The Dynamics of Partnership Sourcing

Abstract

Examines how and why some major UK purchaser and supplier organizations have increasingly sought to become partners. Drawing on detailed case studies of Rank Xerox, Hoover, ICL and British Rail discusses the dynamics of partnership sourcing, and analyses and exemplifies the costs and benefits to both partners and suppliers. Suggests that both partners benefit from the increased commitment and improved communications that partnership brings. Argues that purchasers derive extra advantages from partnership relations in the form of the potential for a reduced supplier base and increased scope for quality improvements in supplier goods and services. Finally, considers a number of problems, opportunities and constraints on partnership sourcing. Concludes that it is the UK cultural heritage of adversarialism in purchaser‐supplier relations which present the most significant difficulties in making partnership sourcing work.