Introduction:
There has been too much emphasis on ‘supplier ratings’ in recent years. Whilst they are important in measuring supplier performance from the point of view of quality, delivery and price, they do not really reflect relationship management. To some extent one could argue that supplier ratings are no different from the adversarial mode which persisted in the past thus presenting a win-lose situation.
Win-win situation:
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A win-win situation can only be achieved by drastic changes which take into account the needs, strengths and weaknesses of each party.
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It seems that trust is a prerequisite together with a climate of openness in communication and disclosure of information and a high commitment to see the other party succeed.
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For a win-win situation, it is not in the interest of the customer to weaken the returns of suppliers, since this will kill off the partnership after a short term.
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A win-win situation is a transformational process where benefits are maximized gradually and disadvantages eliminated.
Examples:
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Xerox and GM have for instance rationalized their dealings with suppliers and introduced a programme of continuous supplier involvement and feedback.”
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In the case of Xerox, they involved suppliers in the design of new products, in many cases substituting performance specifications for blueprint so that suppliers can design final parts them.
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GM on the other hand use team reviews for both GM’s operations and suppliers’ operations so that they can help each other.
Under TQM, both suppliers and customers are realizing the persistent need to establish strong partnerships.
