Contribution to Profit

Improving profits by improving supplier relations.

Results of our newest study, OEM Profitability and Supplier Relations, show that most manufacturing companies could significantly improve their profits – some by hundreds of millions of dollars — simply by improving their supplier relations. The results are determined by a unique economic model developed by Planning Perspectives that proves and predicts a direct cause-effect relationship between an OEM’s supplier relations and the OEM’s profitability, or in other words, a company’s return on supplier relations. Click on the links below for further information.

Read how Chrysler’s supplier relations cost them $24B: “Lost Supplier Trust, Lost Profits“,  Supply Chain Management Review, May/June 2014

Links to high-resolution graphs from the press release: 1, 2, 3, 4, 5

Supplier Contribution to Operating Income

Working Relations Index®

Foundational Activities

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