Good relationships spawn good suppliers, study says

By Staff -- Purchasing, 2/11/1999

A recent survey of automotive suppliers indicates that good relationships with OEM customers makes it more likely that automotive suppliers will provide lower prices, high quality, and greater improvements in productivity.

The study was conducted by consulting firm Planning Perspectives, Inc., based in Birmingham, Mich. Ninety supplier firms were interviewed, and results also indicate that suppliers themselves benefit--through better returns--when good relationships exist with OEMs. Good relationships were characterized by two-way trust and fairness and consistent follow-through on commitment by suppliers.

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