At no time in recent history has the need for advancing supplier relationships been more evident or necessary than it is today. With the current economic climate, the need to find cost-reduction and innovation-savings ideas is at its pinnacle. Best-in-class supply management organizations continue to work hard on lowering the acquired cost of goods and services through normal sourcing techniques, whether that is strategic sourcing, reverse auctions or renegotiating agreements with incumbent suppliers.
But these same best-in-class organizations have recognized and embraced the fact that improving our relationships with current key suppliers is absolutely mandatory if we are to be viewed as successful in our efforts. And we are learning that perhaps our most successful source of cost reductions and improvement lies with our existing supply base.
Source: Inside Supply Management