The Trust Factor

This is an excerpt of the original article. It was written for the May-June 2017 edition of Supply Chain Management Review. The full article is available to current subscribers.

May-June 2017

Trust hasn’t always been an element in supplier relationships; all too often buyers have been encouraged to carry a big stick and get tough with suppliers to get the best price—no matter the cost. That approach to procurement is beginning to change.

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At some point, you’ve probably been on a company retreat and participated in a team-building exercise where you were urged to close your eyes and fall backward. While you may have had a knot in your stomach as you gave up on gravity, you trusted that your team mate would be there to catch you before you hit the ground. Indeed, trust in your co-workers is an essential element to moving a company’s goals forward.

Trust hasn’t always been an element in supplier relationships; all too often buyers have been encouraged to carry a big stick and get tough with suppliers to get the best price—no matter the cost.

That approach to procurement is beginning to change. Manufacturers like GM are learning that in today’s environment, developing a trusting, culturally-aligned relationship with suppliers is crucial to gaining access to the new technologies and innovations that win in the marketplace before the competition. Those close-knit relationships can also lead to better financial performance. In this issue of Supply Chain Management Review, GM describes how it launched a Strategic Supplier Engagement initiative that is delivering results on both fronts.

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