Product Development Partnerships: Balancing the Needs of OEMs and Suppliers Harvard Case Solution & Analysis

As products become more complex and global in scope, product development managers increasingly rely on suppliers for help. Limited resources need to develop close, long-term relationships with some of the most important suppliers. But partners often struggle in this relationship, because the conflicting needs and goals. OEM is a wish list of providers with limited resources and capabilities, including turnkey solutions, common strategies and contribute to the development of new products, product support global strategies (market knowledge or access to and presence in the field), and minimize the risks (to ensure good design , privacy, and demonstrated ability). Wish list of suppliers consists of remuneration for participation upfront legally protected interests of business and share in the benefits. OEM and supplier needs can be balanced after the Ten Commandments for their relationship: three for OEM-producers (not to manage all suppliers alike, understand that it is difficult to find good suppliers, demand more from suppliers, but to learn to be a good customer, as well as) , three for providers (recognize that the competition is getting tougher and more broad-based business looking to explore new mechanisms to use speed to alleviate the need to maintain decorum in the NPD) and four for both sides (do not let the distance performance of the basket, keep score, exercise creative approach to the opportunities of global partners to develop and promote trust). "Hide
by Morgan L. Swink, Vincent A. Mabert Source: Business Horizons 10 pages. Publication Date: May 15, 2000. Prod. #: BH048-PDF-ENG

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