Relationships between companies have been changing for the last 10 years plus. Suppliers in car companies have moved from ‘Just In Time’ delivery of components (or Just In Trouble occasionally) to being made responsible for complete sub-systems of the cars. They no longer just delivery components through the gates – they fit these components on the production line.
In the same vein, the relationships between a company and it suppliers and customers has also changed significantly in the way that innovation operates. I guess the first stage was the move to ensure the voice of the customer is heard in the innovation and product/feature development process. The next was fuller integration of customer requirements into formal stage gate processes and decision making criteria.
The next stage for innovation is to exploit the broader thinking power and opportunities that exist if you view suppliers as part of the innovation process. You benefit from:
- Different experience
- More heads thinking
- Greater understanding of some elements of the product/process
However, this type of closer relationship also provides opportunities for new types of relationship (see Co-opetition for some interesting new approaches to supplier-customer relationships). Being able to mine the expertise and thinking of a supplier might provide ideas that become a new joint venture, process, relationship, product set, distribution channel etc.
© Copyright 2005 Richard A D Jones
