Picking ten partners

Carlos Cordón and Thomas E. Vollmann

Chapter Chapter 1 in The Power of Two, 2008, pp 9-26 from Palgrave Macmillan

Abstract: Abstract Most of us are familiar with the traditional Western approach to buying and selling. It is a wide-open process in which a company may juggle hundreds—or even thousands—of partners, pitting them against each other. But today, a growing number of companies are taking a radically different view. Buying at Honda, for example, is strategically based on “super suppliers”—a small number of firms with which the company works closely to develop a dominant cost advantage. In a similar fashion, selling at the engineering giant Asea Brown Boveri (ABB) is now focusing on developing special relations with key customers—increasing the total sales volume to these customers by tenfold or more.

Keywords: Supply Chain; Capacity Utilization; Senior Executive; Supply Relationship; Important Customer (search for similar items in EconPapers)
Date: 2008
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-59496-8_2

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DOI: 10.1057/9780230594968_2

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