16 February 2008

Tips for Supplier Integration

While integrating suppliers in the New Product Development (NPD) phase can capture significant competitive advantages and positive results, companies are taking comprehensive initiatives.

1. Getting suppliers involved earlier
2. Consulting with suppliers for substituting alternative materials
3. Gaining updated information about improving components or processes
4. Managing supplier relationship by exclusive negotiation and regularly meeting with decision makers and executives
5. Pursuing mutual trust and seeking risk-/cost-sharing relationship
6. Generating formal agreements with suppliers in describing joint relationship, expected results, ownership, patent rights, and nondisclosure provisions

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