Partnering

Partnering refers to the process of developing a relationship to one in which both parties are prepared to work cooperatively. It requires selecting the potential partner and facilitating changes in behaviour, such as the replacement of competition with cooperation and the development of trust. If the parties have been used to claiming value from each other in win:lose negotiations, partnering implies creating and sharing that value. For example, the parties may align the buyer’s ordering and the supplier’s fulfilment processes in a way that allows the supplier to reduce inventory levels by $100,000. In a win:lose relationship, the party with the most power would claim that benefit. In a partnership, the parties would expect to share that benefit in a more equitable way. Partnering also describes the creation of a culture where the seller is open about their costs, and the buyer declines to behave opportunistically. See also Partner and Win:Win.