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The Connected Corporation

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The Connected Corporation

How Leading Companies Win Through Customer-Supplier Alliances

Free Press,

15 min read
10 take-aways
Text available

What's inside?

Like the perfect marriage, the perfect corporate-supplier alliance leads to a long-lasting relationship and makes both parties stronger. But also as in marriage, if you choose the wrong partner, watch out!

Editorial Rating

8

Qualities

  • Innovative
  • Applicable

Recommendation

Author Jordan D. Lewis uses the experiences of four major companies - Motorola, Philips Consumer Electronics Company, Marks & Spencer and Chrysler - to show the benefits of creating an alliance with your suppliers. The book, which is thorough and complete, if a bit long-winded, explains the benefits of such customer-supplier alliances, shows how to get started if you want to form a partnership and spells out how to maintain the relationship. The obligatory tables and figures are conveniently listed right after the table of contents. If you are in a huge rush, you can skip the book and just read the tables, because you will probably get a condensed version of the same information. But getAbstract thinks you’ll enjoy reading how these four companies fumbled through the awkward initial stages of customer-supplier alliances and then emerged into trend-setting, money-making success.

Summary

Double Your Competitive Resources

To achieve best costs, quality, and cycle time - both for its own benefit and to support its customers’ advancing expectations - a firm must form alliances with its own suppliers. This kind of partnership is called a customer-supplier alliance.

Customer-supplier alliances allow companies to double their competitive resources and improve their costs, quality, cycle times, technology and customer satisfaction. Competition today is driving firms to integrate. Companies that refuse to share knowledge limit what they can accomplish. In a strategic alliance, firms "cooperate to produce more value (or a lower cost) than is possible in a market transaction." Companies must first define that value and recognize how they need each other before they can jointly pursue it. Alliances can help firms beat the market by reducing total costs.

To identify appropriate partners, companies should evaluate their current suppliers and investigate new ones. When selecting a partner, emphasize corporate culture rather than surface qualities, because that is where most organizational strengths lie. Obviously, organizations should join with suppliers whose...

About the Author

An international consultant, Jordan D. Lewis is also an author, expert on strategic alliances and former lecturer at the Wharton School of the University of Pennsylvania. Lewis is a fellow of the World Economic Forum.


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