collaboration

Supplier as Partner

Customer-supplier relationships make up the web of today‘s modern economy. Globalization is demanding more and more specilization. No company can succeed without trusting relationships with suppliers.

Nonetheless, it is the suppliers who first feel the pain when the economy weakens. German companies, however, do their best to maintain their viability, their strength. They want their suppliers to succeed along with them. Suppliers are viewed as partners in innovation.

Germany‘s largest global companies stress, therefore, time and again the importance of maintaining partnerships with their suppliers, how they together strive to establish ever higher standards of quality.

One of the largest German manufacturers of medical technology stated recently that a supplier‘s size in terms of revenue is far less important than its technical ability and willingness to work together over a long period of time. They see themselves as partners in product development.

Another German supplier operating worldwide has developed into a major customer in its own right, setting up a complex international network of suppliers, integrating its research and development area with a few selected suppliers. Its motto is: Des einen Lücke, ist des anderen Expertise, loosely translated as: The gap in the one company, is the expertise of the other.

Collaboration in the American business context is defined first und foremostly by the customer. They not only define what they want, but also to a significant extent how they want it. Examples

On the same page

The first step an American supplier will take is to gain a deep understanding of the customer‘s needs. Because these aren’t always so concrete, they must also try to identify the perceived needs. The relationship with the customer should be highly collaborative on all levels, from the beginning to the end.

The American supplier, vendor, consultant, constantly strives to make sure that they are “on the same page” with the client. In fact, they work literally side-by-side with the client, going to the client’s place of work and completely adjusting their schedule. They maintain continuous dialogue throughout the process so that they always understand the client’s needs and desires, especially as they change.

This includes knowledge-transfer agreements, which detail when the customer will be able to do something on his own, without supplier assistance, so that he begins to take over the process.

Results: Because the customer exerts such a certain level of control over the external expert (the how as well as the what), the expert is held accountable exclusively for the work dictated (ordered) by the customer. How the results might affect related areas within the client company remains the responsibility of the customer. Responsibility cannot exceed scope of work.

Information: For this collaborative effort to function effectively a high level of communication between customer and supplier is necessary. Information flow is guaranteed via short-term feedback between the customer and the supplier during the entire business relationship. This allow customers to modify their requests depending on changing situations.

Faster Horses

Henry Ford, the founder of the Ford Motor Company, had a reputation for ignoring customers’ requests. Two of his more famous quotes are:

“If I had asked people what they wanted, they would have said ‘faster horses’” and “Any customer can have a car painted any color that he wants as long as it is black.”

Collaboration

In Germany two parties enter into a dialogue about matching a customer’s problem with a supplier’s solution. Once the what has been agreed upon, there is limited customer input about the how. Examples

Aufgabe

Aufgabe. Task, job, project given to a person to complete.

An Aufgabe in Germany is a job one feels obligated to do to the best of their ability. More than completing the task, it is a personal matter, a question of professionalism and integrity. People can assign themselves an Aufgabe or have it assigned to them by a third party.

The Germans say Aufgabe für das Leben, a task for life; Sie müssen Ihre Hausaufgaben machen. You have to do you homework; Man wächst mit den Aufgaben. One grows with the tasks given to them; Eine zu große Aufgabe. A task too great.

It is important for Germans to have a clear separation of tasks, clear borders delineating who does what. It is considered to be a negative sign for a team when one German says to another: „I thought that was your job.“ Even worse is when a German employee does not have an Aufgabe or has too few Aufgaben.

This could be an indication that management doesn‘t regard all too highly that employee‘s capabilities. On the flip side, German employees often take on as many Aufgaben as possible. This is part ambition, part job security, part arrogance in the sense of being able to claim to their colleagues „That they have so much to do, so much more than the others.“

For Germans it is important to have important Aufgaben, to have a lot of Aufgaben, to complete them well.