Commentary: What Is the Bottom-Line Value of Trust?
What is the bottom-line value of trust? Put another way, what's the cost of squeezing your suppliers so hard it hurts them? GM has been answering that question for more than a decade, since the days of Ignacio Lopez. The survey of Tier 1 OEM suppliers summarized in this issue just gives more weight to what distributors work hard to communicate effectively to customers every day: Great supplier relationships give customers greater competitive advantage.
Some customers, like GM, still don't get it, even though their industry position has moved from arrogant and dictating industry gorilla to unfamiliar territory - smaller and losing market share. Enlightenment about suppliers won't fix all of GM's challenges (health care), but it has to be a large component. The challenge ...