Supplier/OEM Relationships

The relationship between companies and their suppliers is always an interesting one.  The story between the two companies often reflects the relationships that t hey obtain.  Have they been working together for years, months, days?  What are their links? Do they communicate daily, weekly, monthly?  How often do they order from their suppliers?  Often a supplier considers their customer a partner, two companies working together to better the industry that they work in.  In the electronics industry this is crucial.  Most projects require the supplier’s product in order for the project to work.  Choosing a supplier, is a hard choice with so many options on the table, but when it boils down to it, the right supplier will turn into a lasting relationship/partnership that could last years and create less stress for the oem. 

Key characteristics that build a great partnership foundation are:

• Product Quality
• Trustworthiness
• Guarantee
• Smooth and easy communications
• Great track record
• On time deliveries
• Sustainability
• Understanding where the OEM stands and is going in the future-having a mutual respect for each other’s goals. 
• Risk Management
• Honesty-when something is going right or is behind, be honest and upfront. 
• Both parties need to be frequent in the feedback.   If the supplier sees how a product could be done better, share that with the OEM. If the OEM has an issue with the product being provided share that.
• Integrity  
• Support
• Excellent Strategic moves for both parties
• Knowledgeable about the industry
• Strong drive towards the future

*Communication                      *Honesty                          *Understanding                 * Trust

These are the four most important characteristics that BOTH supplier and OEM must have in order for a partnership to grow and work.

 You may ask yourself, why is building a partnership with your suppliers so important?  The answer is this, once a partnership is born—it typically is unbreakable; unless one of the parties breaks one of the 4 key characteristics.  Partnerships are two companies working for a common goal, they understand each other, and they want the same thing.  Great suppliers want their customers to be successful; they want to be a part of them achieving that.  They both move at the same time like a well oiled machine.  The electronics manufacturing industry is built on great partnerships and will continue doing great things as long as these relationships remain strong. The supplier needs to be the customer’s missing puzzle piece, and once found the whole puzzle is complete.  

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