A well known manufacturer supplied several different lines from different factories from around the world to an even better known retailer. Generally the working relationships had been very good but the manufacturer realised that the relationship, worth many millions of pounds per annum, was deteriorating fast.
They were not sure why but felt they were in danger of losing the business. They asked for our help and we did so by treating each of the lines to that retailer as sales to different customers and applied one of our services.
We identified that all of the business was actually going well except that more recently they had taken on a particular specialist line for the retailer that they did not usually provide to any of their customers. They did it as a “favour”. However, they were just not geared to that work and could not meet either what were very tight deadlines or the guaranteed quality required.
That was costing the retailer business and reputation and in turn that was spoiling relationship as a whole between the two companies. The two companies sat down with our report and agreed they got on really well but had made a mistake with the line taken on as a “favour” which they then agreed should be given to a specialist supplier.
They continued to work in harmony doing many millions of pounds of business together.