Implementing the Partnership Concept

Essay by EssaySwap ContributorUniversity, Master's February 2008

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Partnership relies on teamwork and a commitment to continuous improvement. It is a cultural shift in relationships and needs a corresponding cultural shift in the individual partnering organizations if it is to succeed. The relationship is long term and continuing.

It has suggested the following actions which need to be considered in order to implement the concept.

1. First identify which are suitable for partnership. Do this by relating partnering to our company?s business strategy and use purchasing portfolio analysis techniques to assist. Rank its according to their suitability for partnership.

2. Sell the concept to top management, other influential members or departments of your organization, and to potential partners. Point out such aspects as marketing and cost advantages, strategic advantage and so on.

3. Choose likely partners in the light of their previous performance and their potential ability to perform in a partnership.

4. Agree with the potential partners the style of the relationship, tangible and (if possible) intangible benefits.

Also, agree a policy for continuous improvement. Both parties must make and maintain commitment to the partnership.

5. Make the partnership work by: keeping all parties advised; building teams consisting of members from suitable departments from both organizations; monitoring and measuring progress continuously; and constant refining and development.

It is less easy to establish such a relationship in the public sector owing to the requirements of the EU Procurement Directives. Advice is normally that partnering relationships in the public sector should not exceed three to five years, after which a retendering exercise should be undertaken. In the private sector, relationships are expected to be of longer duration but there is some evidence that no more than 30% are successful.

Selecting a Partner After determining which purchases are strategic and worthy of consideration for supply by means of a...