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Picking ten partners

In: The Power of Two

Author

Listed:
  • Carlos Cordón
  • Thomas E. Vollmann

Abstract

Most of us are familiar with the traditional Western approach to buying and selling. It is a wide-open process in which a company may juggle hundreds—or even thousands—of partners, pitting them against each other. But today, a growing number of companies are taking a radically different view. Buying at Honda, for example, is strategically based on “super suppliers”—a small number of firms with which the company works closely to develop a dominant cost advantage. In a similar fashion, selling at the engineering giant Asea Brown Boveri (ABB) is now focusing on developing special relations with key customers—increasing the total sales volume to these customers by tenfold or more.

Suggested Citation

  • Carlos Cordón & Thomas E. Vollmann, 2008. "Picking ten partners," Palgrave Macmillan Books, in: The Power of Two, chapter 0, pages 9-26, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-59496-8_2
    DOI: 10.1057/9780230594968_2
    as

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