Difference between suppliers and partners
A supplier is often selected through a traditional bidding process and provides goods or services in standardized transaction patterns for a period of time conforming to standard terms and conditions. When the transactions end, the business relationship ends.
A partner, on the other hand, is a tailored business relationship based on mutual trust, openness, and shared risk and reward that yields a competitive advantage. Partners often participate in product design processes across organizational and geographic boundaries. Partnerships are fluid, flexible relationships that depend on honesty and integrity to succeed.
Factors to prefer partner rather than supplier:
- Achieve a leadership position against your competitors. Increase market share and competitive advantage.
- Shorten time to market. Gain production efficiency.
- Find ways to reduce price. Attain mutually beneficial cost reductions.