative components
for the investor.
