Publications
Publications
- April 6, 2022
- Harvard Business Review Digital Articles
In Uncertain Times, Big Companies Need to Take Care of Their Suppliers
By: Willy C. Shih
Abstract
Many large original equipment manufacturers (OEMs) have long been ruthless with their suppliers, demanding extremely low prices and loading them up with risks. Given that the current turmoil buffeting global supply chains is unlikely to end anytime soon, OEMs should reconsider their supplier policies. They include moving beyond their transactional behavior and treating suppliers more like partners, implementing greater price flexibility in contracts, and rethinking inventory levels and where in the supply chain stock is carried.
Keywords
Supplier Relationship; Supply Chain Management; Supply Chain; Relationships; Risk and Uncertainty; Auto Industry; Industrial Products Industry; Manufacturing Industry; United States
Citation
Shih, Willy C. "In Uncertain Times, Big Companies Need to Take Care of Their Suppliers." Harvard Business Review Digital Articles (April 6, 2022).