The Digital Battle — Customer and Supplier Relationship Dynamics

How much should customers and suppliers share with each other? What role does trust play in sharing information? Who is responsible for overcoming this major roadblock to a more effective digital transformation? Questions like this can only mean one thing — it’s time for another round of The Digital Battle.  In this episode, Thom Singer and Craig Brown welcome back Digital Enterprise Society Content Trustee Mark Pendergast for another digital battle.  These seasoned industry veterans do agree on one aspect of this debate — that trust is a severely limiting factor in the ability to achieve excellence in manufacturing. Together they debate what level of sharing is appropriate, the factors that inhibit sharing, and what exactly it will take to achieve a higher level of effective sharing that will benefit the entire digital transformation.    On today’s podcast, you will learn: How much should customers and suppliers share with each other? According to Mark, the answer is as little as possible.  There are too many downsides to sharing too much information with customers.  According to Craig, withholding information is not the way the business works.  The ultimate value should be in the customers hands.  Quality people need to see enough details to know that high quality will be maintained. The discovery process of developing new technologies should be shared.   What factors inhibit sharing?  Oversharing can lead to the loss of business on the part of suppliers.  OEMs have a tendency to switch to different sources when oversharing occurs. Long term business trust is eroded when oversharing happens.  Fear from suppliers inhibits sharing and destroys time and investment. In-sourcing products that are in greatest demand can eliminate the role of suppliers.  Legal implications play a real role in oversharing.    What are the positive implications of sharing?  More than documents, a framework for modeling is what needs to be shared.  Sharing the benefits of any product can lead to increased trust.  Neutral models would support sharing and savings for both suppliers and OEMs. Time to market and time to change would both be positively impacted by sharing.    Who should drive an increase in sharing? Safety failures will always demand improvement, independent of suppliers and OEMs.  Quality and safety will continue to be the key drivers in increased standards.  Poor relationships on both sides of this argument will only further complicate sharing.  Government regulations play a role in demanding higher safety standards.  Trust will continue to be a limiting factor in the ability to achieve excellence in manufacturing until a solution is found. Continue the conversation with us within the Digital Enterprise Society Community at www.DigitalEnterpriseSociety.org