BUILDING RELATIONSHIP BETWEEN OEM CUSTOMERS AND SUPPLIERS IN PRODUCT INNOVATION DEVELOPMENT PROCESSES IN B2B MARKET

The main focus of this article is to present conditions to build relationships between Original
Equipment Manufacturers (OEMs) customers and their suppliers in product innovation development
processes in the B2B market. Analysis of literature and numerous observations indicate that
the OEM companies developing the concept of product innovation very often also include suppliers
in these processes. These processes are related to cooperation in research on new materials
and technological solutions, manufacturing processes and product quality assurance. A key element
to start cooperation on product innovation is to choose reliable partners. This choice is preceded
by a preliminary assessment of suppliers. This is of particular important for the development
of new products, which must meet stringent legal requirements regarding specific threats to
the safety of users and the environmental protection. Compliance with these requirements is executed
through self-assessment questionnaires, auditing and periodic scoring assessment of the
suppliers. It should also be noted that the companies that are the buyers in the B2B market are not
limited to impose stringent requirements to suppliers. Many OEMs driving to ensure high quality
of purchased materials offer special programs to support their suppliers. Through these programs
suppliers are provided with support through training and counseling. The results of these programs
help ensure product safety and reduce costs jointly by the partners. This permits the transfer
of new product concept in the supply chain.

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