In a previous article on vendor management, I suggested that the more a vendor tells you they`re strategic, the less strategic they really are. Strategic is a term that is often outdated. Whether it is purchase, acquisition, relationships or other issues, its use is widespread. A joint strategic partnership involves offering engineering, manufacturing or product development services and, with a smaller, entrepreneurial company or inventor, to a business partner to develop a new specialized product. Typically, the larger company provides capital and the necessary capabilities for product development, marketing, production, and distribution, while the small company provides specialized technical or creative expertise. Typically, two companies form a strategic partnership when each company has one or more business assets or has expertise that helps the other by improving its business. It can also mean that one company helps the other company expand its market to other markets by helping with a little expertise. According to Cohen and Levinthal, considerable in-house expertise, which complements their partner`s technological activities, is a necessary condition for the successful use of technological knowledge and skills outside their borders. [Citation required] Strategic partnerships can develop through outsourcing relationships in which parties seek long-term win-win benefits and innovations based on mutually desired outcomes. The strategic partner is the broadest relationship of the three levels.
Of course, not all strategic suppliers become partners. The strategic partner occupies the elite position at the top of the delivery base hierarchy. Partnerships develop over time with a conscientious effort on both sides of the relationship. Michael Massetti is an Executive Partner at Gartner and truly enjoys being a supply chain professional! This is serious. All opinions are my own. Strategic partnerships raise issues related to co-invention and other intellectual property rights, technology transfer, exclusivity, competition, recruitment of staff, business rights created during the partnership, distribution of profits and expenses, duration and termination of the relationship, and many other business issues. Another risk of strategic partnerships, especially between the manufacturer and the key supplier, is the potential integration of the key supplier.  Different development developments or plans can also lead to a broken strategic partnership. . . .