Mid-2000 was United Technologies Corporation (UTC), two years into a supplier development program integration. The focus of this initiative is to use the relationship to “key” suppliers in its entirety was to strengthen the supply chain. The qualities sought in the relations based on long term commitments, confidential information exchange, collaborative continuous improvement efforts, and sharing risks and rewards. Both the nature of these relationships and associated behaviors were new fo … Read more »

Mid-2000 was United Technologies Corporation (UTC), two years into a supplier development program integration. The focus of this initiative is to use the relationship to “key” suppliers in its entirety was to strengthen the supply chain. The qualities sought in the relations based on long term commitments, confidential information exchange, collaborative continuous improvement efforts, and sharing risks and rewards. Both the nature of these relationships and associated behaviors were new to UTC and was a great challenge. UTC believed it made progress from one provider to streamline integration. However, some believed UTC suppliers that they will not receive any of the profits from these initiatives and viewed UTC so often only focused on cost reductions. UTC Global Supply Management organization hoped to individual supplier relationships supplier to investigate and address concerns. The aim was to support high-potential suppliers so that they could improve their performance, and at the same time, better align with UTC objectives for a more productive and less expensive range of reliable supply chain partners.
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Robert E. Spekman
Source: Darden School of Business
14 pages.
Publication Date: Jul 19, 2001. Prod #: UV2914-PDF-ENG
United Technologies Corporation: Supplier Development Initiative HBR case solution

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