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 The New Reality in Matching Expectations to Commitments on a Global Scale
By Dr. Peter F. Mathias, President and CEO, Mathias and Co. and Paris de l’Etraz, President, MCMS, Inc.
Over the past decade, as customers have merged and consolidated, they have come under increasing pressure from their shareholders to deliver higher returns from these mergers. These pressures have forced many customers to reassess and redefine their main business processes, particularly as they relate to managing their core service providers.
They have increasingly outsourced those activities in which they cannot be world class, and are now focusing on their “core competence”. Additionally, customers want a smaller group of core providers that will help them achieve higher levels of business performance while reducing their costs and mitigating risks. In concentrating their business with a smaller number of supplier firms, customers hope to achieve higher degrees of control over their providers, greater accountability for results, transparency in financial terms and greater convenience that comes from having to deal with fewer providers, all of whom know the client intimately.
This article examines the relationships customers have with their core suppliers.
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