Outpartnering

The process of involving the supplier in a close partnership with the firm and its operations management system. Outpartnering is characterized by close working relationships between buyers and suppliers, high levels of trust, mutual respect and emphasis on joint problem solving and cooperation. With outpartnering, the supplier is viewed not as an alternative source of goods and services but rather as a source of knowledge, expertise and complementary core competencies. Outpartneing is typically found during the early stages of the product life cycle when dealing with products that are viewed as critical to the strategic survival of the firm.